Business and business environment

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Table of Contents
Introduction.................................................................................................................................................3

Part 1 within your report you are required to provide critical analysis of the complexities of different
types of business structures and the interrelationships of the different organizational functions.................4

Part 2 In the second part of the report, you will explore the relationship that organizations have with their
various stakeholders and how the wider external environments influence and shape the business decision-
making. Critically evaluate the impacts of both the micro and macro factors upon the business objectives
and decision-making..................................................................................................................................11

Conclusion and recommendations.............................................................................................................15

References.................................................................................................................................................16

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Introduction
This report has been developed on the business and business environment of H&M organization. This is a
fashion retail organization deals in multi fashion accessories and clothes. H&M is the foremost
organizations in the UK dealing in best quality services. This report is showcasing the environment of
business of different sectors of the business and its organizational legal structure. The most challenging
functions are to compare the micro business environment with the macro business environment to get the
best competitive advantages. The most challenging concern is to develop a higher level of productivity
through a better working environment. This report is including the size, structure, organizational
functions, product & services, micro & macro environment and different sectors of the organizations.
These are the aspects which are critically identifying how the business environment of an organization
should be. Therefore, it would be able to give better results in organizational favor.

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Part 1 within your report you are required to provide critical analysis of the complexities of
different types of business structures and the interrelationships of the different organizational
functions.
The managerial characteristics the nature and range of the corporation organization and also implemented
the legal component within which private, voluntary and public sector organizations may be represented.
There is a better system of belief and unique character development and size that has been applied to
discover. Business owners should include different components, scopes, work, missions, aspirations, etc.
The process of globalization of companies is the fundamental elements for the country-of-the Design
business district frameworks that ensure strong development and stable economic development. It
essentially includes social direct comparison, tax collection; issue objectively, transformation scales and
ideological hazards for just about any corporation, a multidisciplinary course of treatment.

International companies, for fairly obvious reasons private, public, voluntary and third sectors, are
fundamentally different sorts. Organizations internal with corporate components are identified and joined
with different associations. Private sector partnerships are particularly worried that the international
associations maintain products or administrations primarily for the wider population and evaluate this
same business internationally. These organizations, with the sponsorship of the corporate and non-
government societies, function fundamentally for the community beneficiaries. This same best
occurrences of these organizations are the charitable work, which wants to host the people to participate
(Newman, et. al., 2020).

Public sector organization

BBC seems to be the world has ever known largest and most successful telecommunication services
association that is broadly disseminated from around the global economy and categorizes its republican
presidents. It was established following the Royal Charter and free of charge for the advantage of
administration permissions. The organization mainly focuses on the development of graduates, company
new technologies; news broadcasts but instead creations through both the order to pursue functionality.

Size and scope

Numerous components usually provided by BBC, i.e. film, helpfulness, travel, monitoring and much
more. Their corporate skills and their employees have only decided to make that entirely plausible. The
workforce of even more than 300000 representatives continuously ends up receiving more than 15
thousand leaders.

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Products & Services

The main administrations they have are distribution and broadcasting of stability of the region and the
dissemination of knowledge through official channels.

Vision & mission

The mission is to make the lives of people’s choices groups more knowledgeable and communicate up-to-
date information of the articles by programs and administrations. Vision for citizens could also be
strongly affected.

BBC's mission is to create empathy with people with daily challenges and to inform people who have the
greatest ability. They have to become the largest telecommunications corporation, despite seeming to be
Europe's largest telecom organization.

BBC's business objectives are to construct consumer confidence and generate customers’ quick-paid
services, to provide fresh and recent information to their subscribers.

Organizational legal structure

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Figure 2: (hierarchy structure, 2018)

Key stakeholders

Its employees and managers with the necessary departments can be considered as internal prominent
stakeholders (Vilčeková, et. al., 2020). The best opponent players include consumers, broadcasting
companies, governments, regulatory agencies and on and on.

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Private sector organization

H&M (Hennes & Mauritz) seems to be the selected private sector organization. This is amongst the most
instantly recognizable organisations, which further explore their products or services in a large number of
countries for all segments of customers, including teenagers, women and men. H&M is fundamentally a
fast-paced retail shop! They provide products increasing stores as well as E-commerce and explore their
offerings. H&M is the 2nd greatest discount fashion brand. It was founded in 1947 and its region is
international now.

Size & scope

By principle, this organization works with over 128,000 employees around the nations. Currently,
individuals are functioned by more of about 4500 clothes verities in even more than 60 countries. Erling
Persson founded it in 1947. This organization accounts for more than 38% of the share of the market in
the garment industry. About it, every customer segment is represented and the organization also has many
facts. Through experimentation and diversification, the scale of that kind of organization is characterized.
They are acquiring employees from different international platforms such as internet interviews, recruit
through different universities, etc. The context can be characterized as business strategy techniques,
business patterns, place, and ways of thinking including tactics.

Product & services

They deliver comprehensive international forces with the garment industry. In consideration of
incorporating different realities about clothes and accessories to customers, the services and goods are
distributed (JIAO and XU, 2020). The massive amount of realities in their stores becomes open. They
enable their customers to purchase their products directly from their chain stores or online.

Vision & mission

This organization's vision is to increase its market penetration by up around 45%. The management teams
also decided to examine their industry by trying to introduce both these equipment like watches,
eyeglasses, belts, and so forth.

This foundation's mission is to target each consumer throughout the areas it represents. One of most
essential and effective considerations is consumer satisfaction and gratification.

This organization’s business goals are to improve its market share, enhance its product performance and
improve product lines at very fair rates.

Organizational legal structure

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Source 1: (researchgate, 2017)

The regulatory framework differs from either the organizational structure that is run throughout this entity
from many other departments and roles.

Key stakeholders of H&M

Its managers, executives, the functional area of administration, Research & development, etc. are the
appropriate organizational parties to this entire organization (Aydiner, et. al., 2019). From the other side,
customers, sellers, retailers, societies, states, etc, will evaluate external key stakeholders.

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Voluntary sector organization

British Cancer Research Trusts are working with people who maintain the issues of cancer disease in a
social environment. The exam organization and working population work from a few employees who
have provided a food intake scheme plan and documentation on the components which have decreased
the amount to their lives. The assessment of cancer by the few partner organizations is sponsored and the
cancer disease operations for social awareness throughout this structure of management.

Size and scope

Cancer Research Trust is predominantly a UK-based not-for-profit, environmentally responsible

corporation in the UK and terms of strategy. The whole organization works with no income or benefit
period. They are right approximately 40000 businesses function intrinsically.  They provide houses and
apartments, food, clothing, etc. along with their extraordinary studies for patients with cancer. These are
the essential services.

Products & Services

The confidence of cancer research functions with environmental purposes and has provided the
organization with a future of marketing. We keep filling as a revenue-free organization and strengthen
current societal possibly the best-being.

Vision & mission

The mission is to manage and therefore is component of every collaborative effort with the mission of the
organization. The organization provided this same patient with an available therapeutic package and
healthcare facilities and includes information on the detrimental effects of the disease.

A operating' vision is to have a comfortable competitive landscape in the complexity of administration

and accountability to stakeholders. They do have a vision to reduce malignant cancer in the UK through
developing therapies and treatments (Sivarajah, et. al., 2019).

Their organizational values also provide protection and legal service, to provide citizens with government
hospitals, and to encourage wellness and cancer transparency programs.

Organizational legal structure

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Source 3: (Manchester, 2019)

This organizational and legal structure derives the involvement of different doctors, surgeons and many
others. Professors' suggestions and knowledge and experience on either the delivery of cancer knowledge
are distinguished.

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Key stakeholders

The participants and staff are indeed the internal stakeholders of the volunteer organization. Foreign
entities are predominantly university lecturers, physicians and healthcare professionals.

Different business functions of H&M

H&M provides its customers with product lines for every segment and supplies high-quality products and
services through all the operating condition of its business processes (Kyurova and Kiryakova-Dineva,
2019). Several of the functions of the organization include:

 Financial function: That's in the market requirement where all financial transactions are
managed to keep and maintained. The cash transaction documentation has been used.
 Human resource function: This function of this organization, by recruitment and selection,
helps in developing professional employees.
 Marketing function: This functionality allows consumer base and demand proof of identity.
This has been the most important function as the advancement of technological innovations
depends on these kinds of functions.
 Production function: This function includes the qualified opportunity for administration and
lean management approaches to provide customers with high-quality products.
 Administrative function: This component is being used to perform premium features like cloud
technology, intranet service providers, classification of employees, etc.

Advantages and disadvantages

Advantages

 The productivity of management team and specialized programs has always been actively
engaged.
 H&M's human resource management seems to provide its employees with the necessary skills.

Disadvantages

 Lack of efficiency in the collaboration with the employees while performing delegation of
authority.
 The over access in the utilization of the bureaucratic leadership.

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Part 2 In the second part of the report, you will explore the relationship that organizations have
with their various stakeholders and how the wider external environments influence and shape the
business decision-making. Critically evaluate the impacts of both the micro and macro factors upon
the business objectives and decision-making.
The performance of H&M demonstrates that this substantially creates, but has both beneficial and
detrimental effects on company processes in many areas and dimensions of the macro-environment. The
macro-environment of H&M is comparably beneficial and detrimental favorable or unfavorable two
sides. Every coin has two sides. The variables that impact negatively and positively on H&M's market
practices, such as:

Positive impacts

 Increase the access to new targeted customers: The H&M macro business environment views
this as a first value in a complex environment wherein the prospective customers can
conveniently compete within demand. It enables the customers to offer existing technologies in
line with the current developments, which undoubtedly have a positive impact on corporate
performance and reduce investment income & economic expansion.
 Obtainment in the empowerment in reducing additional cost: The elimination in customer
behavior and the shopping behavior of the customers aims to increase company competitiveness.
Most firms distribute their goods; nevertheless, H&M investigates the competitive environment
conditions systematically.
 Capitalization through the central part of competencies: The significant benefit is
capitalization because the analysis of the external environment can help H&M managers
capitalize on product development. The significant benefit is capitalization. The outside market
environment helps identify the customer’s preference and keeps the corporation from
participating in outdated designs of fashion products (Aithal, 2016).

Negative impacts

 Instant changes in the buying behavior of the customers: Macro-environmental analysis will
minimize the profitability of the product outlets produced by H&M, also because the apparel
market constantly shifts trends and fashion. It may negatively influence manufacturing and
disrupt inventory.

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  Unnecessary restrictions and regulation by the government: Governmental restrictions will be
implemented particularly although this organization has negative repercussions. It reduces the
effectiveness of the organization.
 Implementation of new technological changes: The employees consider it very challenging to
embrace the developments as that would do have a financial effect on the organization as
innovative products reach the marketplace.

Identification of strengths and weaknesses

The external and internal business surroundings of the H&M may include several factors that affect the
business globally are mentioned as below:

Internal analysis

 Pricing structure: The pricing framework covers assessment increasing profits and added value
that affect the overall performance of the company.
 Organizational legal structure: H&M how sophisticatedly works with some of its
identifications and hierarchies shape this same powers and flaws of its commercial enterprise.
 Innovative and technological aspects: H&M will obtain its weaknesses and strengths. If they
want to get the technology or not varies depending on them.

External analysis

 Rivalry organizations: These would be the main factors influencing their emotional responses
and capital investments' advantages and disadvantages (Belas, et. al., 2018).
 The environment of business: It significantly affects capabilities and vulnerabilities in areas that
are far beyond considering the alternative, such as current events, national policies, spending
patterns of customer base, etc.
 Distribution system and supply chain management: The very well-defined characterization of
distribution networks further positively influences the transformations.

The interrelation of strengths and weaknesses with external macro factors

The strengths and weaknesses of the business environment of H&M may affect its external macro factors.
The interrelations are mentioned as underneath:

 Growth & size: It makes it easier to identify the real economic power and authority that seem to
be critical for minimizing and greatly increased vulnerabilities.

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  Prosperity: Everything is just necessary to refer to growth and economic growth with just about
any market aspect. The best way to manage outside business circumstances is to strengthen assets
and consider removing vulnerabilities.
 Recent trends of marketing: Activities involving often influence the economic climatic
conditions that develop into organizational characteristics.
 Economy and technology: Both commercial activities are technological and economic
considerations (Ajayi, 2016). An organization's strength is if nobody uses H&M technology.

PESTEL analysis supported by detailed investigation

The PESTLE research is determined as H&M output produced. Some of the other corporations have an
influence on the environment of H&M's investments. The analysis results of PESTLE are indeed the great
techniques that incorporate numerous facets:

 Political: Economic growth and geopolitical perspectives were included in political concerns and
provide an intimate understanding of their effectiveness. This component may include company
strategy, parliamentary and governmental decision-making processes.
 Economical: There are considerations influenced by the marketplace, conditions, governmental
factors and then have the socioeconomic characteristic of this entire organization: interest rates,
income tax rates, tariffs, excise duties, value-added tax rates.
 Social: Social factors include different functions that generate from the consumers' operational
exercises. The social factor is influenced by the culture of commercial enterprise, attitudes,
values, social trends and the manner people are living.
 Technological: Not even just operational activities are part of a rapidly increasing component
since technological and scientific breakthroughs play an important role in the organization.
Besides, various electronic payments and online entertainment tactics can sometimes result in
technological changes in the marketplace (Saleem, 2017).
 Legal: H&M has been one of the largest corporations in the fashion industry and is
fundamentally willing to take responsibility for complying with legal requirements and
regulations. Environmentally, H&M independent legal initiatives are now to be put into action for
working.
 Environmental: Environmental impacts must, therefore, be addressed as a direct consequence of
a comprehensive examination of emerging market launches in various organizational operations.
H&M continues to perform better & appropriately in homogenous products.

SWOT analysis supported by detailed investigation

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 Strengths
 H&M provides wide variety products
which include product lines for a range of
markets.
 In many various brands such as H&M,
COS, Weekday, Monki and other H&M
offer its product portfolio (Grewal, et. al.,
2015).
 Geographically throughout the nation,
H&M has a strong and diversified reach.
H&M has retail outlets in 6 continents in
far more than 60 countries.
Opportunities
 H&M continuously works in increasing its
manufacturing base around the world.
Throughout 2016, the organization opened
400 separate shops.
 In specific instances of the garment
industry, emerging economies nationally
and internationally have a huge potential.
 People are product-aware, which provides
brands similar to H&M the chance to take
advantage of need and.
Impacts that both macro and micro factors
The effects of both the microenvironment and macro business environment can indeed be expressed in a
variety of methods, but the business needs to investigate how well these factors should be considered
(Nedelcu, 2013). The geographical and socio-factor and corporate priorities and decision-making:
Weaknesses
 For its good and services, H&M needs to
rely heavily on reliance third-party
suppliers. H&M companies outsource the
production of products from around 80
countries across the world and therefore
have reduced production controls.
 H&M manufactures affordable fashion and
depends on numerous manufacturing
companies to carry in innovations from
international companies.
 H&M is best known for generating cost-
effective clothes and shoes; however, this
also tends to affect H&M price.
Threats
 As developments are growing rapidly, the
clothing industry is undergoing swift
changes. Helping to increase the procedure
of new times was also supported by social
networking sites (Helm and Gritsch, 2014).
 The benefit and risk of eCommerce for
famous products are that smaller entrants
can be visible on the same site when
famous products and therefore new arrivals
will affect brands like H&M.
 The increased production costs get an
impact on the cost of an industry's
manufacturing. The corporation's
profitability is influenced by this increase
in prices.
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Impact of the micro-business environment

 It influences the supply chain management and tracks H&M’s performance by purchasing
distributors to facilitate the exchange of goods with the target consumers.
 The customers purchase the product to accommodate themselves and implement marketing
campaigns according to the latest developments.

Impact of the macro business environment

 The objective is to contribute to the economic a principle that stimulates benefit and income from
either the effective organizational output. The decision-making process can only really be a
standardized product.
 Economic and social influences frequently significantly impact H&M company products and
services (Fitó-Bertran, et. al., 2014). It brings products to the market and that they are
knowledgeable of the introduction of quality technologies.

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Conclusion and recommendations
Recommendations

This segment is used to centralize and evaluate all the significant information and recommendations of
H&M in the fashion industry that encourage this organization and also some start creating current and
potential progress (Eurich, et. al., 2014). The recommendations are mentioned underneath:

 In the generations to follow, as people become more aware of it and change their personal
preferences environmental and social issues for the cleaning industry, the fair trade niche
products will keep increasing to encourage the global value chain to generate even more high-
valued components.
 H&M could also work in countries to broaden the components they are using to the role of
product, increase the market diversity and broaden the final marketplaces about which they export
market.
 H&M will collaborate with its governments to ensure that the country's trade agenda and
interactions with one another are greatest suitable to the needs of the garment industry.

Conclusion

The chapter concluded that H&M is mandated to learn different technologies which are not commercially
available or used by every other entire organization. In able to pursue government requirements,
organizations must have had several functions within an organization. Any of the regulations have been
introduced to reduce global import controls by both the country. Social factors usually involve mainly this
same taste of consumers, their preferences and global market alternatives. The original objective of this
function is to make economic advancement. Across all their channels and retail outlets, the take
appropriate steps H&M are the same. If good quality fabrics as well as neutral materials will use for the
manufacture of commodities so that it becomes very important to identify new customers. These other
microeconomic and micro-environment considerations consequently gain financially from the proof of
identity. Hence, the business environment of H&M is required to follow all the necessary aspects of
micro & macro environment for the betterment of the business.

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