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Business Environment

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Contents
Introduction:...............................................................................................................................................3
P1 Explain different types and purposes of organizations; public, private and voluntary sectors and legal
structures....................................................................................................................................................3
P2 Explain the size and scope of a range of different types of organizations..............................................4
M1 Analyze how the structure, size and scope of different organizations link to the business objectives
and product and services offered by the organization................................................................................5
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure......................................................................................................6
M2 Analyze the advantages and disadvantages of interrelationships between organizational functions
and the impact that can have upon organizational structure......................................................................7
P4 Identify the positive and negative impacts the macro environment has upon business operations,
supported by specific examples. P5 Conduct internal and external analysis of specific organizations in
order to identify strengths and weaknesses................................................................................................8
P6 Explain how strengths and weaknesses interrelate with external macro factors.................................11
Conclusion:................................................................................................................................................11
References:................................................................................................................................................12
Introduction:
Business environment analysis is one of the major analyses that help to get the result of the
potential strength, weaknesses, threats and opportunity of the business to respond to the highly
competitive market. Management needs to give more concern about their own strength to use
into eh competitive world to beat their competitors. there is different factors need to analysis to
set the effective business environment for the business. This report will describe different types
of business, their structure, scopes, and relates with M&S to show the best possible way to reach
goals and objectives of the business by making effective interrelation between all the
departments and functions of the business

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

and voluntary sectors and legal structures.
In general, people are forming an organization to reach the benefits from these while there are
different organization are running with different types according to their size, purposes and
objectives. A different organization is having a different legal structure. Such as:

Public sector organization Public sector organization are the organization

that create and form to give better help to the
mass people in the country that running under
the government concern. Public sector
organization is providing different services to
the mass people that cannot be done by private
business. These organizations are running to
make ease of the general people life and
making the goods less expensive and set the
standard living of general people. This is the
sector that generating basic needs of the mass
people in the country (Worthington, 1997)
Legal structure:
This type of business is running under the govt.
supervision. Govt. set the structure and
monitoring the whole process of this
organization. National healthcare service in the
UK is the example of the public sector that
providing medical help to the mass people.
They are only charging the prescription fee
while govt. provides investment for free
medication.
Private sector This sits his type of business owned by private
individual people that can be run as a
partnership business, sole traders or limited
business. This is the most practised business all
over the world. The major target of this
 business to form is to reach a sustainable profit
margin. Owners set the structure as they are
comfortable with.
Some traders are the type of private business
where single owner owns the whole business
and making decision from own for the further
progress of the business
Partnership business is the type of business that
shows more than one owner to own the
business and make a decision for further
progress (Baron, 2012)
Limited business is business that getting
identify under the business name where the
business owns the assets and property. In a
private limited company, there should be at
least 2 shareholders but they cannot trade their
stock in the market publicly.
Voluntary organization The voluntary organization is the kind of
organization that is running with a non-
profitable organization. They are not producing
goods and services directly but there are
serving the benefits to the community. They
are providing services to the economic, social,
educational benefit and run as an independent
organization while they can rely on the other
business for seeking help for their further
activities.
Charitable organization These are the organization that running to give
better helps to the mass people as are running
under the existing law and provide the public
benefits. Most of these organization are
running to reduce poverty, increase the
educational margin of the mass people,
protecting environment etc.

P2 Explain the size and scope of a range of different types of

organizations.
Different organizations are can be described as multidimensional. These changes can be shown
to the business to business. There is a different size and scopes doe’s different business is having.
So, the structure is also different for the different size of business. The capital margin, turnover,
employee margin also vary because of the size and scopes of the different types of business. For
the small business, most business is running under the sole trader's concept and management.
Sometimes, it can be run as the partnership base (Worthington, 2000). For the small business, it
is mostly run with the interpersonal skills of the owners where decision-making process coming
from only the owners. On the other hand, medium size business is giving the potential to
improve the brand image of it. These businesses are running under the proper license and set the
structure and policies for further progress. A large business is also different from eh medium
business as they need to follow the standard business structure. They are mostly having different
branches so they need to make effective coordination between all the branches and identify the
different customer perception to set the products and services to reach goals and objectives.
These businesses are having more scopes to get close to the customer with varying their products
and services ((Worthington and Britton, 2014)

Shines is one of the charity organization in the UK that is offering help to the spine bifida
patients. There is large Market share growth has between shown in recent years for this
organization as it gives more scopes for their wider services. They are selling different products
to arrange more money to help these patients. It shows that recently, one of the shops that are
selling clothes in only 1 pound. They are getting more donations from the different organization
that helps them to run and making help to these individuals. They are also collaborating their
program to the outside in the UK and giving help to different countries vulnerable people.

There is different large business available in the world operating worldwide. Samsung, Apple,
Microsoft, Coca-cola etc are the best example of this large business. Samsung is operating with
the different electronic product while they are having large competition in all over the qword.
This business is giving more focus on the innovation and update of their product that helps them
to stay in the market and beat their competitors. they are working in worldwide. So, they are
following certain structure to make coordination between different countries operation as well as
to identify the need of different regions people to serve the best form them. They are having a
large amount of investment as well as they are having the different franchise to sell and promote
their products worldwide. So, they are having large scopes to increase the sustained profit while
they are running with an immense margin of competitors worldwide (Palmer and Hartley, 2011).

M1 Analyze how the structure, size and scope of different organizations

link to the business objectives and product and services offered by the
organization.
Different business can be segmented according to their size and scopes. Business needs to make
effective engagement with its size and scopes to the structure of the business. Business needs to
identify the need of their customer to serve the best approves to meet this need. Mostly private
business can develop according to their own preferences. There is some standard structure that
available that large business is following but most small business owners set the structure of
these businesses according to their own preferences. They are operating across the international
border. They need to follow different rules and regulations of the export-import business as
international standards.
Public business is running to give better help to the mass people as these organizations are
running under fully the govt. the body that helps to improve the mass people living standards
(Weatherly, 2014).

Logica is one of the large businesses that are having different automotive products and services.
They are giving more concern about the size of the business and making interrelation with the
objectives of the business. It is running under the global concept that they need to monitor and
audit all the external environment of the business to increase the efficiency and advantages of the
business.

P3 Explain the relationship between different organizational functions

and how they link to organizational objectives and structure.
The business sets the process and approaches of them to get a positive outcome from these.
Samsung is operating its business in all over the world. They are having a different department to
make effective coordination with the entire department in different regions in the world. It is
most important to have an effective relationship between the entire department in the business
and making an effective linkage with this department to reach the objectives of the business. All
the organization is margin effective integration with the structure of the business and it also helps
to break down the activities.

Marketing is the function so the business that helps the business to identify the market demand as
it also shows the business products and services to the target customer to reach the further market
of the business. Business needs to ensure their better marketing process and structure as
Samsung is using its strong brand image to promote their products. They are having a strong
marketing department that generates sales for this business as well as it also increases the
customer margin for this business. They need to provide effecting information to the production
of the customer demand margin that helps to reach the goals and objectives of the
business(Lynch, 2006)

Operations or production department plays a vital role to ensure a better quality of the business.
Samsung is giving more priority to the availability of their products and services. They are doing
a continuous update of their products and services that help to meet customer demand. There are
different updated software that uses in the product of this business that helps to get the effective
input and process to get the desired output to meet the demand of the customer. The marketing
department provides the different need of the market so production unit can make ready of the
produce ton the time frame, as well as effective R&D, helps this business to meet the large
customer demand (Hatch, 1997).

Samsung is operating its business worldwide. So, they need to give more focus on their human
resource management. A different country is having a different culture so the customer
preferences are also different. It is important to get efficient employees and make efficient
relation with customers of the business to reach the goals and objectives of it. HRM of Samsung
set the workforce planning as defiant the right skilled people on the right spot. Also, they are
providing a triaging and development program to improve the efficiency of these people. They
are providing a different reward to these employees as it helps to provide motivation to them and
make effective progress of the business to reach the goals and objectives of the business

The finance department is another major department of the business as they are allocating the
money and collecting the fund for further progress. Samsung is operating with large investment
and making effective engagement with all the departments to set the budget and making efficient
control to check their efficiency (Smith and Stewart, 2010)

M2 Analyze the advantages and disadvantages of interrelationships

between organizational functions and the impact that can have upon
organizational structure.
The interrelation between functions of the business that help the business to reach the goals and
objectives of them. This interrelation also highly depends on the influents of the structure and
design of the business. Structure of the business helps to do effective integration to make the
decision-making process for the business. This interrelation helps to provide efficient
diversification of products and service to reach similar objectives of the business. Samsung is
running with a multi-products base on the different electric system. They are giving more
flexibility with their effective functions and structure of the business.

One of the structures is functional departments as it helps them to keep the focus on the special
resources to set the final products of the business. The functional structure also helps them to
reduce the duplication of their electric product and give more facilitation to the strong
communication to all the departments. But one of the major limitations of this structure is the
most narrow perspective business describes by this function (Johnson, 1963).

The matrix structure is the structure that shows interdependencies of all the departments of the
business that help to managed well. It also allows for more effective skills for diversifications
and training. But the difficulties of this structure are to manage the coordination is difficult for
the business.
P4 Identify the positive and negative impacts the macro environment
has upon business operations, supported by specific examples. P5
Conduct internal and external analysis of specific organizations in order
to identify strengths and weaknesses.

SWOT ANALYSIS OF SAMSUNG

 St r en gt h s descr ibe t he fa ct or s t h a t wh ich t h e or ga n iza t ion
is good a t a n d wh a t sepa r a t es it fr om it s com pet it or s.
 –S tro n g B ra n d Im a g e : Sa m su n g h a s a st r on g br a n d
im a ge a n d is t r u st ed by m illion s for it s qu a lit y pr odu ct s.
 –Lo y a l Cu s to m e r B a s e : Sa m su n g h a s it s own follower
ba se wh o wa it n or m a lly sh op for Sa m su n g pr odu ct s on ly be
it sm a r t phon es, a pplia n ces et c. Th ese cu st om er s t r u st t h e
br a n d for it s pr odu ct s an d a r e willin g t o pa y t h e desir ed
a m ou n t t o pu r ch a se t h e pr odu ct .
 — Glo ba l P re s e n c e : Sa m su n g h a s a globa l pr esen ce, it
h a s a st r on g foot h old in Am er ica n, E u r opea n a n d Asia n
m a r ket s.
 –Wid e ra n g e o f P ro d u c t P o rtfo li o: Th er e ar e t h r ee m a in
pr oduct ca t egor ies t h a t Sa m sun g offer s
 H om e Applia n ces


SWOT ANALYSIS OF SAMSUNG

 Sem icon du ct or s
 Con su m er E lect r on ics

 Som et h in g for ever ybody, be it sm a rt ph on es, or

TV or AC et c Sa m su n g h a s a wide r a n ge of
produ ct s t o offer t o it s cust om ers. Th a t ’s n ot it
Sa m su n g br a n d h a s below su bsidia r ies a s well
u n der it s u m br ella :
SWOT ANALYSIS OF SAMSUNG
 WEAKNES S:
 We a k n e s s e s st op a n or ga n iza t ion fr om per for m in g a t it s
opt im u m level. Th ey a r e a r ea s wh er e t h e busin ess n eeds t o
im pr ove t o r em ain com pet it ive:
 –Hig h Di ve rs e P o rtfo lio : H a ving a pr odu ct por t folio a s
big as Sa m sun g’s is m or e a ba n e t h a n a boon .
 THREATS:
 Th re a ts r efer t o fa ct or s t h a t h a ve t h e pot en t ia l t o h ar m a n
or ga niza t ion in t h e fu t u r e. Given t h e fa ct , t h r ea t s give a
br a n d a fa r -sigh t ed view a bout t h e pr oblem s t h a t t h e br a n d
is likely t o fa ce in t he fu t u r e, it is on e of t h e m ost im por t a n t
fa ct or s in t h e SWOT An a lysis of Sa m su ng.
 — Em e rge n c e a n d Gro w th o f Ch in e s e pla y e rs like
OP P O a n d Viv o: Sa m su n g wh ich on ce con sider ed In dia
a s a h igh pot en t ia l m a r ket h a s n ow st a r t ed t o lose it s
st r on gh old, a ll t ha n ks t o t he en t r y of n ew Ch in ese pla yer s
like OP P O a n d Vivo.

SWOT ANALYSIS OF SAMSUNG

 OP P ORTU N ITIES :
 Oppor t u n it ies r efer t o t h e fa ct or s wh ich t h e
or ga n iza t ion ca n u se t o it s fa vor t o gr ow it s m a r ket
sh a r e, sa les, br a n d r ecogn it ion et c. It ’s t h e secon d
m ost im por t a n t fa ct or in SWOT An a lysis of Sa m su n g
a s it will sh a pe t h e fu t u r e of t h e com pa n y’s st r a t egy.
 –Ex p a n d in g to n e w Ge o g ra p h ie s : Sa m su n g fa ces
com pet it ion fr om Apple in US m a r k et a n d t ou gh
com pet it ion fr om OP P O a nd Vivo in Ch in ese a n d
In dia n m a r ket s. The biggest oppor t u n it y t h a t
Sa m su n g cu r r en t ly h a s is t o expa n d t o u n ch a r t er ed
geogr a ph ies, expa n d t o n ew m a r k et s a ggr essively.
 –In v e s t h e a v ily in Re s e a rc h a n d D e v e lo p m e n t
P E STLE ANALYSIS OF SAMSUNG
 P o litic a l e n v iro n m e n t
 Looking a t t h e polit ica l en vir on m ent , h ow t h e
im pa ct of polit ics a ffect in g Sa m su ng globa lly, As
m u ch a s Sa m su n g is a good com pa n y n ot
ever ybody see like t h a t , du e t o t he st r ong
com pet it ion bet ween Apple a n d Sa m su ng it
en ded u p in volvin g gover n m en t in ot h er
coun t r ies.
 Ec o n o m ic e n v iron m e n t
 Sa m su n g h a s expa n ded it s busin ess t o m ore t h a n
58 cou nt r ies. Sa m su n g m ost ly t h ey in vest h ea vily
t o t h e in fr a st r u ct u r e in ea ch en d ever y cou n t ry
t h ey h a ve a bu sin ess in .

P E STLE ANALYSIS OF SAMSUNG

 S o c ia l fa c tors :
 Sa m su n g fin d t h a t ga ps t o im pr ovin g people’s lives.
Th e ch a llen ge is t h a t m a n y people do n ot kn ow h ow t o
u se Sam su n g pr odu ct s in a pr oper wa y especia lly
t h ese n ew t a blet ph on es. P eople st ea l n eed t o be
educa t ed on h ow t o u se t h ese t a blet s ph on e t h a t is a
ch a llen ge of our societ ies.\
 Te c h n o lo g y fa c to rs :
 Sa m su n g fin d a wa y of t a ke a bu sin ess ou t of t h e
bu ildin g st r u ct u r e t o t he pocket . By in t r odu cin g
Ga la xy Not e 2 is m or e t a blet like t h a n ph on e lik e, it
m ea n t h a t you ca n do you wor k in t h e pu blic
t r a n spor t , in t h e r est a u r a n t s, a nywh er e, wit h ou t
fillin g in t er m edia t ed of ca r r yin g big m a ch in e.
P6 Explain how strengths and weaknesses interrelate with external
macro factors.
There are different strength does Samsung is having. They are having a strong distributional
channel that helps them to runt eh strong network in the market to ensure the customer needs
within the time frame for the potential growth of the business. They are also having a strong cash
flow of the business that helps them to expand the business for the new project. they are also
having an effective marketing strategy to identify the demand of the market and set the effective
growth of the business. They are using a strong brand image and portfolio to make market
growth. They are running efficient customer satisfaction programs and also having efficient
dealer community management (Wrigley, 1970).

There are some limitations as weaknesses does this business is having as the structure of this
business is mostly computable to the present business model but the high competition arises in
the market. So, the changes in the market also need to compatible with this business so they
should work effectively to update their structure and make further growth of the business.

Pestle analysis:

Samsung is an electronic product based business that needs to run under the different legal issues
from the different govt. so, govt. rules and regulation play a major role in the decision-making
process of the business. Political instability makes suffer for this business in the different region
as the tax margin changes and rates make an impact on the further progress of the business.

Economic stability increases the capacity of customers. Samsung is running as the leader of the
Android smartphones industry but still, they are facing difficulties in the countries where
economic instability is approaching. It causes a lack of capacity of customers to buy new
products while much local business tries to capture this market that makes the tough competition
(Chandler, 1962).

There are different social factors as increases of the lifestyle gives more chance for Samsung to
update their smart phone and making further run of the business. There are some lacking does
this business is having as mostly Google phones are getting the latest Android update
immediately than Samsung. It makes an impact on the customer satisfaction process of this
business

Technology development is the base form for this business to make further growth as they are
giving more priority to the R&D to improve their products and services to reach goals and
objectives of the business (Kieshea, 2019).

Conclusion:
After the brief discussion, there are different analysis takes place to identify the importance of a
positive business environment in the business. There are different internal and external factors
that are having an impact on the business environment. All these factors need to monitor by the
business and making effective relationships between all the functions and department to reach
the goals and objectives of the business.

References:
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 PALMER, A. and HARTLEY, B. (2011) The Business Environment. 7th Ed.
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Environment: Themes and Issues in a Globalised World. 3rd Ed. Oxford: Oxford
University Press.
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school
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