Unit 1- Business and Business Environment

Contents
Introduction ..................................................................................................................................... 3

Task 1 .............................................................................................................................................. 4

P1 Explaining the different types and purposes of organisations; public, private and voluntary
sectors and legal structures. ........................................................................................................ 4

P2 Explaining the size and scope of a range of different types of organisations........................ 6

M1 Analysing how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation. .............................................. 8

P3 Explaining the relationship between different organisational functions and how they link to
organisational objectives and structure. ...................................................................................... 9

M2 Analyse the advantages and disadvantages of interrelationships between organisational

functions and the impact that can have upon organisational structure ..................................... 11

Task 2 ............................................................................................................................................ 11

P4 Identification of the positive and negative impacts the macro environment has upon business
operations of Dyson .................................................................................................................. 11

M3 Apply appropriately the PESTLE model to support a detailed analysis of the macro
environment within an organisation.......................................................................................... 14

P5 Conducting internal and external analysis of Dyson in order to identify strengths and
weaknesses. ............................................................................................................................... 14

P6 Explaining how strengths and weaknesses interrelate with external macro factors. ........... 16

M4 Application of SWOT/TOWS appropriately analysis and justify how they influence

decision-making. ....................................................................................................................... 17

Conclusion .................................................................................................................................... 18

References ..................................................................................................................................... 19
Introduction
Business is a combination of some activities that are performed to gain profit by making the best
use of the resources available with the production of service and goods. One of the important tasks
in analysing business and business environment is to know about the size and the purpose of any
business (Worthington, Britton and Thompson, 2018). As a trainee business analyst in the North
London chamber of commerce and enterprise, I will analyse the size and scope of the various
range of organisations along with the analysis of the link between different organisational
structures and how the different structures of the organisation affect the organisational objectives
and the structure. For the basis of the report, Dyson UK as a privately owned company and
Glencore as the publicly listed company will be focused. The analysis of the business environment
will be done by accomplishing the external and internal environment analysis. The positive and
the negative impact of the macro environment will also be analysed in this report this analysis will
be accelerated by the detailed evaluation of the strengths and weakness of the selected firms.
Finally, the report will be completed with the identification of the interrelation of the strengths and
weakness with the external macro factors.
Task 1
P1 Explaining the different types and purposes of organisations; public, private
and voluntary sectors and legal structures.
The organisation can be defined as the entity which is formed to perform specific types of task for
business or non-business purpose (Dicksee, 2018). The category of any organisation can vary due
to the diversified and various purposes the organisations hold. So the types of an organisation
depend much more on the objectives and the aims an organisation hold. And the types of
organisation can affect the size and ownership of any organisation. So, according to the varieties
of the objectives of an organisation and according to the ownership structures the organisations
can be classified into some categories those are described below:

Public Organisation

Public organisations refer to the type of organisation which are owned by the public body and the
control of the organisation lie to the government of any state. The funding and the operating
authority of that organisation are levied on the government of the states in which the organisation
is operating (Dicksee, 2018). The purpose of that type of organisation is to serve the public in
terms of doing welfare to the public. The public organisations are formed mainly for public
development and run with the public fund i.e the tax revenue collected from the public. The
development of any country like infrastructure, education, transportation and other sectors for
development is run and operated by the public organisation. For example, we can say about the
state-owned bank of UK. Which is serving the public development with public financing.

Private Organisation

The private organisation refers to the organisation which are privately owned and run by private
or individual effort to earn individual and private interest. The motive of private organisation
differs from the public organisation (Edwards and Townsend, 2011). The main purpose of
establishing a private organisation is to earn profit earning. During the operations, the private firms
and organisation have to follow government rules and regulation. The private organisations are
formed and operated by a group of people or by the individual. For example, we can say that Dyson
is a private organisation in the UK.
Voluntary Organisation

Voluntary organisations are the organisations which are formed for voluntary wellbeing if the
society. The purpose of Voluntary Organisations is not to gain profit rather it works for the welfare
of any states with the assurance of a group of people(Edwards and Townsend, 2011)... UNICEF is
an example of a worldwide voluntary organisation.

The legal structure defines the business classification as follow as;

Sole traders

Sole traders are the form of business organisation where the owner and director or the controller
is an individual. The main characteristic of this type of business is that the business is established
for earning a profit by the owner (Edwards and Townsend, 2011). The profit or loss and all the
liabilities created for this business purpose have to be taken by the owner only. Normally the sole
traders are small in business size and cover very small scope for business and can’t be widely
spread because of the limitation of the capital, and individual capacity.

Partnership organisation

Partnership organisation is the form of organisation where 2 or more than 2 but not more than 20
people form a business jointly for gaining profit. This type of business is formed based on a legal
contract and the profit/loss and the responsibilities along with the relevant risks are distributed as
per the agreement.

Corporation

The most modern types of business are the corporation where more than 7 people along with the
issuing shares to the public form a business organisation to earn the profit and to operate a business
on a large scale.

Co-Operative Organisation

To protect the rights and to have unity among the lower and idle class people, an association is
formed which is known as the cooperative organisation. This type of organisation has a major aim
to protect the interest of the members of the association by availing equal rights in consuming and
selling goods and service with an eligible price.
P2 Explaining the size and scope of a range of different types of organisations.
The organisation can be classified into the following categories according to the classification by
size:

a) Micro Organisation
b) Small Organisation
c) Medium Organisation
d) Large Organisation

The explanation regarding the various size and scope of the mentioned classification of the
organisation is presented in the following table;

Basis for Micro Small Medium Large

explanation
Employee Size Not more than 10 Not More than Not exceeding Having More than
50 employee 250 employee 250 employees
Yearly Equal or less than 10 million or 50 million Exceeding 1.5 billion
Turnover 2 million less than it (Glew, Watts and
Wells, 2013)
Major Earning Profit Earning profit Expanding Maximizing the
objectives and along with job with high business with shareholder’s wealth
Goals satisfaction and competition for maximizing through value
flexibility to sustaining with profit along addition with
work with a quality products with sustainable
small and service increasing the performance.
investment. market
acceptance
Example Small Sole Lifestyle Partnership Public corporations
traders such as products selling organisations like Glencore,
the retailing firms, Clothing such as the Amazon, google etc.
shop, Dry and retailing bakery shops
firms. etc and
 cleaning shop Restaurant
etc. etc.
Figure 1Difference in factors of Business of different size (Source: (Glew, Watts and Wells, 2013)

The organisations can be classified according to ownership sharing. The classification is as follow
as:

a) Franchising
b) Licensing
c) Joint Venture

The explanation of the different types of organisation of various size, the scope is depicted in the
table below:

Basis for Explanation Franchising Licensing Joint Venture

Definition The agreement The agreement The agreement where

between franchisee between two or more two firms get
and franchisor for the companies to have the associated with
right of using the rights of doing the achieving a specific
intellectual properties main business parent organisational goal
of the parent by the license holder. unitedly.
company.
Regulated By Company and Contract Law Company Act
Franchising Act
Enrollment in Obligatory Not obligatory but To Obligatory
Company Registrar avoid the legal
problems it is safe to
be registered.
Control Franchisor Has The license provider Both parties Hold
supreme control has no control over equal Control
(Siegel, 2010). the operation of the
license holder.
 Potential Risk Comparatively low Somewhat Risky Risk is divided
risky
Figure 2 Factors Differentiating Various Types of Organisation (Source: Siegel, 2010 )

The difference among the chosen organisation for the completion of the report is as follow as:

Point of discussion Dyson Glencore

Identification It is a British Private It is an Anglo British
technology Company Multinational publicly listed
established in 1991. company that trades
commodity.
Capacity Medium In size and capacity Very Large and Has Huge
capacity.
Industry Technology/ Home Commodity Trading
appliances
Nature of Business Manufacturing and trading Retailing
Scope Home appliances Multinational Commodity
manufacturing in the UK Trading.
Area of Operation National borders Internationally Operated
Figure 3 Differentiation between Dyson and Glemcore (Source: )

M1 Analysing how the structure, size and scope of different organisations link
to the business objectives and product and services offered by the organisation.
The size, scope and the structure of an organisation directly affect the business objective by
affecting the way of doing business by assessing the area of functions. The size of Business directly
affects the organisational scope. This is because the size of Dyson does not allows it to operate
multi-nationally but if it was large in size it could extend the operation in various regions and
states. Apart from this, the scope of a firm Like Dyson affects the mission and objectives.
Definitely, the objectives of large multinational trader like Glencore will not be as same as the
Dyson. The way of operations and the management structure affect the range and nature of the
product or service a firm is offering.
P3 Explaining the relationship between different organisational functions and
how they link to organisational objectives and structure.
Organisational Function is the activities which are performed to accomplish the business activities
for gaining the organisational goal for the business entities (Bloisi, Cook and Hunsaker, 2007).
The size and the scope of the different types of organisations will be explained based on the case
of Dyson, a private organisation. The functional organisational structure of Dyson is given in the
following figure:

Figure 4 Functional organisational Structure of Dyson

(Source: dyson.com.uk, 2019) Commented [A1]: Brother, graph title and source gula
evabe dile valo hoy. Shift+Enter chapte hoy borabor nicher
The relation of significant organisational functions of Dyson and the objectives of the organisation line e chole jabe. Ekhane kisu korte hobe na. Just future r
jonno bollam.
is described in the following sections:

Marketing

Dyson is a privately held technological organisation which manufactures the home appliances in
the UK. The firm produces new and updated home appliances associated with the new technology.
It manufactures the Vacuum cleaner with the latest technology and other home appliances. The
marketing functions of this company are performed through segmentation into various steps. In
the first step, it analyses the market and in the following step, it enters the market with the desired
products to meet the customer design with satisfaction.
Financing

Dyson as a manufacturer and trader of home appliances along with the latest technology perform
financing with the most practical feasibility analysis and collect the required fund from the most
eligible sources. The investment of the company comes from the stakeholders and the financial
institution. As the performance of the company is up to mark the debt collection from the banks
and the NBFIs come easily. Dyson analyse the investment project and then they finance their each
and every diversified project i.e. product initiation

Human Resource Management

Dyson manages the Human resource and the employees of their organisation with a continuous
basis. The management of the firm is run through Participative management in the middle and the
lower level of management. The rewarding and performance appraisal for the employees are
accomplished on a regular basis.

Operational functions and their links to the goals and objectives

Dyson as a private technology-based Home Appliance Company has been successful in managing
all the functional department of it with the most feasible manner. The firm is strategic in every
segment and division in their managerial operations. Their operational division includes strategic
planning and implementation in executing the new project and dealing with the existing operations
(Spriegel and Davies, 2009).

All the operational divisions of Dyson is interrelated to attain the organisational goal of the firm.
Though the nature of the work of each division varies their main objective is to meet the
organisational aim. The objective of the firm is to facilitate high-end technology assisted product
to the customers for the creation of superior value. So the manufacturing department works in
association with the Marketing, HRM and Finance function to have proper integration to approach
the mission through gaining short term objectives. The marketing functions of Dyson is directly
related to the manufacturing department by assisting the manufacturing department with proper
information regarding the desired product and utility. And the HRM functions are also related to
the overall organisational function and performance.
M2 Analyse the advantages and disadvantages of interrelationships between
organisational functions and the impact that can have upon the organisational
structure
There are mentionable and significant advantages and disadvantages of the interrelation between
the organisational functions and the goals of a firm (Spriegel and Davies, 2009). In the case of
Dyson, the advantage is that the proper market assessment as a marketing function can cause an
exact and proper estimation of the product design and the estimated demand with which the
production goes on. But on the other hand there also a disadvantage of the interrelationship that is
if any functions changes then the other functions also affected for which the organisational
function changes which can negatively affect the goal of the firm. The changes in the interlinked
functions can also cause to change in the organisational structure by affecting the functional
department of Dyson. Commented [A2]: Brother, ekhane kisu words add kore
dao. Dekhte inconsistent lagse.
Impacct upon org structure ti arektu likha uchit mone
hocche.
Task 2
P4 Identification of the positive and negative impacts the macro environment
has upon business operations of Dyson
The macro environment in a simple word can be illustrated as the whole surroundings within which
an organisation operates its activities. The effect of macroeconomic factors is significant in
influencing the operation, management and survival of any organisation (Baron, 2013). For a
proper understanding of the macroeconomic factors effect on the business operation of Dyson,
PESTEL framework can be used and applied.
 Figure 5 PESTEL framework (Source: Baron, 2013) Commented [A3]: Brother, ei chart ta aktu change kore
dao. Ei chart ta onek bar ei college e submitted hoice. So,
Political Environment better change kore dao.

Dyson operates in the UK so the political environment as a whole affects the business functions
and operation of Dyson. The recent change in the economic policy has an impact on the overall
operation of the company. The Brexit can be the best example of a political impact on the operation
of the business function of Dyson. The Brexit has caused to upward shift in the tax structure which
is a significant barrier for the small industry. Dyson, in this case, has been negatively affected by
the increased tax rate along with other economic changes. The exemption in tax, the special
advantage in operating the business in a remote area can cause a significant positive effect on the
business performance of Dyson.

Economic Environment

The recent recession in the UK economy affected the operations of Dyson. Because of sudden
economic change i.e. interest rate structure, tax structure and the monetary policy change has
caused a significant instability in the financial performance of all the existing small and medium
industry mainly (Business environment, 2009).
Social Environment

Social forces also significantly affect the operation and the management of any business
organisation. Dyson, in this case, is also being affected by the social forces of the UK by being
affected with the constant change in the pattern of demand of the consumers because of the
technological change. So these factors affect the operation of Dyson little negatively.

Technological Environment

Technology affects the performance and the operation of Dyson. Because the company is a
technology-based Home appliance manufacturer. So change in the technology can significantly
harm the operation and can cause the firm into a huge risk. The new invention and the changed in
the pattern of consumer behaviour due to change in the technology facilitated the company by
having updated products which are being accepted cordially by the consumers. But there is a
significant disadvantage of the technology that is the developed product of today can be obsolete
the day after tomorrow.

Environment effect

The overall natural environment of the UK affect the business of the Dyson, because of the effect
of the surrounding can change or shift the operation of the company including the manufacturing
and marketing and the distribution of the products and the way of doing all operations.

Legal Environment

The changes in the structure of law and regulation in any state affect the business organisation of
that state (Meiners, Ringleb and Edwards, 2018). So the Operations and the management of Dyson
is affected by the change of the laws and order of the UK. The recent Brexit has caused a shift in
the change in the tax regulation and in the economic shift in various factors according to the legal
structure of the UK. So the legal structures have caused some disadvantage for the Dyson and it
can make betterment by easing the operational and legal freedom in economic and management of
Dyson.
M3 Apply appropriately the PESTLE model to support a detailed analysis of
the macro environment within an organisation.
Dyson was influenced by the political environment with the change in the economy by Brexit and
this was conventionally done by the political change in that country. This change in the country
has also caused an economic change with the shift in the interest rate structure and the monetary
policy was indirectly affected. This change has made a negative effect on the operation of Dyson.
Apart from this, the change in the technological pattern has indirectly caused a significant effect
on the production function of the firm. To summarise the overall business functions of Dyson is
being constantly affected by the Political, economic, social, technological and environmental
factors significantly which were shown in the above discussion.

P5 Conducting internal and external analysis of Dyson in order to identify

strengths and weaknesses.
The analysis of the internal and external analysis can be performed by the help of established
SWOT analysis in any organisational perspective. So the SWOT analysis can be used as the tools
of analysing the strength and the weakness of Dyson (Campling, 2008). The overall performance
can be evaluated by the through micro, macro and SWOT analysis for any company, these analysis
has been run to evaluate the strength and weakness of Dyson. From the following graph from
below we can get the idea about the analysis:

Figure 6 Analysis to find strength and Weakness (Source: Self-Creation)

The observation of SWOT analysis in the case of Dyson is as follow as:

Strength

Dyson is a successful tech-based home appliance manufacturer because of some strategic strength
and capacity of the company. Among all the strength of the company, the observed internal
strength is that the firm provides after sale repairing and monitoring service to the sold appliance.
Even the replacement and updating opportunity of manual and automatic operation of appliances
are provided by the firm. This has facilitated the company to be a strategic leader in the appliance
industry.

Weakness

From the observation of the operation of Dyson, one significant weakness has been found. That
is the increasing R&D cost of the firm is making the company a lower profit earning for a few
days. This is because of the increasing cost of research and innovation is making the overall cost
high and this affects the pricing of the product.

Opportunities

While observing the operations and the market of the Home appliance, a significant and potential
opportunity for Dyson has been found. That is to be a broad differentiator. The minimum cost and
the high-quality product will be accepted in the UK market which will make the firm to be one of
the top appliance seller and distributor.

Threats

The observation of the operations of the Dyson has enabled me to identify a significant systematic
business risk. The risk is the inappropriate market positioning of new technology and the
possibility of the trending technology to be obsolete. The technology assisted appliance can be
obsolete due to the rapid change in technology and trend overnight.
P6 Explaining how strengths and weaknesses interrelate with external macro
factors.
In the previous section of the report, the strength and weakness were analysed with the help of
SWOT. So we already know the strength and weakness of Dyson. The interrelation of the strength
and weakness with the macro factors can be evaluated.

The evaluation of the interrelation of the macro factors with the strengths and the weakness

As we have seen one of the internal strength of the Dyson is in the operational sector of after-sale
service of the old appliances. This strength has made the firm strategically strong by increasing
the customer base and the reputation of the firm by adding more and more reputation (Environment
& business, 2013). So the strength of the Dyson will affect the social and the technological
environment positively. Apart from this technological update in the product after the sale will
enable the firm to positively affect the technology. This is because the change in technology will
not be able to change or negatively affect sales. So the strength of Dyson has made possible to
overcome any technological ups and downs. Apart from this, the strength of the company will help
it in taking the shock of the economy by creating a financial back up for the company with excess
capacity in the peak sales period.

The weakness, on the other hand, is also correlated with the macro factors like a social and overall
business environment. The significant weakness is found in the business operation of Dyson which
is negatively related to the mass sales. The weakness is the high-cost pressure of R&D has made
a negative pull in the margin of each product. So the weakness can be negatively related to the
social factors like the tendency of low priced consumption and the overall business can be affected
by the low profit and the low profit does not allow the firm to motivate the employee with proper
rewards in the long run. So the weakness in the business operation of Dyson is related to the macro
factors.

To be specific both the strength and the weakness is related to the macro factors affecting the
industry and the business itself (Worthington, Britton and Thompson, 2018). The correlation
among the macro factors and the strength & weakness factors is to be taken under consideration
while analysing the business and the business environment.
M4 Application of SWOT/TOWS appropriately analysis and justify how they
influence decision-making.
The interrelation among the strength and weakness factors with the macro factors affect the
decision making by influencing either positively or negatively. The strength on one side is
affecting the macro factors positively. So the decision of the managers of Dyson will be positively
motivated to have the strength and strategic resources to fit the competition and emerging
challenging situation. The weakness and the threats will despair the decision makers by pulling
back from the weakness. As the macro factors are not easy to manage so the challenges and the
risks arising from the macro factors must be managed by the strength and the strategic resources.
Conclusion
The business and the environmental analysis is one of the significant issues to analyse and make a
decision regarding business and operation. The size and structures are completely different from
each other. The different size and the different structure of the business organisation have a
distinctive effect on the business operation and the scope of business operation. Apart from the
scope the management and the ownership is significantly affected by the variety of Business
organisation in terms of the ownership, capacity and area of operation. The analysis of the factors
affecting the business has shown us that the political, economic, social, technological and
environmental factors affect the business operation of the business. The strength and the weakness
of the business operation of Dyson were evaluated by the PESTEL framework. Finally, the
evaluation of the correlation of the strength and weakness of the Dyson with the macro factors was
completed and this has shown the effect of these factors in decision making.
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