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Unit 1 Business and the Business Environment Assignment
In the present business environment there is effective contribution of different internal and external environment and its factors making impact on the overall performance of the organisation. This report will define various important aspects related to the macro and micro factors and their impact on the strengths and weaknesses of the company. Strategic decisions are also impacted by this.
This presentation will define various aspects related to the difference between organisations of different types. There is effective explanation of difference of their structure, objectives, purpose, size and scope, products and services, organisational values etc. River Island fashion Company is a profit generating company which is having huge number of stores in different countries around the globe and having objectives to achieve profits by providing effective products considering all the internal and external factors of the company. In the health and safety services there is effective role of National Health Services which are providing its services in UK and other states of different countries which make impact on the overall effectiveness of the life of health and social care service users in the country. There are various types of organisations and profit making and non-profit making are also two types of organisations. There are different types of operations which are run by both the organisations. There are differences in the purposes of both the companies that make impact on the operations of the companies. Size of the organisation defines the level of operations of the company which can make define the effectiveness of the company. A multinational company have huge level of operations which can make impact on its productivity and there is high scope to expand more and to diverse. Non-profit making company can expand the range and number of customers for providing health and social care services. Different type of organisations offers different products and services. River Island is offering its products which are produced by the company in its production process and NHS is providing different services to the customers. There are various types of organisational structure which differentiates in different types or organisations and this make impact on the overall activities of the organisation. Business objectives are the ultimate goal for the company which are required to be achieved in the organisation by its operations. Business values are included in the overall execution of the activities in every type of organisation. There is effective utilisation of the business values in profit making and non-profit making company. This presentation concludes that there is effective difference between different types of organisation but there exist internal link which make impact on overall effectiveness of the organisation. Profit making and non-profit making company differentiates on the basis of the structure, size, purpose and objectives.
River IslandFashion Company is a multinational company dealing in merchandise headquartered in London and is a high street brand which is operating in different countries around the globe and has over 250 stores in UK, Ireland, and Middle East. The company was started in 1948 by Bernard Lewis and his brother.
- The company is providing services and clothing merchandise and following are the functions of the company (CARROLL, ET. Al 2011).
- Company is managing effective production process of variety of products which can lead to effective results and profitability.
- Company is adopting various functions related to providing effective customer care services in the organisation to satisfy them(CARROLL, ET. Al 2011).
- Analysing the environment to identifying the requirements of customers and other factors making impact on the overall performance of the company.
- Effective management functions are included in the process that can lead to effective execution of activities.
- The main objective of the company to provide effective services to the customers by analysing their demands and requirements which can be done by analysing internal and external environment(CARROLL, ET. Al 2011).
- To expand the business activities of the company in different organisation that can make impact on the various aspects like effective brand positioning and increased revenue of the company.
- Thecompany want to enhance its production process to expand its product range that can make impact on the overall customer satisfaction of the company.
- To enhance quality of the products in effective manner by managing cost and time of the production process that can make impact on the profitability of the company.
- To provide effective after sales services to customers that can enhance level of customer satisfaction that can lead to increase in the customer retention and their loyalty in the organisation.
- To manage alllegal and regulatory requirements within organisation that can make impact on overall performance of the organisation.
Interrelationship between the organisational functions and organisational objectives:
In the River Island Fashion Company there is effective control over activities that can make impact on the overall performance of the company. The objectives of the company help in effective management of the organisational functions of the company that influences organisational structure of the company. River Island is making efforts to achieve effective brand positioning by expanding its business operations and achieving organisational goals in the organisation (Jacob, 2013). This also considers different aspects related to the macro environment and its factors.
Section 1: Positive and negative impacts of macro environment on the business operations
There are included various factors which make negative and positive impact on the overall performance of the organisation. Positive and negative impact of macro environment on the business operations can be understood as follows
Political- The positive impact of political environment is it helps in identifying required government regulations and provides stability to the business. In case of the River Island Fashion Company headquartered in London and is a high street fashion brand and political environment of the country is supporting to the export and import for the company and to expand its business around the globe(Jacob, 2013). Negative impact is facing by the company the inconsistency.
Economic- In every business there is effective impact on the economy of the country which can make impact on overall results. Positive impact on the economic environment is making impact on the profitability and effective spending power of the customers. The negative impact on the business of River Island of economic environment is the economic slowdown faced by the company(Jacob, 2013).
Socio–cultural- In the organisation there are various aspects that can make impact on the overall effectiveness that can help in the overall effectiveness of the organisation. In the company River Island is a fashion brand which is taking positive impact of the socio culture environment that is making impact on the increased diversity of the products in the organisation. Negative impact of the socio culture is to rigidness to accept change in the behaviour.
Technological- Positive impact of the technological environment is to adopt new technologies that can improve performance of the organisation and can effect of productivity of the company. Negative impact on the organisation is the increased cost and complexity in the operations.
Environmental- River Island is a fashion brand which is influenced with changes in the environmental conditions and positive impact of the environment is the seasonal changes which make impact on the demand of the products (Jenerette, et. Al 2016). Negative impact on the operations of environment is unavailability or lack of resources in the organisation that can make impact on the overall business operations.
Legal- There is required to follow various legal and regulatory requirements for effective running of business. Positive impact of these factors that it helps in reducing any kind of inconsistency in organisation and provides stability. Negative impact of legal obligations is it makesimpact on cost and also time consuming.
Ethical impact- There is required to consider various ethical aspects in the organisation that can make positive impact on the customer services and their effectiveness and can help in effective customer satisfaction. Negative impact is it requires effective control and trainings(Jenerette, et. Al 2016).
Section 2: Conduct an internal and external analysis to identify its core strengths and weaknesses.
For the purpose of internal and external environment and identifying core strengths and weaknesses for the purpose we will do SWOT analysis. SWOT can be defined as Strength, Weaknesses, opportunities and threats that can identified and advantages can be taken from them. Swot is effective to analyse the external and internal environment of the company which can make impact on the overall effectiveness and can help in effective planning of activities in the organisation. Following is the SWOT analysis of the company River Island Fashion Company.
Strength- Strengths are the internal abilities which make impact on improving the performance of organisation. Following are the strengths of the River Island.
- The company is having largest flagship store on the Oxford Street having large window space that can help in handling more customers in the company.
- The services providing by the company in its stores are attracting more customers and more foot fall. There are also providing effective range of Women wear, Menswear and kids wear range making impact in the effectiveness of the services providing by company to its customers (Pandey, 2013).
- The human resource of the company is effective and making impact on the customer satisfaction that can be achieved by providing effective great feel to them that can make impact and increase in the customers in the company.
- There is celebrity endorser in the company and events are arranging in the company.
Weaknesses- Following are the weaknesses of the company River Island-
- There are seasonal outlets of the company which are limited to some specified time period that can make impact on profitability of the company.
- There is lack of effectiveness of showroom space and display of products.
- There is limited product blocking in the company.
Opportunities- Following are the opportunities which can be develop as effective plan by the company.
- There are opportunitiesto bring more products range in the company to meet requirement of the customers(Pandey, 2013).
- The company should work on the effective management and development of the brand image of the company.
- Threats- Threats for the company River Island are as follows-
- The company is having threat of its competitors in this competitive environment.
- There is threat to miss the sale opportunities which can be generated in the peak trading hours of the company.
- There is threat of lack of management of the different stores in the organization(Pandey, 2013).
Section 3: Explain how these strengths and weaknesses are linked to the external macro factors.
PESTEL analysis will show the link between the strengths and weaknesses with the external macro factors in the River Island Fashion Company which is defined as follows.
Government policies and different aspects are making impact on the effectiveness of the management of different stores of the company overseas (Uzonwanne, 2015).
Economy of the country and its effectiveness is making impact on the overall profitability of the company by increasing the purchasing power of the customers.
Social factors are the demands of the customers which must be considered in the operations of the organisation to achieve effective growth of the company.
Technological factors helping organisation to modify its production process and effective execution of activities that can satisfy customers in effective manner.
Company is liable to consider all the requirement of environmental issues which make activities more effective.
There must be considering all the legal and regulatory requirements which can help in achieving effectiveness in activities(Uzonwanne, 2015).
In the present business scenario there is effective influence of political environment of the country which can make impact on the overall execution of activities. There are included all the regulatory requirements of government that are required to be considered.Macro environment is the external environment which influences overall execution of organisational performances that can make impact on overall performance of organisation.Internal and external environment is defined as macro and micro environment which can help in analysing strengths, weaknesses, opportunities and threats that can make impact on the overall effectiveness of the organisation (Weatherly, et. Al 2014). There are defined various factors which are included in this performance of the organisation that can make impact on the overall effectiveness of the organisation. Internal and external analysis defines positive and negative impact of these factors and can help in identifying the strengths and weaknesses in organisation. In the macro factors there are included all the external aspects like government policies, regulations and rules, political, legal, environmental, social and economicfactors which are required to be considered while taking any kind of decision in effective way. The internal structure of the company is influenced with the external factors which are essential to be considered in the organisation that can make impact on the overall effectiveness of the organisation(Weatherley, et. Al 2014).
In the process of strategic management in the organisation there is required to take effective and strategic decisions which can be taken after analysing available factors and aspects that can make impact on the overall performance of the company. Every organisation effectively analyse its business environment which is combination of internal and external environment and includes different aspects that make impact on overall performance of the organisation. This analysis can be done by adopting and using different models of analysis and make impact on the overall effectiveness of the organisation. SWOT, PESTEL, Porter’s five forces model iseffective techniques to analysing business environmentthat can evaluate the performance in effective manner.
River Island Fashion Company is a clothing brand of London which is providing its services on huge level in different countries around the globe and positioned as an effective brand. This multinational company has effective impact of its internal and external environment and macro factors which are essential to be considered by the company to run business in effective manner. The company is affected by various macro factors which are making positive and negative impact on its operations and are also connected with the strengths, weaknesses of the company and also defining various opportunities and threats which are required to be effectively managed by the company. This is a profit making company so it is required to analyse all important aspects that can make impact on the overall productivity of the company and can help in achieving organisational goals in the company. To manage these factors there are adopted effective planning and management process by which effective decisions can be taken after effective analysis and policies and procedures and code of conduct can be prepared in the company which is required to be followed in its activities. So it can conclude that there is effective role of macro environment in profits manking companies (Worthington, 2014).
Jacob, W. 2013, "Economic and Business Environment", Vision: The Journal of Business Perspective, vol. 17, no. 1, pp. 87-89.
Jenerette, G.D., Harlan, S.L., Buyantuev, A., Stefanov, W.L., Declet-Barreto, J., Ruddell, B.L., Myint, S.W., Kaplan, S. & Li, X. 2016, "Micro-scale urban surface temperatures are related to land-cover features and residential heat related health impacts in Phoenix, AZ USA", Landscape Ecology, vol. 31, no. 4, pp. 745-760.
Pandey, A. 2013, "Economic and Business Environment", Vision: The Journal of Business Perspective, vol. 17, no. 1, pp. 85-87.
Uzonwanne, F. 2015, "Leadership styles and decision?making models among corporate leaders in non?profit organizations in North America", Journal of Public Affairs, vol. 15, no. 3, pp. 287-299.
Weatherley, P. & Otter, D. 2014, “The Business Environment: Themes and Issues in a Globalised World”, Oxford: Oxford University Press, 3rd Ed.