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UNIT 1 L/508/0485(RQF) Business and the Business Environment


The business environment is the condition of the business by which organization perform different types of functions in proper manner. Environment of the any business firms plays a significant role in order to maintain the effectiveness in performing different types of activities in stipulated time period (Charter, 2017). The environment of the organisation depends upon the nature and size of the organisation. There are two different types of factors that influence the environment of the organisation.

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The two factors are like external factor and internal factor which affect the performance of the employee working in the organisation and also. Reduce the performance of the company accordingly. External factor is related with the political, economical, social, technological, legal, and environmental which give positive or negative impact on the organization. Unilever Plc is the multinational company which deals to provide different types of foods, fruits and cleaning agents and much another service to its loyal customer.

Task 2

The interrelation between different organizational departments and their link to objectives

The company can attain its growth and success by the help of various department working in the organisation. It is very essential for the company to determine the importance of interrelation between the activities of various department like human resource, marketing, finance, operational and many others department. It helps to determine the strength and weaknesses of the organisation so the department put their effort in order to remove the weakness of the organisation so it is necessary for the various department to attain desired goals and objectivities of the organisation. Interrelation between functions of the department of Unilever Plc which are explained below:

Human resource department: There are various types of activities that perform different types of activities like workforce planning, appraising performance, determination of the remuneration and many others.

Marketing department: Marketing department controls the department of manufacturing which gives relevant information about the demand and wants of the people.

Finance department: This is the most important department of any organization this department deals with the allocation of the funds to various department of the organization.

Production department: It deals with the production of various types of products in organisation. As Unilever Plc produce qualitative products which is given to various customer.

Organization Structure

Structure of the company is bifurcated on the basis of requirements which are the following:

  • Function-based: The structure of the organization is based on the types of activities performed in the company.
  • Geography based: Organisation manufacture products as per the demand of the customer. It produces qualitative products to the customer.
  • Products based: Define the structure of the organization is based on the production of different products.
  • Consumer-based: Organisation needs to know the demand and desire of the customer and manufacture different types of products as per the demand of the customer and implement innovative ideas to produce a new range of products in order to satisfy the demand and desire of the customer.

Task 3

Impact of macro-environmental factors

Any organization which performs different types of activities which are performed in the competitive environment. The environment of the organisation is being affected by the different types of environmental factor which give negative as well as positive impact. The micro factors are political, economical, social, technological, legal and environment.

Steeple Analysis:

  • Social factors: it is concerned with the behavior and curiosity of the customer which impact the different types of business operation
  • Technological factors: This is concerned with the implementation of the new and innovative technology which aids to increase the effectiveness in the process of production and market process.
  • Environment factor: It is the duty of the company to create an effective environment in order to perform different types of operations of the business. There are various types of rules and regulations which are implemented by the organization not harm the environment after usage.
  • Economic factors: Due to economic stability in the nation, Unilever Plc can explore its business in different areas of the market. This helps to generate a large number of revenues and maximize the level of profit of the company.
  • Political products: Unilever Plc provide different types of products to the people of the UK. As there are different rules and regulations in different countries.
  • Legal factor: There are various types of legal implications and the legal standard which is imposed by the government in order to smooth the running of the business operations.
  • Ethical factors: It is concerned with the different types of factors which bounds the company works according to the values and customer during performing different types of activities of the organization.

Read this sample: Business and Business Environment Level 5 

Task 4

Internal analysis of organization for identification of strength and weaknesses

It is the duty of the management of the company to determine the strength and weaknesses of the organization in order to capture the opportunity to perform different types of activities of the organization in an effective manner. SWOT analysis plays a significant role in order to determine the internal information of the organization.

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