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STRATFORD COLLEGE LONDON

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Table of Contents
Activity 1: Organisation types, size, scope, and the interrelationship of the various
functions within an organisation and link to organisational structure ............................... 3
Introduction to the report ................................................................................................. 3
Growth of international business environment ............................................................. 3
Analysis of the organisation ............................................................................................ 3
The various functions within the business and creation of Unilever organisational
chart to explain the interrelationships between different functions (P3) ....................... 5
Advantages and disadvantages of the interrelationships between the organisational
functions and the impact that it can have upon the organisational structure (M2) ........ 8
Complexities of different types of business structures and the interrelationships of the
different organisational functions –D1 .......................................................................... 9
Activity 2: The impact of the macro environment and external macro factors on business
operations and the interrelationship with the internal strengths and weaknesses. ........ 11
Introduction to the report ............................................................................................... 11
Identification of the impact of macro environment upon business operations (P4)...... 11
Internal and external analysis of the organisations (Unilever and Virgin Atlantic) (P5+P6)
...................................................................................................................................... 12
Interrelation of strengths and weaknesses with external macro factors (P5+P6) .......... 13
Macro environment factors and organisational internal audit ........................................ 14
PESTLE (Virgin Atlantic-VA) ...................................................................................... 14
SWOT/TOWS matrix (Unilever and Virgin Atlantic) ................................................... 15
Justification of decision making.................................................................................. 17
Critical evaluation of the impact of macro and micro environment upon business
objectives and decision making (M3; M4 & D2) ............................................................ 17
Bibliography .................................................................................................................. 19

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Activity 1: Organisation types, size, scope, and the
interrelationship of the various functions within an
organisation and link to organisational structure

Introduction to the report


This is report is directed to the team leader of the event and it follows the purpose of
defining organisational types based on size, scope and legal structure. For this purpose,
one organisation from each type such as public, private and voluntary sector has been
selected to analyse. Alongside, the interrelationship of the organisational structures with
the business function and objectives have also been analysed to provide clear view of
the report. This report could be beneficial for the event design and team management
on basis of organisational structure and integrated communication findings.
Growth of international business environment
Meyer and Peng (2016) discussed that, the international businesses have grown
dramatically in past few years due to globalisation impact and environmental changes.
Various factors contribute to the international business growth such as saturation of
domestic markets and the opportunities of the foreign market on basis of resource
utilisation. The international business growth also provides the firm with better chances
of profit earning and sales expansion. However, the macro environment factors needs
to be analysed for long-term sustainability achievement. Increase in technology and
communication, consumer interest and global competition that have caused the firms to
think beyond the origin country market. However, the governmental supports such as
tax reduction and the free trade policies have also given rise to the international
business environment (Cavusgil et al. 2014)

Analysis of the organisation


Table 1

Voluntary
Sector- UK-
NCVO
Type of Private- Virgin Public- Unilever (National
Differences
organisation Atlantic UK UK Championing
Voluntary
Action)

‘The highest To connect, The purpose is


‘Changing standards of represent and each
business for corporate support the organisation is
Purpose good’ behaviour towards voluntary based on its
-(Virgin Atlantic, everyone we work organisations organisational
2017) with, the for the type and
communities we development structure

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touch, and the of society and therefore, all
environment on making three holds
which we have an difference in great difference
impact’- (Unilever, the lives of of actions from
2017) the people. each other.
All three are
hierarchical
structures but
vary in terms of
Hierarchical
functional,
Hierarchical structure
Legal Divisional divisional and
functional based on
Structure structure hierarchy
structure functional
based chain of
structure
commands for
operational
decision-
making.
VA is private
entrepreneurial-
based
Trustee board
company,
British Airline Dual-listed based
Unilever is
company company having company
public listed
(Private global presence in comprising of
Type company and
company of consumer goods 12 trustees
the NCVO is
Richard (Public limited and 50 string
volunteering
Branson) company) members
company that
assembly
has total
different aim of
operations.
All three are
large
Large
organisation
Fleet size=39 Large Large
but with
Destinations=29 More than million Over 13000
Size different
More than employees from member
structure, size
thousand all over the world organisations
and perspective
employees
of working in
the industry
To reach new To grow business To support Each
heights of the for sustainable voluntary organisation is
airline industry development by organisations working for
Scope through improvising the and achieving the
innovation, lives of people connecting future
customer service from the products people for the objectives and
and quality of Unilever identification scope of

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delivery of best sustainable
knowledge development
and expertise and business
objective
success.
The structure of
the company
relates to its Depending
business Since it is upon the
objective, which voluntary organisational
is to promote Divisional organisation, structure, each
every division structure of the each function organisation is
and function of organisation is is responsible performing on
the organisation most efficient for its own basis of its
successfully. The regarding its work. There business
Link with
Virgin group is a global presence are different objectives and
business
vast group of and wide product voluntary product
objectives
different range. The functions of services
and product
divisions and sub divisional the accordingly.
services
groups operating structure allows organisation There exist
(M1)
is diversified field the firm to focus based on differences of
of businesses, on each social welfare structure,
therefore, its department that are scope, size and
structure allows independently and working purpose of
the firm to take decisions independently existence for
operate on basis accordingly. on basis of the
of business volunteer organisations
functions and work. that are evident
divisions to act in the table.
responsibly for
own revenues.
(Source adapted from: Unilever 2017; Virgin Atlantic 2017; NCVO 2017)

The various functions within the business and creation of Unilever


organisational chart to explain the interrelationships between different functions
(P3)
Oliver (2012) discussed the basic organisational chart to depict key business functions
in an easy way through using the figure below
Figure 1
Basic functions of an Organisation

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Source: (Oliver, 2012)
This was basic organogram showing the main functions of the organisations such as
production, sales, marketing and procurement. However, extending these functions
there is also Human Resources, Accounting and finance and Research and
development (R&D) functions in the organisation that plays vital role in the functioning
of the business objectives (Baker 2014). Overall, these functions are discussed as
follows for clear understanding of role within the business
Production: This functional unit manages the production process and the operational
processes of the company. However, the function is also responsible for the quality
management. This department ensures that the assets of the company such as,
machinery, labour, and the raw materials are effectively utilised and in best favour of the
organisation through cost saving and quality production services.
Sales: Sales is the core revenue generation department of every firm. Sales present the
company’s product the market. Alongside, it also manages the budgets based on
demand and supply of the product. However, sales department is also responsible for
understanding consumer requirements to make sure product satisfies the customer’s
expectations (Johnston and Marshall 2016).
Marketing: It coordinates with all the functions of the organisation. Marketing
department is responsible for product promotions, advertisement, packaging, designing,
and distribution and planning. Overall marketing holds great responsibility over the
organisation to budget, plan, organise, control and implement everything about the
product from production to sales department. Therefore, this function needs to integrate
with all other functions for information exchange and decision-making (Baker 2014).
Procurement: It serves as the main function of the organisation that helps in
maintaining supplier relationships and production functions. Effective procurement
saves the costs of the company and helps in achieving good quality production.
Therefore, this function of the company integrates with production and finance for
effective procurement and supply chain purpose (Johnston and Marshall 2016).
Research and development (R&D): This department serves the purpose of achieving
market and customer insights through research and development of the product. This

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functional unit scans the external environmental and new trends to develop the products
according to the consumer needs (Foxall 2014).
Finance and accounting: Finance and accounting department is responsible for
budget allocation, for each of the functional unit. This department help in analysing the
financial position of the company. The accounting helps in achieving internal and
external audit that provides the organisation with new objectives and opportunities of
success in market (Cummings and Worley 2014).
Human resources (HR): HR is considered as the asset of the organisation. HR is
responsible for the recruitment, training, development and control of the internal
environment of the organisation. The HR department also ensures employees safety
and job security to induce more productivity for achieving organisational objectives
(Cummings and Worley 2014).
These functions are presented in the Organisational chart of Unilever below
Figure 2

(Source: Creately.com 2017; Unilever 2017)

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The organisational chart is depiction of Unilever basic operations of Unilever where
each department is handling its own function with respective sub functions. However,
the chart above is not exact depiction of Unilever’s organogram but it gives the glimpse
of the functions of the divisions and managerial responsibilities of the company. The
company is also utilising all of the core function, which were discussed in the above
section for successful achievement of business objectives.
Advantages and disadvantages of the interrelationships between the
organisational functions and the impact that it can have upon the organisational
structure (M2)
Unilever believes in the integrated communication system to keep the functional
departments and production process smooth. However, the business model of the
company also highlights this process through integrated functions presentation. The
business model of Unilever strives for growth through reducing risks and external
threats. The company is also inducing innovation as one of the key factors to achieve
sustainable development. The figure below discusses the integrated business model
for Unilever
Figure 3
Unilever business model

Source: (Unilever Strategic Report 2016)


The company follows the divisional organisational structure, where each division is
responsible for its own growth and innovation. This structure integrates different
organisational functions respectively to each division such as for sales, procurement,
production, marketing etc. The company’s structure is beneficial on basis of is diverse
portfolio and global presence. Below discussed are the advantages and disadvantages
of the interrelationships between the organisational functions

Advantages Disadvantages
 Integrated effective communication  Confused chain of commands

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 Effective decision making on basis of recent  Focus on the functional success
information rather than organisational
 Divisional control success
 Growth prospects for each functional unit  Managerial competition to uplift
 Support from all functions to the business single function of the organisation
objectives
(Source: Real et al. 2014)
Impact on organisational structure
The interrelationships of the functions of the company support organisational structure
that is based on hierarchy and matrix structure. However, this interrelationship is also
beneficial for the divisional structures where the divisions are working independently.
Contrary, the functional structures lack the interrelationship on basis of integration and
communication; this is because in such structures each function is acting independently.
However, for Unilever, divisional structure is adapted that supports the product
development and innovation throughout the division. Alongside, all the divisions act
responsibly to achieve holistic organisational objectives and customer needs.
Complexities of different types of business structures and the interrelationships
of the different organisational functions –D1
The organisational structure defines the relationship and interrelation of the business
departments and identities with the each other in a specified chain of command for
communication and integration. However, the business functions are the business
activities such as production, marketing, sales and financial management. The
organisational structure holds great importance in managing business communication
(O'Neill et al 2016). The different types of business structure and its interrelationships
with organisational functions are discussed as follows.
Functional structures: The functional structures are focused on business function and
thus the business provides autonomy to the functional departments for independent
decision-making. This structure provides clear line of authorities since, every manager
is responsible to boost the personal function. However, the major issue with this
structure is integration is not achieved therefore, the functional clashes and resource
allocation gets disturbed. Alongside, the accountability is also dispersed that causes the
issues of information lost and mismanagement (Harper 2015)
Matrix Structure: Matrix structure provides with the flexibility in business functions. The
matrix structure is based on the function-based department and interrelated teamwork.
This way the organisations need to be inter connected in terms of decision-making and
resources allocation. The structure adapts to the organisational functions for bringing
change and innovation into the organisation. However, the chain of commands could
get confused in this structure on basis of multiple functions and teams (Boyd et al
2017).
Divisional Structures: These structures are based on divisional operations. There
exists different product lines and divisions for each product line and the divisions act
independently. The major advantage of this structure is each branch is responsible for

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its own success. However, the problem with this structure is the divisions performing
identical functions have the chances of increasing redundancy and productivity issues
(Harper 2015).
Hierarchy structure: This is a simple structure based on horizontal or vertical hierarchy
systems, where there is simple chain of commands with interrelated
departmentalisation. However, this structure could integrate other structures also for
more complex structure and control management (O'Neill et al 2016)..

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Activity 2: The impact of the macro environment and external
macro factors on business operations and the
interrelationship with the internal strengths and weaknesses.

Introduction to the report


This report is for the team leader of the event. The main purpose of this report is to
present the impact of the macro environment and factors on the business operations of
an organisation. In order to justify this purpose the interrelationship of the environmental
factors with the internal strengths and weaknesses has also been discussed. However,
this report could play a positive role in understanding and defining the need of scanning
environmental factors for a successful event and team management.

Identification of the impact of macro environment upon business operations (P4)


The macro environment of the market is based on the large societal factor that affects
the microenvironment of the company. Six major forces of the macro-environment affect
the microenvironment. These six factors include social-cultural, political/legal factors,
technological factors, economic, demographic, and natural environmental factors. The
companies scan the macro environment for seeking opportunities and identifying threats
from external sources. Therefore, for organisations it is essential to analyse marketing
environment that is also known as external macro environment for identifying the
influencers of the business and target market (Carroll and Buchholtz 2014)
Political legal environment: This market force comprises of the country based political
and legal conditions, policies and the political stability that contributes to the decision
making of the company.
For example, the aggressive divorce of the political ties between the countries
could put great strain on the foreign product investment and trade. The Almarai
Company of Saudi Arabia faced loss of product trade and low market share due to its
broken ties with Qatar on basis of political/ legal condition. The Qatar airways are also
facing great downturn due to its bad ties with Gulf countries on basis of political
instability and interferences (Roberts 2017)
The demographic environment is essential for the company for the development of
product and its positioning in the market. For this purpose, changes in ethnic
composition, educational level, and population growth of the country need to be
analysed.
Levis took an edge over other jeans companies through targeting the right
demographics in the western countries such as, teenagers, young adults, and adults
who were more into style and rugged clothing. This step of Levis gave it an advantage
over other firms to achieve market share and brand name in the market that is known
for its jeans (Bhattacharjee 2015)

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For economic environment, the infrastructure of the country, level of income, savings,
debt, and the GDP factors are scanned for the identification of economic sustainability
of business. For example, Debenhams faced market decline and low expansion in
Pakistan due to lack of economic forces to support the sales and expansion of the retail
outlets (Imtiaz 2015)
In social-cultural arena, marketers understand the consumer’s views and the social
factors that could contribute to the purchase behaviour. Such as, culture, trends, religion
and the personal orientation of the target market.
For example, in china PepsiCo faced a lot of problem since its launch. This is
because, due to national concept of healthy lifestyle since the past few years, the
obesity problems from soft drinks are being highlighted that has caused the firm to lose
its market share. However, Pizza hut and KFC also have to adapt to the cultural aspects
of product customisation in the Gulf and Asian countries where spicy food and local
flavours are liked. Therefore, social-cultural knowledge of the market improves the
sustainability of the business in the long term (Ukey and Krishnarao 2014).
Technological change is one of the most effective forces that contribute the overall
production and organisational development. Changes in the technology due to
globalisation have forced many firms to move towards integrated communication
systems and the automated production. Therefore, such changes in the macro
environment are analysed by the firms for effective business operations.
Apple was the market leader in the smart phone industry but due to technological
changes and up gradation of the android software and introduction of similar systems,
Apple is now facing low market share targeted to niche due to availability of similar
products at low prices with more technological features (Ross and Sharapov 2015).
Natural environment of the country plays a vital role in defining company objectives and
making the firm more socially likeable. This is because naturally, dedicated firms are
appreciated by the society for social causes. However, it has also become an essential
need of the firm to analyse natural environment due to increased pollution, wastage and
the government policies towards natural resource protection.
Sarah textiles of Pakistan trading in USA and Netherlands faced great
environmental hazards due to air and noise pollution that has caused the firm to expend
on the new operational equipments that are environmentally stable. However, Shell is
also environmentally responsible in UK due to its product wastage and by-product
hazards. However, it has also tried to reduce carbon emissions for environmental
sustainability (Shell.com 2016; Sarahtex 2016).

Internal and external analysis of the organisations (Unilever and Virgin Atlantic)
(P5+P6)
SWOT analysis acronym for strengths, weaknesses, opportunity and threats helps in
identifying the core competencies and the lacking of the company in comparison with
the market. This tool helps in analysing the company, competition, market opportunities

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and the customer under single analysis. Internally the strengths and the weaknesses of
the company are identified. However, externally the threats from external sources such
as, macro environment and the opportunities from the market that is need identification
are conducted to provide guidance to the organisation for achieving business
objectives. The internal and external analysis of the Unilever and Virgin Atlantic are
discussed for further discussion.
Unilever
Sen and Rajagopal (2017) stated that, Internally the company has been operating well,
that has caused the firm to gain competitive market position and strong consumer
support. However, the external threats such as, retailer products, in-house and local
products such as from Wal-Mart are increasing the external threats of the company.
Alongside, the European market is also facing currency devaluation with the political
instability after Brexit that has also caused the firm to achieve low profits on basis of its
sales in UK. The company could also utilise its resources to expand its market
diversification and reduce external threats.
Virgin Atlantic (VA)
Internally the Virgin Atlantic has been performing well on basis of its group support and
financial reputation. It has the benefit of strong foundation and efficient services. The
company also enjoys good market share, which is enough to satisfy large pool of
customer’s through its services. The company is internally strong based on promotional
activities and marketing. The airline is known for its innovativeness and creative
branding. It has large flight crew with over 35 designations to fly. However, the company
also faces weakness of limited global presence especially in the emerging economies
that has caused the firm to lack the long-term planning for expansion and business
transformation.
Externally there exist great threats of severe competition and the economic prices for
the similar services. British airways are its direct competition on basis of European
market. However, the company also has the opportunities available in the external
market comprises of the route options and fuel consumption reduction due to Boeing
787. Since October 2014, the company has acquired 22 Boeings that has enabled the
firm to consider new routes and economic pricing strategies.

Interrelation of strengths and weaknesses with external macro factors (P5+P6)


The strengths of the VA could help the company to overcome its external weaknesses
such as threats and could also help in gaining new opportunities. Through financial
strength, the company was able to buy Boeing 787 that has enabled the firm to
overcome the expenses of fuel, routes and the pricing. The weakness of the company
such as, limited routes was also overcome through this decision. However, the
company also benefited from the governmental support of the new runway at Heathrow
airport that has enabled the firm to invest in more routes and flights. The company has
also transformed technologically through the launch of AIR4 program, which was also a
one of the best investment-based decision for VA (Virgin Atlantic 2017)

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Macro environment factors and organisational internal audit
The internal audit helps in identifying that the organisation’s risk management,
governance and internal control processes are operating effectively. The macro factors
however, are the influencers to this internal assurance. The factors such as, social,
political, and environmental could pose threat for the organisation that could delay the
audit and also its internal environmental control. The social unrest in the country could
cause service delays, along with the political instability to operate successfully in the
market such as in the case of Virgin Atlantic in 2016 on basis of France social unrest.
However , the environmental changes also causes the operational ineffectiveness such
as, for textile industry the by products are threat to the environmental sustainability that
is ultimately a social, environmental and legal concern for the textile companies all over
the world. Technological intervention and advancements are also such environmental
factor that could delay and fasten the internal audit due to utilisation of the latest
technological tools and integrated systems such as financial and market analysis based
tools (Virgin Atlantic 2017). Overall, Internal audit looks beyond financial risk and
provides the guidance to the firm for successful integration of the operations and the
future goals achievement. However, macro environment factors could affect the internal
audit and cause delays due to operational ineffectiveness. Whereas, the delay of
internal audit due to environmental factors could also prevent the implementation of
business strategies and business objectives for the sustainable outcomes.
PESTLE (Virgin Atlantic-VA)
For the pestle analysis, Virgin Atlantic has been considered since it has faced many
challenges in the past years to maintain its market position (Virgin Atlantic 2017)
Political environment: VA faced great challenging political environment in the year
2016 due to Brexit, when Britain voted to leave EU. This decision caused political,
economical and legal problem for the company in term of operations and business
objectives success. However, the expansion of Heathrow Airport also caused the firm to
overcome its threats.
Economic environment: The economic factor such as currency devaluation has
caused the firm to face low profit in the year 2016, this is because, VA recorded
expense is in dollars and its revenues are in pounds.
Social Environment: The social unrest at France has caused the firm to cancel its
flights to France for the security reasons and strikes at the Air Traffic Control (ATC).
Hence, the company also presented a petition along with several other airlines to
develop an action plan to minimize the ATC strikes
Technological environment: Since the 911 attack, the airline industry has opted
several technological advancements to make its services more secure and customer
oriented. However, the digital revolution has also caused the airline industry to alter its
technological structures for consumer access and convenience. AIR4 is the Virgin
Atlantic’s newest program that is technologically efficient and effective for the
consumers and the company as well. The program has integrated online booking, flight
checking, kiosk services and has also enabled everything regarding booking on a
mobile app that is handy and accessible by every user (Wikimedia virgin travel 2016)

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Legal environment: The industrial action of the pilot union in 2016 to be recognised as
the Virgin’s pilot stand instead of the British airline pilot association has caused the firm
to face legal changes on basis of documentation and association.
Environmental factor: The weather conditions are changing due to global warming;
however, the record braking temperatures have also been recorded in the year 2016
that has caused flight delays, cancelations and even operational disruptions. The
conditions causes travel chaos and affected the firm’s reputation along with customer
satisfaction.
SWOT/TOWS matrix (Unilever and Virgin Atlantic)
The tables below discuss the Unilever and the Virgin Atlantic’s TOWS matrix that not
only discuses the SWOT of the companies but also provides solution and
recommendations to the external threats and internal capability utilisations.
Figure 4
TOWS matrix Virgin Atlantic

Internal factors
Strengths (S) Weaknesses (W)
 Well known brand in  Flight delays
Britain  Les routes
 Good service  Entrepreneurial decision
 Customer satisfaction making
 Flight innovation  Increased costs
 Technologically oriented
 Quality
 Competitive pricing
 Boeing 787 purchases
 Partnerships with
Singapore airlines
 Strong internal control
Opportunities (O) SO WO
 Advanced  VA could utilise its brand  VA could use its
inventory name and ethnology to opportunities to
system. attract more customers overcome the
 Additional through promotions and weaknesses; a
routes due to the competitive pricing. successful
Heathrow However, the opportunity implementation of the
of cost cutting was also opportunities could
External factors

airport
expansion achieved by purchase of provide VA with reduced
 Cost cutting due new Boeing 787 which costs and more routes.
to Boeing 787 were fuels effective and However, the decision-
 AIR4 new were able to go on new making needs to be
technologically routes through Heathrow consented based on
advanced runway expansion. market conditions and

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system for flight external factors.
checking and
notifications

Threats(T) ST WT
 Recession of  Through its quality and  Together the weakness
the country brand maintenance, the and threats could build a
economy company could gain good great operational and
 Low currency profits that could benefit financial problem for the
value of pound the competitive company; therefore, it is
sterling environment. essential to reduce its
 Fluctuating fuels  Trading in different weaknesses and threats
process currencies on basis of for sustainability
 Competition on business reach is also management.
routes and beneficial for the company  Business objectives
pricing to reduce pound sterling could help in reducing
fluctuations impact. threats.
(Source: Gregory 2010; Viginatlantic 2017; Luttner 2017)
Figure 5
TOWS matrix Unilever

Internal factors
Strengths (S) Weaknesses (W)
 Strong brand existence  Similar products
 Wide range of product mix availability
 Economies of scale  Limited business
 Strong global presence diversification outside
 Strong company’s culture the consumer goods
and internal control industry
 Good relations with  Retailer dependency
suppliers  Promotional costs and
consumer dependency

Opportunities (O) SO WO
 Business  The company could utilise  Business diversification
diversification its opportunities through could rescue the risk of
 Product development of products. similar production
innovation  Unilever could enter into  Product innovation and
External factors

 Market product market for market expansion also


expansion diversifications such as has the potential to turn
 Personal retail grocery items and limited business based
stores personal retail stores. weakness into strength.
 Environmental  Product and packaging  Opportunity to enter into
concerns for innovation retail market could also

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consumer  Partnerships and provides the firm with
interest acquisition could also competitive advantage
support the firm by over other retails tears.
reducing imitation of
products
Threats(T) ST WT
 Competitive  Based on strong brand  The threats of the
market existence the competitive company are associated
 Product market position could be with its weaknesses, the
imitation achieved. company need to work
 Local or in-  Based on high retail and on weaknesses first, in
house brands supplier management the order to reduce the
 External threats threats of local products threats for the long-term
to the economy could also be reduced business objectives
could also affect  Using economies of scale development.
the sales of to induce promotional  Business sustainability
Unilever pricing and package 2020 plans could reduce
products also has the the threats and
potential to reduce weaknesses of the
external threats. company.
(Source: Hasan 2015; Unilever 2017; Sen and Rajagopal 2017)
Justification of decision making
In Unilever most of the decision-making is in the hands of the stakeholder due to its
global presence and public company nature. However, the decision making of Virgin
Atlantic is in the hands of solely Richard Branson due to the private company nature.
However, both the companies are operating successfully in Europe and facing tough
competition. However, it is due to the competitive analysis and external market analysis
that the companies are able to identify its opportunities and change its weaknesses into
strengths. Alongside, successful management of the macro environment also ensures
the achievement of business objectives through strong internal control.

Critical evaluation of the impact of macro and micro environment upon business
objectives and decision making (M3; M4 & D2)
The internal environment factors of the company allow the firm to analyse its internal
capabilities and the ways to deal with the weaknesses. However, the microenvironment
also helps in defining the objectives of the company through the utilisation of available
resources and capabilities. Microenvironment keeps the internal control and the
resource utilisation in check. The application of macro-environment keeps the external
threats away from the company through strengthening the internal capabilities. For
example: Unilever performed market analysis before the launch of lux’s new variants in
order to identify the new opportunities of product variation along with the customer
insights that helped the company to improve the sales of its brand on a new level.
The external forces, influences the internal environmental and brings in uncontrollable
threats to the company. The macro-environment forces are of higher impact and also

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influences the business objectives by causing the delays in the operational activities
and internal audit. Macro environment factors need to be constantly analysed for
preparing the company to be proactively ready for the threats. Alongside, macro
environment also helps in analysing the market opportunities through need creation and
demographics analysis. Alongside, governmental support also opens the new ways for
success for the companies such as for Virgin Atlantic due to the runway expansion of
Heathrow airport (Wikimedia virgin travel, 2016)

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Bibliography
Activity 1
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Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L.
(2014). International business. Pearson Australia.
Creatly.com (2017) Organisation chatr Unilever [Online] available at
<https://creately.com/diagram/new-
example/hacdentd1/Org%20Chart?pg=8&cat=organisation-chart> [20th Nov.
2017]
Cummings, T. G., & Worley, C. G. (2014). Organisation development and change.
Cengage learning.
Foxall, G. (2014). Strategic Marketing Management (RLE Marketing) (Vol. 3).
Routledge.
Harper, C. (2015). Organisations: Structures, processes and outcomes. Routledge.
Johnston, M. W., & Marshall, G. W. (2016). Sales force management: Leadership,
innovation, technology. Routledge.
Meyer, K., & Peng, M. W. (2016). International business. Cengage Learning.
NCVO (2017) About Us. [Online] available at <https://www.ncvo.org.uk/> [20th Nov.
2017]
Oliver, G. R. (2012) Foundations of the Assumed Business Operations and Strategy
Body of Knowledge (BOSBOK): An Outline of Shareable Knowledge. Darlington
Press.
O'Neill, J. W., Beauvais, L. L., & Scholl, R. W. (2016). The use of organisational culture
and structure to guide strategic behavior: An information processing
perspective. Journal of Behavioral and Applied Management, 2(2).
Real, J. C., Roldán, J. L., & Leal, A. (2014). From entrepreneurial orientation and
learning orientation to business performance: analysing the mediating role of
organisational learning and the moderating effects of organisational size. British
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Unilever (2017) About Us. [Online] available at <https://www.Unilever.co.uk/> [20th Nov.
2017]

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Unilever Strategic report (2016) [Online] available at
<https://www.Unilever.com/Images/Unilever-annual-report-and-accounts-
2016_tcm244-498880_en.pdf> [20th Nov. 2017]
Virgin Atlantic (2017) About Us. [Online] available at < http://cargo.virgin-
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Activity 2
Bhattacharjee, A. (2015). Global or Local? What Sells in International Advertising?. IPE
Journal of Management, 5(1), 102.
Carroll, A., & Buchholtz, A. (2014). Business and society: Ethics, sustainability, and
stakeholder management. Nelson Education.
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13.
Imtiaz, A. (2015). Business Expansion of Apparel Brands: Accessing opportunities in
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campaign
[Online] available at <https://www.campaignlive.com/article/exclusive-virgin-
atlantic-sees-bright-side-brexit-darkly-funny-
campaign/1429763#f0WilktBqu22y676.99> [20th Nov 2017]
Roberts, D. B. (2017). Qatar, the Ikhwan, and transnational relations in the Gulf. The
Qatar Crisis, 54.
Ross, J. M., & Sharapov, D. (2015). When the leader follows: Avoiding dethronement
through imitation. Academy of Management Journal, 58(3), 658-679.
Sarahtex.com (2016) Our company [Online] available at <http://www.sarahtex.com/our-
company//> [20th Nov 2017]
Sen, S., & Rajagopal, K. (2017). SWOT ANALYSIS OF FAST MOVING CONSUMER
GOODS COMPANIES–A CASE STUDY ABOUT PATANJALI AYURVED IN
INDIA.
Shell.com (2016) Sustainability report [[Online] available at
th
<https://reports.shell.com/sustainability-report/2016/> [20 Nov 2017]
Ukey, D., & Krishnarao, L. (2014). THE NUANCES OF INTERNATIONAL BUSINESS
AND MARKETING: STUDY OF VITAL ASPECTS AND CHALLENGES FACED
IN GLOBAL TRADE OF GOODS/SERVICES. International Journal of Trade &
Global Business Perspectives, 3(2), 881-889.

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Unilever (2017) About our strategy [Online] available
at<https://www.unilever.co.uk/sustainable-living/our-strategy/about-our-strategy/
> [20th Nov 2017]
Virgin Atlantic (2017) Change is in the Air: Our sustainability programme [Online]
available at <https://www.virginatlantic.com/gb/en/sustainability.html> [20th Nov
2017]
Virgin Atlantic (2017) Virgin Atlantic announces route changes [Online] available at
<https://www.virgin.com/news/virgin-atlantic-announces-route-changes> [20th
Nov 2017]
Wikimedia virgin travel (2016) VIRGIN STRATEGIC MANAGEMENT ANALYSIS
INTERNATIONAL BUSINESS [Online] available
at<http://www.globalsocialmediamarketing.com/2016/05/18/virgin-strategic-
management-analysis-international-business/> [20th Nov 2017]

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