Higher Nationals

Internal verification of assessment decisions – BTEC (RQF)

INTERNAL VERIFICATION – ASSESSMENT DECISIONS

Programme title Pearson Higher Nationals in Business

Assessor Internal Verifier

Unit(s) Unit 1: Business and the Business Environment

Assignment title Understanding different types of organizations in different perspectives and analyze
the link between organizational structure and the functions.

Student’s name S.M Kavishka Milan Chamidu Bandara

List which assessment Pass Merit Distinction

criteria the Assessor has
awarded.
INTERNAL VERIFIER CHECKLIST

Do the assessment criteria awarded

match those shown in the assignment Y/N
brief?

Is the Pass/Merit/Distinction grade

awarded justified by the assessor’s
comments on the student work? Y/N

Has the work been assessed

Y/N
accurately?
Is the feedback to the student:
Give details:

• Constructive?
Y/N
• Linked to relevant assessment
criteria? Y/N

• Identifying opportunities
for improved performance? Y/N
Y/N
• Agreeing actions?
Does the assessment decision need
Y/N
amending?
Assessor signature Date

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required)
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 Higher Nationals - Summative Assignment Feedback Form
Student Name/ID

Unit Title
Assignment Number Assessor
Date Received 1st
Submission Date
submission
Date Received 2nd
Re-submission Date
submission
Assessor Feedback:

LO1 Explain the different types, size and scope of organizations

Pass, Merit & Distinction P1 P2 M1 D1

Descripts
LO2 Demonstrate the interrelationship of the various functions within an organization and how they link to
organizational structure

Pass, Merit & Distinction P3 M2 D1

Descripts

LO3 Use contemporary examples to demonstrate both the positive and negative influence/impact the macro
environment has on business operations

Pass, Merit & Distinction P4 M3 D2

Descripts

LO4 Determine the internal strengths and weaknesses of specific businesses and their interrelationship with
external macro factors.

Pass, Merit & Distinction P5 P5 M4 D2

Descripts

Grade: Assessor Signature: Date:

Re submission Feedback:

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

Signature & Date:

* Please note that grade decisions are provisional. They are only confirmed once internal and external moderation has taken place and grades
decisions have been agreed at the assessment board.

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Action Plan

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Pearson
Higher Nationals in
Business
Unit 01: Business and Business Environment
Assignment 01
General Guidelines

1. A Cover page or title page – You should always attach a title page to your assignment. Use
previous page as your cover sheet and make sure all the details are accurately filled.
2. Attach this brief as the first section of your assignment.
3. All the assignments should be prepared using a word processing software.
4. All the assignments should be printed on A4 sized papers. Use single side printing.
5. Allow 1” for top, bottom, right margins and 1.25” for the left margin of each page.

Word Processing Rules

1. The font size should be 12 point and should be in the style of Time New Roman.
2. Use 1.5 line spacing. Left justify all paragraphs.
3. Ensure that all the headings are consistent in terms of the font size and font style (First level
16/bold, Second level 14/bold and Third level 12/bold).
4. Use footer function in the word processor to insert Your Name, Subject, Assignment No,
and Page Number on each page. This is useful if individual sheets become detached for any
reason.
5. Use word processing application spell check and grammar check function to help editing your
assignment.

Important Points:
1. It is strictly prohibited to use textboxes to add texts in the assignments, except for the compulsory
information. eg: Figures, tables of comparison etc. Adding text boxes in the body except for the
before mentioned compulsory information will result in rejection of your work.
2. Avoid using page borders in your assignment body.
3. Carefully check the hand in date and the instructions given in the assignment. Late submissions
will not be accepted.
4. Ensure that you give yourself enough time to complete the assignment by the due date.
5. Excuses of any nature will not be accepted for failure to hand in the work on time.
6. You must take responsibility for managing your own time effectively.
7. If you are unable to hand in your assignment on time and have valid reasons such as illness, you
may apply (in writing) for an extension.
8. Failure to achieve at least PASS criteria will result in a REFERRAL grade .
9. Non-submission of work without valid reasons will lead to an automatic RE FERRAL. You will
then be asked to complete an alternative assignment.
10. If you use other people’s work or ideas in your assignment, reference them properly using
HARVARD referencing system to avoid plagiarism. You have to provide both in-text citation
and a reference list.
11. If you are proven to be guilty of plagiarism or any academic misconduct, your grade could be
reduced to A REFERRAL or at worst you could be expelled from the course
Student Declaration

I hereby, declare that I know what plagiarism entails, namely to use another’s work and to present it as
my own without attributing the sources in the correct way. I further understand what it means to copy
another’s work.

1. I know that plagiarism is a punishable offence because it constitutes theft.

2. I understand the plagiarism and copying policy of the Edexcel UK.
3. I know what the consequences will be if I plagiaries or copy another’s work in any of the
assignments for this program.
4. I declare therefore that all work presented by me for every aspects of my program, will be my
own, and where I have made use of another’s work, I will attribute the source in the correct way.
5. I acknowledge that the attachment of this document signed or not, constitutes a binding
agreement between myself and Edexcel UK.
6. I understand that my assignment will not be considered as submitted if this document is not
attached to the attached.

Student’s Signature: Date: 2022.08.23

[email protected] (Provide Submission Date)
Higher National Certificate/Diploma in Business
Assignment Brief

Student Name /ID Number

Unit Number and Title Unit 01: Business and Business Environment

Academic Year 2021/2022

Unit Tutor

Assignment Title Understanding different types of organizations in different

perspectives and analyze the link between organizational structure
and the functions.

Issue Date

Submission Date

IV Name & Date

Submission format
 Section A

The submission should be in the form of an individual written report written in a concise, formal business style
using single spacing and font size 12. You are required to make use of headings, paragraphs and subsections as
appropriate, and all work must be supported with research and referenced using Harvard referencing system (in-
text and end-text referencing). The recommended word count for the report is 4,000–4,500 words but learner
will not be penalized for exceeding the total word limit.

Section B
The submission should be in the form of a written report that includes PESTLE analysis and SWOT/TOWS
analysis for the organization given in the case study. The key findings of the study need to be presented in a
15minutes PowerPoint presentation. (5 minutes allocated for the questions). Presentation slides and speaker
notes should be attached to the appendix in the report. The recommended word count for the report is
1,000–,1500 words but learner will not be penalized for exceeding the total word limit.

The report is required to make effective use of signposting (numbered headings, bullet points and subsections) in-
text referencing as appropriate. Your research should be referenced using the Harvard referencing system. Please
also provide a reference list using the Harvard referencing system.
Unit Learning Outcomes:

LO1 Explain the different types of organizations including their size and scope.

LO2 Demonstrate the interrelationship of the various functions within an organization and how they link to
organizational structure.

LO3 Use contemporary examples to demonstrate both the positive and negative influence/impact the macro
environment has on business operations

LO4 Determine the internal strengths and weaknesses of specific businesses and explain their interrelationship
with external macro factors.

Learning Outcomes and Assessment Criteria

Pass Merit Distinction

LO1 Explain the different types, size and scope of

organisations
LO1 and LO2

P1 Explain different types and M1 Analyse how the structure, D1 Provide critical analysis of the
purposes of organisations; size and scope of different
public, private and voluntary organisations link to the complexities of different organisations
sectors and legal structures. business and structures.
objectives and product and
services offered by the
P2 Explain the size and scope organisations.
of a range of different types of
organisations.

LO2 Demonstrate the interrelationship of the various functions

within an organisation and how they link to organisational
structure

P3 Explain the relationship M2 Analyse the

between different interrelationships between
organisational organisational functions and
the impact that can have upon
functions and how they link to organisational structure.
organisational objectives and
structure.

LO3 Use contemporary examples to demonstrate both the LO3 and LO4
positive and negative influence/impact the macro environment
has on business operations
D2 Critically evaluate the impacts that
both
P4 Identify the positive and M3 Apply appropriately the macro- and micro factors have on
negative impacts the macro PESTLE model to support a business
environment has on business detailed analysis of the macro objectives and decision making
operations, supported by environment in an
specific examples. organisation.

LO4 Determine the internal strengths and weaknesses of

specific businesses and their interrelationship with external
macro factors.

P5 Conduct internal and M4 Apply appropriately

external analysis of specific SWOT/TOWS analysis and
organisations in order to justify how they influence
identify strengths and decision making.
weaknesses.

P6 Explain how strengths and

weaknesses interrelate with
external macro factors
Assignment Brief and Guidance:

Section A

Suppose you has recently been recruited as a Business Analyst to a company of your choice which
expects to diversify its product portfolio into different industries. As your initial project, you are
required to prepare a management report to the Board of Directors on “Analysis of the Different
industries and their environments”:
-----------------------------------------------------------------------------------------------------------------------------
This will be presented as a report to the CEO. In the report you are required to investigate and explain
three different types of organizations (Including the organization that you have selected at the initial
point) and compare their size and classification to highlight differences between them. The report also
should include their legal structure, size and scope, and their key stakeholders. You must then explain
various functions of the selected organization and create an organizational chart to explain and analyse
the interrelationships between different organizational functions and the impact it creates upon the
structure of the organization. Advantages and disadvantages of the available interrelationships also need
to be explained and analysed in your report. Further You are required to critically analyze how the
different structures of the organizations creates complexities by comparing and contrasting the findings
of the organization which you are working in with the other two chosen organizations.

Section B
Section B:
You have been asked to perform an analysis on the current environmental factors that influence or
impact the organization chosen in section A. As the Business Analyst, the identified factors should be
presented to the top management of the company in a 15 minutes’ presentation.
----------------------------------------------------------------------------------------------------------------------
In the presentation you are required to analyze the macro environmental factors with the aid of PESTEL
analysis in order to highlight their positive and negative impact on the business. Further You need to
apply the SWOT/TOWS analysis to the organization to identify their key strengths and weaknesses and
strategies implemented by the organization to overcome threats and to make use of the opportunities.
You are then required to emphasize how identified factors influence the decision- making process of the
organization. You need to explain the interrelationships with the findings of SWOT/TOWS analysis and
the external factors identified (PESTEL). You also need to compare and contrast the findings of the
micro and the macro factors and critically evaluate their impact upon the objectives and the decision
making of the organization.
Grading Rubric

Grading Criteria Achieved Feedback

P1 Explain different types and purposes of

organizations; public, private and voluntary
sectors and legal structures.
P2 Explain the size and scope of a range of
different types of organizations.

P3 Explain the relationship between different

organizational functions and how they link to
organizational objectives and structure
P4 Identify the positive and negative impacts the
macro environment has upon business
operations, supported by specific examples.
P5 Conduct internal and external analysis of
specific organizations in order to identify
strengths and weaknesses.
P6 Explain how strengths and weaknesses
interrelate with external macro factors.

M1 Analyze how the structure, size and scope of

different organizations link to the business
objectives and product and services offered by
the organization
M2 Analyse the interrelationships between
organisational functions and the impact that can
have upon organisational structure.
M3 Apply appropriately the PESTLE model to
support a detailed analysis of the macro
 environment within an organization.
M4 Apply appropriately SWOT/TOWS analysis
and justify how they influence decision-making.
D1 Provide critical analysis of the complexities
of different organisations and structures.
D2 Critically evaluate the impacts that both
macro and micro factors have upon business
objectives and decision-making

OBSERVATION RECORD

Learner name:

Qualification: BTEC Level 4-HNC/HND Diploma (RQF)

Unit number & title: Unit 1: Business and the Business Environment

Description of activity undertaken

Assessment criteria targeted

How the activity covers the requirements of the assessment criteria (this does not confirm
achievement of assessment criteria or confer an assessment decision)
Learner name:

Learner signature: Date:

Assessor name:

Assessor signature: Date:

 WITNESS STATEMENT

Learner name:

Qualification: BTEC Level 4-HNC/HND Diploma (RQF)

Unit number & title: Unit 1: Business and the Business Environment

Description of activity undertaken (please be as specific as possible)

Assessment criteria (for which the activity provides evidence)

How the activity covers the requirements of the assessment criteria, including how and where the
activity took place (this does not confirm achievement of assessment criteria or confer an assessment
decision)

Witness name: Job role:

Witness signature: Date:

Learner name:

Learner signature: Date:

Assessor name:

Assessor signature: Date:

Content

Business Analysis Report – SLT mobitel ..................................................................

Executive Summery .............................................................................................................

1. Explain the different types of organizations including their size and scope. ...............
1.1. Different Types of
Organizations ...........................................................................................

1.1.1. Private
Sector ...........................................................................................................

1.1.2. Public Sector ...........................................................................................................

1.2. International business environment ...................................................................................

1.3. Overview of Three Different Organization ..........................................................................

1.3.1. About SLT mobitel ...............................................................................................

1.3.2. About Independent television

Network .....................................................................................

1.3.3. About Samanala valley

foundation ...............................................................................

2. Demonstrate the interrelationship of the various functions within an organization and

how they link to organizational structure...........................................................................

2.1. Explain the relationship between different organizational functions and how they link to

organizational objectives and structure. ....................................................................................

2.2. Analyze how the structure, size and scope of different organizations link to the business
objectives and product and services offered by the organization .............................................

2.3. Explain Business Functions ..................................................................................................

2.4. The Functions and Their Interrelationship in Mobitel .........................................

2.4.1. Explain Various Functions of the

Company ..................................................................

2.4.2. Interrelationship between the Organizational

Functions ............................................
 2.4.3. Analyze advantages and disadvantages of Interrelationships between
Organizational

Functions and the impact that can have upon organizational structure. ..............................

2.4.4. Critically analyze the Complexities of the different type of business

structures. ........

2.4.5. Critically analyze the Complexities of the Interrelationship of the different

Organizational Functions. .......................................................................................................

3. Use contemporary examples to demonstrate both the positive and negative influence/impact
the macro environment has on business operations ...............................

3.1. Apply the PESTLE model appropriately to support a detailed analysis of the macro-

environment within the organization. .......................................................................................

4. Determine the internal strengths and weaknesses of specific businesses and explain
their interrelationship with external macro factors. ...........................................................

4.1. Apply appropriately SWOT & TOWS analysis and justify how external macro factors

influence decision-making ..........................................................................................................

4.1.1. SWOT Analysis of Dialog Axiata PLC .......................................................................

References .......................................................................................................................... 51

Appendix – Presentation Slides and Speaker Notes .......................................................... 54

Business Analysis Report – SLT MOBITEL

Executive Summery

The main purpose of this assignment is to compare different types of institutions or other types
of organizations and highlight the differences between them and their classifications are included
in this report.
1.Explain the different types of organizations including their size &
scope.

What is Business

The term business refers to company or inventive entity engaged in commercial, industrial, or
professional activities. The main target of a business is to organize some sort of economic
production (of goods or services). There are for-profit and not-for-profit businesses and
organizations. (Investopedia –2022)

Business Environment

The most important aspect of any business is the business environment. The forces is the
business environment are its government, customers, media, suppliers, competitors, economic
conditions, investors, and other companies acting externally. (toppr,2020)

1.1Different type of Organization

This article on different types of organizations searches the different categories that
organizational structures can drop into. Organizational structures can be high, this meaning are
multiple layers between the company's entry-level employees and top managers. They can be
quite flat, meaning there are very few levels between workers and management. (CFI
Team,2022)

Categorization of Organizations

 Size
 Life cycle
 Business environment
Classifies business organizations according to ownership

 Private Sector
 Public Sector
 Voluntary
 Charitable/Non-Profitable

1.1.1. Private sector

The private sector refers to the part of a country where individuals and the economy are
governed by a system rather than the existing government. Most of the organizations in this
sector are run for profit.

In an enterprise economy, since the individual sector is large, the government has imposed few
restrictions on these businesses. In countries with more population and more government control,
such as China, the economy is largely driven by the public sector.

An industry or business may start out in one sector and move to the other. The act of turning a
publicly-run enterprise over to private citizens is known as privatization.

Characteristics of Private sector

 Profit Motive
 No State participation
 Private Finance
 Independent Management
 Private Ownership Control

Profit Motive

The main purpose of private sector undertakings is earning profits. Profits provide the reward for
the risk assumed and the required return on capital.
No State Participation

There is no participation by the Central or State Governments in the ownership and control of a
private sector undertaking.

Private Finance

The sole trader contributes the Founds of a sole proprietorship. In case of partnership, capital is
invested by the partners. The capital of a private sector undertaking is arranged by its owners.

Independent Management

A private sector undertaking is managed by its owners and case of sole proprietorship and
partnership, the owners directly manage the firm. The management of a joint stock company lies
in the hands of directors who are the selected representatives of the shareholders.

Private Ownership Control

A private sector undertaking is fully controlled and owned by the private entrepreneurs. It may
be owned by one individual or by a group of individuals jointly. When owned by one person, it is
called Sole Proprietorship. A group of persons may jointly own the firm in the form of joint
family business, partnership, involved Stock Company or cooperative society.

Furthermore, on Private Sector

There are numerous types of undertakings in the private sector. private sectors divided into
various types of businesses, such as Sole Proprietor, Partnership, Limited companies,
Cooperative, Franchise, and Charities.

Sole proprietor

A sole proprietorship is an unincorporated business that one owns and manages. It is also known
as individual entrepreneurship, sole trader, or simply proprietorship. As the business and the
owner are not legally separate, it is the simplest form of business structure. The owner, also
known as a proprietor or a trader, conducts business using their legal name. They may also
choose to do business using another name by registering a trade name with their local authority.

A sole proprietorship begins and ends when the business owner decides, or upon their death

A sole proprietorship may transform into another, more complex business structure if the
business grows substantially. (Lip, 2022)

Sole proprietorship is more popular business form because of its simplicity, ease of setup, and
nominal cost. What a sole proprietor needs to is, only register their name and secure local
licenses. After that a sole proprietor is ready for their business. However, a disadvantage is that
the owner of a sole proprietorship remains personally liable for all their business's debts. So, if a
sole proprietor business goes to a financial trouble, creditors can bring lawsuits against the
business owner. If such suits are successful, the owner of the business will have to pay the
business debts with their own money.

The advantages of a sole proprietorship

• Owner can easily establish a sole proprietorship with instantly and inexpensively.

• Sole proprietorships carry little, if any, ongoing formalities.

• No need of paying unemployment tax on their selves (although the owner must pay
unemployment tax on employees).
• Owners may freely mix business or personal assets

The disadvantages of a sole proprietorship

• Owner are fully subject to unlimited personal liability for the debts, losses and liabilities
of their business.
• Owner cannot raise their capital by selling an interest in their business.

• Sole proprietorships rarely survive the death or incapacity of their owners and so
do not retain value
 Partnership

A partnership is a formal arrangement by two or more parties to oparete and manage a

business and share its profits.

There are several characteristics of partnership arrangements. In a partnership business, all

partners share liabilities and profits equally, while in others, partners may have limited liability.
There also is the so-called "silent partner," in which one party is not involved in the day-to-day
operations of the business. (kopp, 2022)

General partnership A general partnership is the most basic form of partnership. It does not
require forming a business entity with the state. In most cases, partners form their business by
signing a partnership agreement.

Ownership and profits are usually split evenly among the partners, although they may establish
different terms in the partnership agreement.

Limited partnership Limited partnerships (LPs) are formal business entities authorized by the
state. They have at least one general partner who is fully responsible for the business and one or
more limited partners who provide money but do not actively manage the business.

Limited liability partnership A limited liability partnership (LLP) operates like a general
partnership, with all partners actively managing the business, but it limits their liability for one
another's actions.

The partners still bear full responsibility for the debts and legal liabilities of the business, but
they're not responsible for errors and omissions of their fellow partners.

Limited liability limited partnership A limited liability limited partnership (LLLP) is a newer
type of partnership available in some states. It operates like an LP, with at least one general
partner who manages the business, but the LLLP limits the general partner's liability, so all
partners have liability protection.

LLLPs are currently authorized in Alabama, Arizona, Arkansas, Colorado, Delaware, Florida,
Georgia, Hawaii, Idaho, Illinois, Iowa, Kentucky, Maryland, Minnesota, Missouri, Montana,
Nevada, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Dakota, Texas, Virginia,
Washington, and Wyoming.

The advantages of a sole partnership (Korchak, 2017)

• Less formal with fewer legal obligations
• Easy to get started
 • Sharing the burden
• Access to knowledge, skills, experience and contacts
• Better decision-making
• More partners, more capital
The disadvantages of a partnership (Korchak, 2017)
• The business has no independent legal status
• Unlimited liability
• Perceived lack of prestige
• Limited access to capital
• Profits must be shared
• Slower, more difficult decision making

Private limited company

Private company is a firm held under private ownership. This companies may issue stock and
have shareholders, but their shares do not trade on public exchanges and are not issued through
an initial public offering. As a result, private firms do not need to meet the Securities and
Exchange Commission's strict filing requirements for public companies.

In general, the shares of these businesses are less liquid, and their valuations are more difficult
to determine.

In Private limited company directors, known as company officers, manage limited companies
and they can be shareholders as well. A limited company must have at least one director and
most company owners are directors. Examples for private limited Companies

 Hayleys PLC
 John Keells Holdings
 Ceylon tobacco company
 Seylan bank
 Nestle Lanka PLC

Advantages of private limited company

 Limited Liability.
 Tax Advantages.
  Finance and Resources.
 Business Continuity.

Cooperatives
A cooperative may be a private business that's owned and controlled by the people that use its
products, supplies or services. Although cooperatives vary in type and membership size, all were
formed to satisfy the precise objectives of members, and are structured to adapt to member's
changing needs. (Sfp.ucdavis.edu, 2021)

• Agricultural cooperatives
• Business cooperatives
• Child care and preschool cooperatives
• Housing cooperatives
• Insurance cooperatives
• Student cooperatives
• Utility cooperatives
• Worker cooperatives

Franchise
Franchising means where one party what is called franchisor, granting or licensing some rights
and authorities to another party called as franchisee. For a business expansion, franchising is a
well-known marketing strategy (topper, 2021).

A contract basic agreement takes in place between Franchisor and Franchisee. Franchisor
authorizes franchisee to sell their products, goods, services and provides rights to use their brand
trademark and name. And the franchisee acts like a dealer in here.

As return, the franchisee has to pay a one-time fee or a commission to the franchisor and a few
shares of revenue. Some advantages to franchisees are there is no need to spend money on
training employees, they get to find out about business techniques.

For instance, numerous fast-food chains like KFC, McDonalds, Burgerking, Pizza hut, Dominos,
Basking Robbins are operate in Sri Lanka through franchising.
Advantages to a franchisee
• All costs, trial & error has been already analyzed and a clear model is already
implemented.
• Lower commercial failure rates.
• Back up from already experienced persons
• Access to known technology
• Only have to maintain already established brand name and customer loyalty.

Disadvantages to a franchisee
• Lack of independence
• Have to follow the mother companies‟ requirement
• Policies and procedures set by franchiser should be followed
• Paying on going fees
• Inter connected business, that means when someone does wrong will ruin the reputation

Voluntary Organization
The Voluntary Sector is usually involved in organizations whose purpose is to assist and develop
society, often without profit as a purpose and with little or no government involvement. Not just
like the private sector. Money raised or earned by an organization within the voluntary sector is
typically invested back to the community or the organization itself. There are many voluntary
organizations like,
Charities eye care hospital, English language school
Foundations Samanala valley Foundation
Social welfare Organization The hospital specializes in cataract surgery at no cost to the
patients
Faith based Organization hospital, school
Community Child, Neighborhood

Charitable/ Non – Profitable Organization

There are different types of nonprofit organizations, as an example homeowner associations and
clubs are organized as mutual benefit nonprofit corporations because they serve their members‟
collective interests but don‟t benefit to the general public. Those nonprofits that do benefit to the
general public are typically the best-known kind of nonprofit. and those organizations called the
charities. (Forester, 2019)

• Support Sri Lanka Foundation

• Helpage Sri Lanka
• Shanthi Community Animation Movement
• Sri Lanka Charities
• ManusathDerana Foundation

1.1.2. Public Sector

The public sector is a part of the economy that comprises all companies that are owned and by
the government. This included everything from schools and hospitals to roads and bridges. The
main goal of the public sector is to provide services that are considered essential for the well-
being of society. These services are typically provided free of charge. (Privancysense.net, 2016)
The public sector is a part of the company that providing various government services.

Public sector contribution is high in any country. The public sector includes,

Fire service

Emergency service

Social service

Police

Military

Health service

Public education

The public sector might provide services that no – payer such as street lighting services which
benefit all of society. Organizations and businesses that are not part of the public sector those are
part of the private sector.
The organization of the public sector can take, Direct government funded through taxation.
There are three main types of public sector organizations,

Departmental Undertakings
corporations Government Public corporations/statutory
Companies

Department Undertakings

The departmental undertaking is the previous and traditional form of an organization of the
public sector enterprise. It is organized, financed and controlled in such a manner that any other
government organization.

There a is under the control of a minister who is responsible to the parliament. As a examples,

Railways

Post and Telegraph

Radio

Door darshan

Features of Departmental Undertaking

Audit and Accounting: Normal budgeting, accounting and audit procedures are applicable
to departmental undertakings just like government departments.

Managed by Civil Servants: The departmental undertakings are managed by the civil
servants, who are subject to the same services condition as applicable to civil servants of the
government.

Sovereign immunity: Without the consent of the government, a departmental undertaking

cannot be sued at all.

Advantages of Departmental Undertaking

Provides easy information

It is easy to set up departmental undertaking. The departmental undertaking is created by an

administrative decision of the government, involving no legal formalities for its formation.

Direct control over Parliament or State Legislature

The departmental undertaking is directly responsible to the parliament or the state government
through its overall head i.e., the minister concerned.

Tax on the Public is lesser

Earnings in this department are paid into government treasury, resulting in the lesser tax burden
on the public

Tool for social change

The economic activity and social justice can be promoted by the government through
departmental undertaking. It can be used by the government, as a tool for social change.

Avoid misuse of Government Treasury

The officers of the departmental undertaking are under the direct administrative control of the
ministry. They are guided by the rules and regulations of the ministry, framed with a focus on
public welfare.

Public Corporation/ Statutory Corporation

A statutory corporation is a body corporate formed by a particular act of parliament or by the

central or state legislature. It is fully financed by the government. Its powers, objects, limitations
etc. are also decided by the act of the council. The best example is Sri Lanka Air Lines. (toppr,
2021)

Features of a Public Corporation

Public corporations are under an act of parliament or central or state legislature. The powers,
objectives & limitations of a municipal corporation are defined in action only. Under total
control of primary or state government operations of public corporations takes place. A
municipal corporation is a separate legal entity. It gets incorporated automatically when the act
is passed in the parliament. (toppr, 2021)

Advantage of a Public Corporation

A public corporation can manage its affairs with independence & flexibility. A public
corporation is relatively free from red tape, as there is less file work & less formality to be
completed before taking decisions. The activities of the public corporation are discussed in
parliament. Ensures the protection of public interest. (toppr, 2021)

Government Companies
The company in which at least 51% of the paid-up share capital is held by the central or state
government or partly by central or state government is Government Company. The government
companies are governed & ruled by the provisions of the companies act. (toppr, 2021)

Features of Government Company

• Registration: The government company gets incorporated under the companies act. All
the provisions of companies‟ act apply to a government company.
• Ownership - The government company is wholly or partly owned by the government.
The share capital of these companies is owned by the government of Sri Lanka.
• Management - The government is managed by the board of directors, who are nominated
by the government & other shareholders. The government has the authority to appoint a
majority of the directors.

Advantage of Government Company

The government company is relatively free from government & political interference. The
government company is managed, financed & audited just like any other private sector
company. It can, therefore, secure greater flexibility, freedom of operation & quickness of action
in running the enterprise. The government companies can avail & accommodate managerial
skill, technical know-how or expertise of the private enterprise by conveniently collaborating
with it. (toppr, 2021)

1.2 International Business environment

International business refers to trading services and goods in a worldwide market. It can also be

recognised as the globalisation of trade. An International Business Environment (IBE) refers to

the surroundings in which international companies carry on their businesses. It plays a critical

role in the development and growth of a country.

An International Business Environment (IBE) involves different aspects like political risks,

cultural differences, exchange risks, and legal and taxation issues. Thus, it is mandatory for the

people at the managerial levels to work on factors comprising the international business

environment as it is crucial for a country’s economy.

Difficulties in international environment

What makes global business strategy different from the domestic are the differences in the
marketing environment. The essential unique problems in global marketing are given below.
(international business, 2021)

Political and Legal

The political and legal environment of foreign markets is different from that of the domestic.
The complexity generally increases as the number of countries in which a company does
business increases. It should also be noted that the political and legal environment is not the
same in all provinces of many home markets. For example, the political and legal environment is
not the same in all the states of India.

Cultural
The cultural differences is one of the most challenging problems in international marketing.
Many domestic markets, however, are also not free from cultural diversity.

Economic
The economic environment may vary from country to country.

Differences in the Currency Unit

The currency unit varies from nation to nation. This may sometimes cause problems of currency
convertibility, besides the issues of exchange rate fluctuations. The monetary system and
regulations may also vary.

Differences in the language

An international marketer often encounters problems arising out of the differences in the
literature. Even when the same language is used in different countries, the same words of terms
may have different meanings. The language problem, however, is not something peculiar to
international marketing, for example, the multiplicity of languages in India.

Differences in the Marketing Infrastructure

The availability and nature of the marketing facilities available in different countries may vary
widely. For example, an advertising medium beneficial in one market may not be available or
may be underdeveloped in another market.

The High Cost of Distance

When the markets are far removed by distance, the transport cost becomes high, and the time
required for affecting the delivery tends to grow longer. Distance tends to increase certain other
charges also.

Growth of the International Business Environment

The global business environment may improve for a variety of reasons. They are,

Saturation of Domestic Markets

Most of the countries, due to the nonstop production of similar products over the years has led to
the saturation of domestic markets. For instance, in Japan, 95% of people have all types of
electronic appliances, and there is no growth in the organization there. As a result, they have to
look out for new markets overseas.
 Opportunities in Foreign Markets
As domestic markets in some countries have saturated, there are many developing countries
where these markets are blooming. Organizations have great opportunities to boost their sales
and profits by selling their products in these markets. Also, countries that are attaining economic
growth are demanding new goods and services at unprecedented levels.
 Availability of Low-Cost Labour
When we compare labour costs in developed countries concerning developing countries, they
are very high. As a result, the organization finds it cheaper to shift production in these countries.
This led to lower production costs for the organization and increased profits.

Competitive Reasons
Either to stem the increased presence of foreign companies in their domestic markets or to
counter the expansion of their local markets, more and more organizations are expanding their
operations abroad. International companies are using overseas market entry as a countermeasure
to increase competition.

Increased Demands
Consumers in counties that did not have the purchasing power to acquire high-quality products
are now purchasing them due to improved economic conditions

Change
To countercyclical patterns of business in different parts of the world, most of the companies
expand and diversify their business, to attain profitability and uncover new markets. This is one
of the reasons why international business is developing at a rapid pace.

Development of communications and Technology

Over the last few years, there has been a tremendous development in communication and
technology, which has enabled people sitting at their homes in one part of the world to know
about the demands, products, and services offered in another part of the world. Adding to this is
reducing the cost of transport, and improved efficiency has also led to people expanding their
business.

Consumer Pressure
Innovations in transport and communication lead to the development of more aware consumers.
This has directed consumers to demand new and better goods and services.

The pressure has led to companies researching, merging, or entering into new zones.

1.3. Overview of Three Different Organization

1.3.1 SLT Mobitel

SLT-Mobitel is Sri Lanka’s National Mobile Service Provider and a fully-owned subsidiary
of Sri Lanka Telecom. The company offers mobile telephony services, high-speed broadband,
Enterprise Solutions, IDD Services, Mobile Money (mCash) and a host of Value Added Services
SLT-Mobitel was the pioneer in South Asia to launch the first Super-3.5G HSPA network in
South Asia in 2007, and subsequently trialed HSPA+, MIMO (Multiple Input Multiple Output)
in 2009, another first in the region, Mobitel went on to demonstrate 4G-LTE technology also for
the first time in South Asia in 2011. Accordingly, SLT-Mobitel launched its 4G-LTE Network
in 2013 to provide unparalleled broadband experience to Sri Lankans. Keeping ahead with
pioneering new technologies, SLT-Mobitel trialed 4.5G LTE-Advanced Pro Technology with
CA (Carrier Aggregation) of three bands, again for the first time in South Asia in 2016. In 2017,
SLT-Mobitel was able to deploy the first Sub-1G Mobile Broadband Network in Sri Lanka
based on 900MHz spectrum innovatively to provide superior coverage some rural areas of the
country. In 2018 Mobitel launched the First Commercial 4.5G/4G+ Mobile Network in South
Asia.

Company vision

“All Sri Lankans seamlessly connected with world-class information, communication and
entertainment services."

Company Mission

"Your trusted and proven partner for innovative and exciting communication
experiences delivered with passion, quality and commitment"
Company values

Customer caring innovative

Responsive
Teamwork
Excellence
Results Driven
Trustworthy

Organizational Structure of SLT Mobitel

Figure 1 (organizing behavior)

1.3.2. Independent Television Network

The pioneer television station in Sri Lanka. Started operations on 13th April 1979 with very
modest beginnings, and very basic equipment comprising a 1KW transmitter and a 65 foot
antenna mast, ITN beamed programs to radius of about 15 miles in and around Colombo. On 5th
June 1979 ITN was converted to a government owned business undertaking, under a competent
authority. In 1992 ITN was converted to a public company under state jurisdiction.
 ITN is a Sri Lankan state governed television and radio broadcaster located
in Wickramasinghepura, Battaramulla ITN channel is also the first 1080p full HD television
channel in Sri Lanka. The ITN Ltd has invested Rs. 200 Mn on the construction of the country's
first HD studio complex and started high resolution broadcasting since 30 June 2016.

Company vision “To be the leader in Electric Media”

Company mission “Product and telecast quality, attractive and people friendly media content
consistent with the Sri Lankan values and culture”

Company values

 Creative
 Courageous
 Supportive
 Accountable

Organizational Structures of ITN

Executive board

Chairman - Shan Wickremasinghe

CEO - Chandana Thilakarathne

Board Member – Wimal Sikumara ketipearachchi, Dananjaya Arandara , Asanka Apouro

Figure 2 (organizational chart)

1.3.3. Samanala Valley Foundation

The Samanala Valley Foundation is a charitable trust consisting of a charity eye care hospital a
sustainable tea estate and an English language school. We are a privately registered charitable
trust and NOT an NGO – with a special designation granted by the Sri Lanka government.

The samanala Vallet Foundation also has a non profit English language school based in the
capital city of colombo with over 10,000 students graduating so far.
It all began in 1995 when an expatriate of European/Sri Lankan background and his British wife
returned to the island of his birth after 38 years in the UK and established a charity called the
Samanala Valley Foundation. The word ‘Samanala’ means butterfly and was found to be a fitting
description for the beautiful fauna and flora of the area. (samnala valley foundation,2022)

Company vision

The ethos behind the project is to provide for those in need

Company mission

equally provide a place where people can participate and have the opportunity to extend their
technical and social experience through an act of personal donation, the accent here is on the
‘personal’

2. Demonstrate the interrelationship of the various functions within

an organization and how they link to organizational structure.
 2.1. Explain the relationship between different organizational functions
and how they link to organizational objectives and structure.
In an organization there are many organizational functions related to that, like Finance,
Marketing, Human Resource, Production, Sales and Research and Development. These
organizational functions are always interrelated to achieve a common goal of an organization.

The only hope of every organization is to become success. On behalf of that organizations are
used to divide one long term goal in to small tasks. After that those small tasks delivered to the
functions of the organization. As an example, a plastic manufacturing company wants to be the
leading plastic manufacture in the industry, for that they need suitable human resources. HR
department help to recruit new knowledgeable people to the organization and fulfill the needs.
And the production department focusing on manufacturing quality products. After that sales and
marketing department do the needful to up sale and market on those plastic products. All these
functions need for an organization to be successful on there own industry. Therefore, it‟s very
obvious to see that different organizational functions have an interrelationship to achieve
organizational goals and objectives.

2.1. Analyze how the structure, size and scope of different organizations
link to the business objectives and product and services offered by the
organization
Goals and objectives may be differed to an organization to an organization. And the
organizational structure, size and scope are always relating with these objectives of the
organization. As an example, when an organization needs to achieve a big goal, they need a
large structure to achieve that goal. Relating to that the scope also should be large, if the
organizational business market is large.

On the other hand, if the organization needs to achieve a small goal or objective, the number of
resources is smaller compared to a big goal. The organization needs only small number of
people, smaller organizational structure. Not only that but also the businesses like sole trader
organizations owns less market or limited target market. Therefore, the scope and the business
objectives of small types of organizations are small.
From one organization to another organization, the organization have different types of business
objectives and different products and services. According to these factors, different types of
organizations own different scope, size and structure to achieve their own business objectives.

2.3 Explain Business Functions

Business functions are the high-level groupings of a company's capabilities and processes that
describe its work. Business functions ensure an organization runs properly and does well for its
customers, employees, leaders and shareholders.

A company can have one primary business function or may have several. It is common for
companies to break down their functions across three levels when they are a service-providing
business. Take this example of a marketing firm and the levels of its offerings are

Marketing,

Promotions,

Social media ,

advertising and graphic design Depending on the industry or size of a company, it is possible to
have several top-level functions or even dozens or more level three functions. For example, a
graphic design company likely does not need a manufacturing department, though a furniture
company does.

Some companies set up these business functions within their own businesses as departments,
hire specialists within a field or outsource certain responsibilities to other companies to handle
them on their behalf.

2.4. The Functions and Their Interrelationship in SLT Mobitel

Explain Functions of the SLT Mobitel
Marketing
“Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large.” (American Marketing Association, 2013)
Mobitel mAdvertising allows the enterprises to reach out to their target customers
instantaneously with an assortment of digital advertising solutions, Mobitel mAdvertising has to
offer. The solution comprises of promotional SMSs, Outbound dialer (OBD) Voice
Advertisements, sponsored insertions on Missed Call Alerts, Sponsored IVR exist messages and
USSD interactive promotional Campaigns to over ten million Mobitel subscribers across the
island. 

Production

“Production is the method of turning raw materials or inputs into finished goods or products in a
manufacturing process. In other words, it means the creation of something from basic inputs.”
(My Accounting Course, 2020)

Human Resources

mHRM is a cloud based software system that incorporates number of HR functions and
processes to ensure easy and effective management of human resources via the modules such as
Human Resource Information System, Time & Attendance/Leave Management, Employee
Profile Module, Payroll, Business Intelligence as well as performance management.
 
Solution Highlights:
 
 Reduces paperwork by eliminating many manual tasks associated with HR operations.
Especially in terms of standardize the processes related to employee information.
 Improves employee self-service activities through Time and Attendance and Leave
management modules.
 User friendly interfaces with web and mobile access to the employees and administrators.
 Centralized and secure database with information accuracy to ensure the confidentiality
of the HR process.
 A cost effective cloud based solution that can be used by all Small, Medium and Large
enterprises

2.4.2. Interrelationship between the Organizational Functions

Business's functions are the things it does – production, sales, marketing, research and
billing, for example. The organizational structure defines the relationship and interactions
between the parts of your business, and identifies how the chain of command runs through the
different levels.
When get in to another organizational function, Human resource department should interrelate
with all the other departments by managing recruitments, selections, employee attendance,
salaries, performance and conducting necessary training programs for employees. As a result of
that process other departments get a most appropriate and suitable person to the organization.

Not only that, a finance department also plays a major role in the organization. As an example,
employee salary is a cost for the organization. And the total of payroll cost is important to the
finance department when making final accounts. Also finance department measure the
performance of each department using cost and profits.

According to that we can see that there is a interrelationship between each function of the
organization.

2.4.3. Analyze advantages and disadvantages of Interrelationships between

Organizational Functions and the impact that can have upon organizational
structure.
The interrelationship between organizational functions provides advantages as well as
disadvantages to the organizations. When considering on advantages organizations functions
have a link between each function, it is easy to achieve the organizational goals and objectives.
For this each functional department of the organization has a specific plan to achieve the
departmental goals. As a result of achieving the departmental goals, it fulfils the needs of the
organizational goals automatically. These interrelationship helps to get the competitive
advantage to the business as organization can manage it effectively. Not only that, it helps to
share the employee skills and knowledge through different departments of the organization. In
order to that organization can minimize the cost of the organizational functions.

As disadvantages we can consider, interrelation between the functions may affect to the whole
organizational performance. Assume that one function is failed to achieve their target, so it will
affect to the performance of other departments also. As an example, if the HR department could
not recruit someone to vacant position in the production department in right time, it affects to the
total production process. And the production failure affects to the sales, marketing and finance
departments also. And another disadvantage is that decision of a one department can be affect to
other functions of the organization. Also if the departments are failed to coordinate in effective
way, it will affect to the flow of information and performance of other departments.
2.4.4. Critically analyze the Complexities of the different type of business structures.

Organizations have different organizational structures according to the size, scope, nature of the
business. It depends on the task and responsibilities that should be fulfil by the organization.
There are three common organizational structures that are used by the organizations. Those are
functional structure, divisional structure and matrix structure.

“An organizational structure is a system that outlines how certain activities are directed in order
to achieve the goals of an organization. These activities can include rules, roles, and
responsibilities.” (Kenton, 2020)

Functional Structure

The functional organizational structure organizes the activities of a business around areas
of specialization. For example, there may be a marketing department that focuses solely on
marketing activities, a sales department that only engages in sales activities, and an
engineering department that only designs products and manufacturing facilities.  The
functional organizational structure is the dominant mode of organization in larger
companies, since these entities deal with such large sales and production volumes that no
other form of organizational structure would be nearly as efficient. It is particularly
effective in the following situations:

 Large volume of standardized product or service sales

 Reduced level of change within the industry

 Large fixed asset base

 Minimal amount of entirely new product line introductions

 Minimal changes due to fashion or other changes in taste or technology

 Competition is primarily based on cost

Functional organizational Structure

Independent television network of the organizational structures, the functional structure

departmentalizes an organization based on common job functions.

It for instance, would group all the marketers together in one the department

Matrix Structure
In this structure employees are work as teams and there is no chain of command. Matrix
structure employees can change the teams when they needed. This structure can be used in
smaller organizations as it will not suit for large scale organizations. Because it is used when
there is lack of employees to work in the organization to achieve the business goals. On the other
hand, there are disadvantages as there is no any structured way to report. Therefore, employees
get confused about the line of command. On this structure, organization has to face difficulties
when prioritizing the activities as employees are moving between projects to projects or moving
to different business functions.

Section B

Examples to demonstrate both the positive and negative

influence/impact the macro environment has on business operations

3.1 PESTLE model analysis of the macro environment within the company

Micro macro a company's marketing environment is made up of the actors

a n d f o r c e s o u t s i d e marketing that affect marketing management's ability to build and
uphold positive relationships with t a r g e t c u s t o m e r s . T h e m a r k e t i n g e n v i r o n m e n t i s
m a d e u p o f t h e m i c r o s e e i n g a n d t h e m a c r o environment. The micro
environment consists of the actors close to the company that affect its ability to serve
its customers - the company, suppliers, marketing intermediaries, customer markets and
competitors  micro environment in marketing comprises all those micro factors that affect
business strategy, decision making and performance. It is vital for business success to behavior
macro environment and macro environment analysis before decision-making process. Macro
environment factors include political, economic, social, technological, and legal factors. On the
other hand, company microenvironment factors include customers, suppliers, competitors,
employees, stockholders and media.

Political -License issued for products and services were limited

-Foreign Investments policies
-Telecommunications were turned over to acquire strength
-Political influence and direct government interventions has brought up the vital consideration of
a private company to flip into a public company

Economic -The amount a company can afford is considered as a major priority

- People now expect the solutions offered by telecommunications to be at a level that is easily
affordable
-An unstable macroeconomic environment and the trade regime took a very flopping impact on
Mobitel and the telecommunication industry

Social -There are many ethnic groups, religions and languages spoken in Sri Lanka.
Ethnic Groups
Sinhalese, Moors, Indian Tamil, Sri Lankan Tamil and other unspecified groups
Religions
-Religion can have an impact on business both directly and indirectly.
-Modes like the infants’ mortality and literacy rates can be impacts and the country has a very
potential force of people who can be highly skilled to be trained
Buddhist, Muslim, Hindu, Christian and other unspecified religions
Languages
Sinhala, Tamil and other languages
-Behavioral and the cultural morals of the Sri Lankans are different from the colonial
administration which led them to a inefficient level and to a discrimination level which is a
remark.

Technology -New technologies emerging day by day

-To initiate these technologies, colossal amounts of investments need to be made by the
company
-The launch of the first telecommunication satellite right up above the country by Mobitel has
made revolutionary impacts
-Advancements in telecommunication industry has made convenience to approach new levels of
efficiency

Environment: In this factor Mobitel need to consider public opinions in order to have great way
to excel in the market. Majority of the telecommunication companies operate under competitive
and rapidly changing environments. And Mobitel should even be ready to facilitate its customer
with exceptional products at lower cost than its competitors
Legal
The telecommunication industry is often impacted by legislation issues. Particularly issues with
the government, monopolies, and customers. But the industry has allowed importing and
exporting of telecom products (international smartphones, for example). Allowing more
development in telecom tech devices.

Environmental framework helping to understand external factors impacting organization

-Used to identify current state of the industry as well future state

4 Determine the internal strengths and weaknesses of specific

businesses and explain their interrelationship with external macro
factors.
4.1 SWOT Analysis how to macro environment decision making

4.1.1. SWOT Analysis of Mobitel

Strength
 Mobitel has the second mover advantage of GSM technology in Sri Lanka.
 Due to its strong infrastructure, it has got one of the best and far reaching mobile
telecommunication coverage.
 Relationship with the Sri Lanka Telecom.
 Extension in collaborations maintaining good relations with another Telecom
companies have enabled Mobitel to have a global approach with services such as

and Satellite Coverage & roaming.

  Mobitel Telecom has got a very aggressive marketing strategy which enables it to
have a good and stable Brand Equity.
 Company’s financial analysis proved excellent stability in financial statements
regarding investments.
 Strong Public Relationship that has been built up over the years.
 Expanded CSR initiatives increased the social value of the firm.
 High quality technical innovations has made Mobitel market Challenger in Sri
Lanka.

Weakness
 Due to the rapidly growing customer base the trends in Quality of Service are
going down by the day.
 The level of motivation of internal employees is decreasing.
 Though the investment on advertising and value addition through technical
innovation is high, there is no clear aim and idea of a broader market
Opportunity
 Telecom is one of the fastest growing sectors in Sri Lanka‟s 19.5million people
 As per estimations 4.5million users would have mobile phones by the end of
2006
 The communication industry is growing rapidly.
 Fixed line penetration is low.
 The approval and acceptability of the Value Added Services (VAS) by the users
has increased the probability and success of any new VAS initiative.
 The strategic partnership of Mobitel Telecom with ZTE Corporation and
Huawei Technologies in China
 Technology advancements especially in mobile multimedia technologies and
the advent and use of the next 4G mobile communications.
Threats
 The existence of all the other three GSM Mobile service providers poses a big
threat to Mobitel Telekom.
 India’s Bharti Airtel Ltd. has got the license to be the fifth mobile operator in Sri
Lanka and launch the 2G and 3G services in 2007.
 The three existing CDMA service providers also pose a different kind of threat.
 Rapid changes in the political, social and economic conditions as well as the laws
and regulations.
  Changes in currency exchange rates and high inflation which is inversely affecting
the global business.
 Rapid change in customer preferences and their growing needs due to high level
of customer awareness.
 Mobitel had to switch off all base station in northern province during the last few
months due to military operations by the Sri Lankan Govt. forces.

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Presentation Slides and Notes

Good morning!
I’m Kavishka Milan Here as a business analyst on the SLT Mobitel
Here are the points on which we are going to disscuss today. So come lets go on
I would like a small brief in a company

SLT-Mobitel is Sri Lanka’s National Mobile Service Provider and a fully owned subsidiary of
Sri Lanka Telecom. The company offers mobile telephony services, high-speed broadband,
Enterprise Solutions, IDD Services, Mobile Money (mCash) and a host of Value-Added
Services

Is founded 1993,
Our values are,

 Costumer caring innovative

 Responsive
 Teamwork
 Excellence
 Result driven
 Trustworthy
 Our vision “All Sri Lankans Seamlessly connected with world class information,
communication and entertainment services”
Mission
"Your trusted and proven partner for innovative and exciting communication experiences
delivered with passion, quality and commitment"
Now lets take a look on what is this business environment.

The most important aspect of any business is the business environment. The forces is the
business environment are its government, customers, media, suppliers, competitors,
economic conditions, investors, and other companies acting externally.
Business environment can be classified into 2 as internal and external environments. Under
internal environment there are value system mission, Organization structure
And on the other side the external environment is classified as micro and macro environment.
Microenvironments consist of Public, suppliers, Customers, Competitors.

And macro environment consists of Natural, Social, Legal, economic Political

In this slide you can see the swot analysis, here you can see the strength and weaknesses
Strengths
Strengths describe what an organization excels at and what separates it from the competition: a
strong brand, loyal customer base, a strong balance sheet, unique technology, and so on. For
example, a hedge fund may have developed a proprietary trading strategy that returns market-
beating results. It must then decide how to use those results to attract new investors.
Weaknesses
Weaknesses stop an organization from performing at its optimum level. They are areas where
the business needs to improve to remain competitive: a weak brand, higher-than-average
turnover, high levels of debt, an inadequate supply chain, or lack of capital.
Opportunities
Opportunities refer to favorable external factors that could give an organization a competitive
advantage. For example, if a country cuts tariffs, a car manufacturer can export its cars into a
new market, increasing sales and market share.
Threats
Threats refer to factors that have the potential to harm an organization. For example, a drought is
a threat to a wheat-producing company, as it may destroy or reduce the crop yield. Other
common threats include things like rising costs for materials, increasing competition, tight labor
supply. and so on.
let’s take a look at the pestle analysis. This included are
Political
Economics
Social
Technological
Environment
Legal
In this slide you will be able to see tools of the external environment and the factors that affect
those tools
Political Factors
These are all about how and to what degree a government intervenes in the economy. This can
include – government policy, political stability or instability in overseas markets, foreign trade
policy, tax policy, labor law, environmental law, trade restrictions and so on.
It is clear from the list above that political factors often have an impact on organizations and
how they do business. Organizations need to be able to respond to the current and anticipated
future legislation and adjust their marketing policy accordingly.
Economic Factors
Economic factors have a significant impact on how an organization does business and how
profitable they are. Factors include – economic growth, interest rates, exchange rates, inflation,
disposable income of consumers and businesses and so on.
These factors can be further broken down into macro-economic and micro-economic factors.
Macro-economic  factors deal with the management of demand in any given economy.
Governments use interest rate control, taxation policy and government expenditure as their main
mechanisms they use for this.
Micro-economic factors are all about the way people spend their incomes. This has a large
impact on B2C organizations in particular.
Social Factors
Also known as socio-cultural factors, are the areas that involve the shared belief and attitudes of
the population. These factors include – population growth, age distribution, health
consciousness, career attitudes and so on. These factors are of particular interest as they have a
direct effect on how marketers understand customers and what drives them.
Technological Factors
We all know how fast the technological landscape changes and how this impacts the way we
market our products. Technological factors affect marketing and the management thereof in
three distinct ways:
 New ways of producing goods and services
 New ways of distributing goods and services
 New ways of communicating with target markets
Environmental Factors
These factors have only really come to the forefront in the last fifteen years or so. They have
become important due to the increasing scarcity of raw materials, pollution targets, doing
business as an ethical and sustainable company, carbon footprint targets set by governments
(this is a good example where one factor could be classed as political and environmental at the
same time). These are just some of the issues marketers are facing within this factor. More and
more consumers are demanding that the products they buy are sourced ethically, and if possible
from a sustainable source.
Legal Factors
Legal factors include - health and safety, equal opportunities, advertising standards, consumer
rights and laws, product labelling and product safety. It is clear that companies need to know
what is and what is not legal in order to trade successfully. If an organisation trades globally this
becomes a very tricky area to get right as each country has its own set of rules and regulations.
One of the key responsibilities of business professionals is making decisions. The types of
selections we make in business could include - what best sales approach should be taken or what
new idea should the corporate pursue or how should a startup enter the market. In making
decisions, a good share of energy and time has to be devoted to carrying out analyses of the idea,
task, client, or organization in question. Such analysis helps with knowing the required resources
and competence to achieve whatever goal is desired. When proper analysis is completed, one
can expect the proper outcome from decisions made. SWOT quickly identifies both internal and
external factors that are either favorable or unfavorable to the decision-making process,
uncovering potential positive and negative factors to assist in analysis. Strengths and weaknesses
are often viewed from an indoor perspective, shining a light-weight specifically on what makes
organizations or specific opportunities unique.
By the end of this slide you’ll be able to know how the SWOT analysis will affect the decision
making
• Take advantage of a new business opportunity
• Respond to new trends
• Implement new technology
• Deal with changes to your competitors' operations
In this slide you’ll be able to see the positive and the negative impacts of micro environment
  Suppliers 
 Suppliers can control the success of the business when they hold power. The supplier holds the
power when they are the only or the largest supplier of their goods; the supplier’s product is a
core part of the buyer’s finished product and/or business.
Resellers 
If the product the companies produces is taken to market by 3rd party resellers or market
intermediaries such as retailers, wholesalers, etc. then the marketing success is impacted by
those 3rd party resellers. For example, if a retail seller is a reputable name then this reputation
can be leveraged in the marketing of the product.
And here the positive and negative impacts of macro environment
• Demographic forces 
•  Different market segments are typically impacted by common demographic forces,
including country/region; age; ethnicity; education level; household lifestyle; cultural
different and movements.
• Economic factors: The economic environment can impact both the organization’s
production and the consumer’s decision-making process.
• Technological factors: The skills and knowledge applied to the production, and the
technology and materials needed for the production of products and services can also
impact the smooth running of the business and must be considered.
As a conclusion
• Business environment involve internal and external environment. Business
environment is important for an organization to identify the weaknesses and
threats. A firm maybe strong in certain areas and it may be weak in some other
areas.
This my references

Thank you everyone for bearing up with me until the last slide. Thank you.