Factors Influencing Business and its Environment

University: GBS

  • Unit No: N/A
  • Level: High school
  • Pages: 14 / Words 3375
  • Paper Type: Assignment
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Question :

This assessment covers following questions:

  • Discuss the different types, size and scope of KFC .
  • Evaluate the interrelationship of the various functions of KFC and how they link to organisational structure.
  • Implement contemporary examples to demonstrate both the positive and negative impact the macro environment has on business operations.
  • Demonstrate the internal strengths and weaknesses of specific businesses and explain their interrelationship with external macro factors.
Answer :
Organization Selected : KFC


Business surroundings is the collection of external and internal component like economic changes, innovative technologies, owner, clients and so on. All these assorted factors help firms to analyse their business opportunities into the market along with they are able to use maximum resources to give better performance at workplace. This report will identify about KFC which is one of the best American fast food restaurant and famous for fried chicken which is also called Kentucky Fried Chicken (Avramenko, 2012). Furthermore, this report includes different types of organisations and their size, scope, legal structure and so on. Along with negative or positive impinging of PESTLE analytic thinking as well as process of decision making. SWOT analysis which influence decision making of an organisation. At last interrelation of strength and weakness of external factors will explain.


Various types and purposes of firms: private, voluntary and public.

In present scenario there are several types of firms or organisation like public, private and voluntary in order to run entire business in a successful way. Therefore, different types organisations have different purposes, size and scope in order to earn profit and gives better services to people. All those organisations are given below:

Private organisation:

This organisation always manage and controlled by an individual or companies but not controlled by the government. According to this private sector organisation mainly have aim to increase their profit by giving satisfaction to people. In context with KFC it is a private organisation which specialises in fried chicken fast food chains across the globe (Andersson, Forsgren and Holm, 2015). It operates 123 territories and countries. So that there are certain structure and purposes, which are going to be discussed below:


Aim of KFC is to offer best food quality products to its customers and satisfying them happily.

Legal structure:

It includes partnership in which two or more parties comes together in order to gain profit by reducing loss. Along with sole trader is business arrangement which is owned by entire business in a perfect way. Therefore, it is helpful for KFC to have this type of culture so that they can achieve its goals.


Employees, and contracted vending companies and many more are considered as a stakeholders of KFC which provides better services to their customers to reach references goals and objectives in a perfect way (Adeoye and Elegunde, 2012).

Public organisation:

These assorted organisations always cope up with high authorities and able to survive for long duration at marketplace in order to provide unique services to people within the society. Crown Prosecution services is best public structure which is situated in England and Wales in order to conduct criminal prosecution.


To defend criminal cases which has been investigated through Police within Wales and England. Along with aim to offer legal advices to sorts of agencies and police so that they can meet with accurate information and able to accomplish mental object.

Legal Structure:

It is mainly considered as an independent judicial agency which have responsibilities to defend criminal prosecution within the U.K. Therefore, they mainly focus on family courts, criminal courts and legal profession as well with the help of this they can found better plans and strategies.


Financial institutions, governmental employees and so many rules and legislations comes under the government are stakeholders of CPS.

Voluntary Organisation

This type of firm analyse about group of individuals who mainly comes with the agreement and take participate in many activity in order to succeed objectives in a clear way (Babatunde and Adebisi, 2012). Herein, Oxfam is an alliances of 20 non dependent charitable trust which is mainly used to decrease poverty.


In order to make better solutions towards injustice poverty. So that they can make world happy without poverty. Therefore, they always aim to have take better decisions by which they can decrease poverty and able to treat people equally.

Legal Structure:

Through following legal structure it comes under trust, unincorporated association along with community interest and so on. Whereas, trusts build strong relations between firm and society along with unincorporated association refers to groups of people in which no legal existence.


If one or two people are interested they then they develop different types of ideas to remove poverty that includes beneficiaries, staff, founders and so on.

Size and scope of wide range of assorted companies.

To make better growth of business at marketplace, it is necessary for firms to have several kinds of size, scope, aims and objectives to achieve targeted goals. Some types of elements are discussed below in reference with organisations, that are:

Private Organization (KFC):


KFC basically known for their special variety of food named as Kentucky Fried Chicken as it is world's famous fast chain of America. Therefore, they have strong brand image globally and able to gain objectives across the globe (Belás and et. al., 2015).


To increase and maintain overall quality of fast food across the globe along with to established their position as leading Western quick service restaurant. It mainly includes to serve innovative chicken products to people.


To sell overall food items in a friendly and fast environment by focusing on pricing strategies as well as consumer's health.

Business Objectives:

Aim of this business is not only to sell chicken to make money or a profit, they generally want to expand their business all over the world through open up new restaurants.


Goods and services of KFC are mainly includes chicken sandwiches, fried chicken, French fries, rice bowls, soft drinks and so on.


KFC is the second world's largest fast food organisation so that it has broad size across the globe.


It operates 20,000 outlets within 123 countries, by which they can have effective scope achieve business goals and objectives (Babu, 2012).


KFC mainly follows Global Hierarchical structure as they operate large number of restaurant's chain. But the drawback of this structure is to hire knowledgable employees to take effective decisions.

Public organisation (CPS):


It was formed to offer a counterbalance in order to maximise police power under the criminal evidence act 1984 and brought Wales and England.


To provide legal advice to the police and other investigative agencies at the time of criminal investigations to decide that what type of prosecutions can be conduct.


CPS mainly work with different types of partners in order to protect public through developing safety tool for society.

Business Objectives:

The main business objectives of CPS is to develop and provide better services to people in order to make them happy (Bocken and et. al., 2013).


It always offer advice to investigators and take proper decision for betterment of society.


It has 6,000 employees within the workplace. Therefore they have different types of employees who always works together and achieve business objectives.


This organisation has effective scope in which they are able to make different types of legal advices by which they can get benefits.


They generally use effective structure by which they are responsible to conduct persecutions in a few parts of Wales and England.

Voluntary organisation (Oxfam):


Oxfam consist 20 independent charitable trust with the aim of reducing poorness from the world. It was settled in 1942 to develop happiness within economy as well as society (Hillary, 2017).


To defeat economic condition from the globe.


To formulates different types of strategies and variants to achieve goals.


It has effective size and scope by which they can survive at marketplace for long time of duration.


To gain large number of alternatives to improve standard living of people.


They utilized simple Hierarchical structure for bringing innovative tools and strategies.


State several organisational utility along with how they linkage to structure and objectives of firm.

Every organisation consist different types of department as well as functional unit in order to communicate with lots of people at business place. Along with it is helpful for firm to accomplish targeted score and objectives. Herein, KFC is required to look at environmental situation so that they can bring few innovative changes accordingly. By having interrelations between several departments makes better decision towards running business and encourage them to gain competitive advantages in a perfect way (Gupta, 2013). There are interrelation between marketing department to other functional unit in context of KFC, explained below:

Marketing and finance:

Finance department is one of the best functional unit within every organisation. It is always fulfil firm's needs and wants in a proper way. In context with KFC, this department ever interlined with marketing department. It communicate with marketing unit in order to pass any bill or budget statement for fulfilment of objectives. Therefore, it is necessary for both department to communicate with each other to take better decision for betterment of future.

Marketing and IT:

IT department always plays significant role within organisation as it operates overall activities and functions of an organisation in stipulated manner. Herein, KFC always consist both department together in order to promote their services across the globe at higher level. Therefore, this interrelationship always help company to gain competition within specific time frame (Cohen and Kietzmann, 2014).

Marketing and HR:

Human resource department mainly focus on recruit and select knowledgable and high skilled of employees in firm to increase firm's productivity as well as profits. In reference with KFC having assorted form of goods and services that managed by firm. Therefore, by having integrated functional unit like marketing and HRM both has been equally played and selects high skilled of employees in order to capture large market to gain huge profits (Carroll and Buchholtz, 2014).


Positive and negative consequence the large situation has upon enterprise operations.

Within the competitive script there are assorted variety of factors which always influence overall functions and activities of firms at marketplace. Therefore, organisation generally face positive and negative effect from them to accomplish objectives in a perfect manner. There are some factors in reference with KFC, those are given below:

Political factors:

From Kentucky Fried Chicken, This restaurant changed their name along with its identity as KFC. Therefore, it is always considered a smart move by which which they are selling healthy food to people but dropping fried chicken with their name. So that they have different types of nutritionists and campaigners as it is valuable for people and they loved it. Through changing during this factor they are able to achieve its target and create better image for future (Boons and Lüdeke-Freund, 2013).


As KFC has been played smartly so that change can keep them safe towards political stability and able to satisfy customer's demand in each and every country.


All countries have their personal regulations which is made aside their system. If KFC is not not able to follow them then they can get lose towards its goods and services.

Economical factors:

Sometimes fast food restaurant chains are not able generate huge profits. Therefore, the other reason is that in present scenario, lifestyle of people has been changing day to day so that they do not want to increase unhealthy fats. Herein KFC required to make healthy food to their customers to reduce unhealthy factors from their food items.


In order to increase healthy food items firm is able to increase their profit and sales in a proper way.


During the changing scenario of people lifestyle can be difficult for KFC to bring so many qualitative items.

Social factors:

KFC is one of the famous brand which has been developed by facing so many issues and problems at marketplace. In order to focus on this factor they always considers employees minimum wages so that they can remove negativity from their work and able to give better services to customers.


As KFC focuses on its employee's salary skills so that they cab effectively guide to their workforce which makes them attractive in front of others in a perfect way.


If KFC will not consider consumer's health then they can not able to retain targeted profit within the competitive environment (Jennings, 2014).

Technological factors:

On the basis of this factor, KFC adopting so many new technologies in order to keep changes according to trend and customer's preferences as well. In addition to this, online platforms, self-order kiosks and voice automated machines sorts of technology which all are adopted by this restaurant to increase their profits and sales.


With the help of using so many tools and technologies they can develop better image of its services or food items in consumer's mind.


If KFC will not follow trendy technologies then they are not able to achieve its goals by target.

Environmental factors:

Within the fast food industry, KFC is one of the major contributor within the environment (Hilton and Platt, 2013). To increase ample figure of health conscious technology opt they can spring finer employment to their customers and increase its value within the marketplace.


There are several sorts of conflicts which is faced by firm but by following effective tools and techniques they are able to achieve desired goals.


In order to adopt new technologies every time for making society happy can be difficult for them.

Legal Factors:

KFC manage their outlets within 140 countries by following contrary form of laws and legislations to achieve regular growth and success to gain competitive scenario in a perfect way.


With the help of several laws and legislations KFC is able to make effective services of their appropriate goods and services and able to reach desired goals.


Sometimes firm is not capable to move several laws and legislations so that it can be difficult for them to run successfully.

Related Article : Business environment analysis of Aston Martin.


Interrelationship of strength and weakness with outside macro factors.

Interrelation of various department always shows the good bond between firms and their other functional units. Therefore, decision making process is very essential for every steady in to achieve targeted goals. In reference with, KFC they mainly get influenced from strength and weakness of macro factors. There is interrelation between PSTLE and SWOT analysis has been described below:


According to this factor KFC able to follow each and every policy within the different countries by which they are able to give their better performance and satisfying each and every wants of people towards their food. It shows their strength and make them effective and attractive in front of lots of people (Savrul, Incekara and Sener, 2014). Whereas, weakness shows towards this factor is political stability which is not equal all the time that can develop some lose for this firm.


It mainly consist currency impact on firm so that money and financial issues can be created any time which is not good for KFC to survive in marketplace. But on the other side if they work properly and able to make good bond with people then it shows their strength in a perfect way.


According to the changing lifestyle people are changing their food as well so that it can impact on their services and goods which is offered by KFC. Therefore, they always use low fat items for betterment of future. So that they can reduce negative impact of this factor from economy.


By having so many new tools and technologies KFC is able to gain better services to their customers in order to give them better experience in a perfect way. So that they can make good relation with people at marketplace. On the other side if sometimes they are weak to opt new tools then its can reduce their value as well.


According to the above document it has been ended that, Business environment includes several types of factors which consist internal and external environment like employees, owners, clients, suppliers and so on. In this assignment there are so many factors which directly influence firm's functions and their operations positively and negatively as well. Therefore, firms are able to conduct marketing research in order to identify overall business situations before producing and increasing product and business in another place. Whereas, PESTLE analysis is one of the better choice which makes firm productive and encourage them to face issues and beat competitors properly. Therefore, it is important for each and every business aspect to achieve goals and objectives.

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