Business and Business Environment

Business and business
environment

INTRODUCTION
Business Environment includes various internal and external factors such as customer
needs, employees, demand and supply, owners, suppliers, government, technological changes,
etc. all these factors are not under the control of business but impact the organisation directly or
indirectly (Beynon-Davies, 2020). The environment is dynamic and so are businesses as they
keep on changing. There is discussion about various types of organisations that are private,
public as well as voluntary organisations and they all are different in nature . In the report there
is impact of all these on economic growth and their contribution to the economy. The models
like PESTLE and SWOT analysis are part of report and there importance in relation to
understanding the external and internal environment. John Lewis Partnership is discussed to
gain knowledge about internal and external business environment. John Lewis Partnership has its
headquaters in Westminster, London. The report deals about various types of organisations and
how they achieve their goals and objectives. The negative impact that is caused by macro factors
on operations of business.
TASK 1
P1 Various kinds of organisations with their purposes such as private public and voluntary
organisation.
The main types of organisations that exist in the market are voluntary, public and private and
they all have their own purposes which are explained below:
Public sector organisation: It includes all those organisations that are managed and controlled
by government. The government has full interference and controls the decision-making process
of such organisations. They are dependent on government to take decisions and then they carry
on their actions. BBC is undertaken in this report for studying public sector organisation.
Purpose- Their main purpose is to serve customers and provide them services while earning
enough profit that helps them to run their business effectively.
Legal structures- The three main bodies that control the legal structure of the organisation are as
follows:

Central Government: Control and management of public sector organisation is in the hand of
central government. The Environment Agency, Department for International Development, etc
come under their control and their structure are decided by them.
State Government: The organisation that are working of state level come under the control of
state government. The management is done by the state government and decisions are taken by
them (Bughin and Chui, 2017).
Local Government: The legal structure of municipal corporation that are involve under loyal
areas. They all come under the control of local government.
Private sector organisations: These organisations are separate legal entities and are not under
the control of government. They have to make decisions by their own and can manage the
organisation. John Lewis partnership is a large organisation and deals in many products and
services, they have their own super market and have loyal customer base.
Purpose- the main purpose to earn maximum profits.
Legal Structure- The legal structure for private organisation are mentioned below:
Sole Proprietorship: They have one owner and controls the business alone, the proprietor has
unlimited liability.
Partnership: The partnership means a agreement between two people that agree to share profits
and losses in the proportion they have contributed money in capital. Also the partners have
limited liability.
Companies- Company comes into agreement by following rule and regulations. The
organisations are incorporated under Companies Act, 2013. They can be public and private.
Voluntary organisations: These organisation are formed for the purpose doing charities and for
welfare of society. National Council for Voluntary Organisations (NCVO) is discussed for
understanding voluntary organisation.
Purpose- The purpose of existence of voluntary organisations is to do social welfare and not for
profitability.
Legal structure- The legal structure of voluntary organisation is mentioned below:
Unincorporated Association: The focus on charity and not on making profits.
Trust- The organisations work for the purpose of donations and profit earning is not their motive.
So above mentioned are purpose and scope of existence of different types of organisation,
it is important to understand each of them.

P2 Scope and size of various kind of business organisations.
Different organisations have different scope and size that help them to achieve their goals
and objectives. It is important to formulate policies and strategies according to organisation and
be successful in achieving the goals of the organisation. Below is the description and discussion
related to size and scope:
Public sector organisations: BBC is large organisation and has world's largest broadcaster in
sense of employees.
Size- BBC is a large organisation and has expanded business operations and have a big team.
The have around 35400 employees that include both part time and full time employees.
Scope- BBC has large scope and it does not limit only to news channels, it also includes radios,
online services and TV channels as well.
Private sector organisations: In context of John Lewis Partnership, it is a large supermarket that
deals in variety of products and services like jewellery, clothing, and they also provide financial
services.
Size- John Lewis Partnership has around 85000 employees and that shows that it is a large organ
satiation in sense of employees, These huge number of employees impact the working of
organisation.
Scope- The organisation has wider scope as the customers are more they have to take care of
their needs and wants and satisfy them (Carlucci and Schiuma, 2018).
Voluntary organisations:The discussion is about National Council for Voluntary Organisations
(NCVO) which has narrow scope.
Size- The size is small as around 14000 peole are ready to do charity in regard to this
organisation.
Scope- The scope is also small as normally people are not willing to do charity and such
businesses.
P3 The inter relationship between various organisational functions and how they are related to
organisational structure and objectives .
All the organisations perform various functions all of these are related to each other. It bis
important for organisations to make balance between them and follow all the functions
effectively. To achieve the goals and objectives it is vital to focus on all the functions and gain
success by accomplishing them on time. These functions are mentioned below: