Business and Business Environment Report

This report examines different types of organizations, including public, private, and voluntary entities, analyzing their size, scope, and functions. It explores the impact of the macro environment on business operations and assesses internal and external factors to identify strengths and weaknesses. The report provides valuable insights into the dynamics of the business world.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of organizations.............................................................................................1
P2 Size and Scope of different enterprise...................................................................................2
P3 Functions within an organisation...........................................................................................4
TASK 2............................................................................................................................................8
P4 Positive and negative impact of macro environment on business operations of the
organisation.................................................................................................................................8
P5 Internal and external assessment to identify strength and weaknesses..................................9
P6 Interrelation of strength and weaknesses with external environment..................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business refers to a system collaborated with various departments that provide number of
services to public and corporate sectors. Businesses environment includes its size, scope and its
refers to the internal or external environment related to it. This report will be covering number of
businesses with different environmental frameworks. It will include Network Rail founded in
year 2002, Direct Health Group and British Heart Foundation (1961) as Public, Private and
Voluntary organization.
It will explain type of organizations based on its size, scope and organizational structure.
It will also apply general frameworks for assessing the macro and micro environment. Along
with it, it will mention some basic functions that persist within an organization.
TASK 1
P1 Different types of organizations
Businesses are generally get differentiated on the basis of ownership which highly refers
to the Public, Private and Voluntary organizations.
PUBLIC ORGANIZATION
Public organizations are owned by government bodies and public controlled companies.
Such as Network Rail is a transport organization of UK is an example of Public organization
which is funded and owned by government (Charter, 2017).
PRIVATE ORGANIZATION
Unlike public organizations, private organizations are not sustained by government.
Direct Health Group of UK is a private organization which is limited related to its liabilities,
profits and assets are handled by an individual entity who can be its owner or its partner. Public
organizations work for its own profit and highly drives with inclusion of internal systems.
VOLUNTARY ORGANIZATION
Voluntary organizations are basically the non- profit companies that based on the
principle of providing support to local communities. Organizations like British Heart Foundation
is a voluntary organization which is funded by charity and donations.
PURPOSE
Public organisation
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Purpose of public organizations is to provide adequate services to local communities with
the help implementation of certain plans and business activities.
Private organization
Private organizations have basic purpose of earning significant amount of profits without
the inclusion of any legal formality and partners. It runs with an aim of producing high amount
of employees and revenue generation.
Voluntary organization
Voluntary organizations run with the purpose of enriching communities and various
elements of society and accumulating surplus amount of funds to perform related organizational
activities.
LEGAL STRUCTURE
Public organization
Legal structure of Public company is basically managed or run at state, regional or local
level bodies. Network Rail is a government owned Public Limited company which has limited
level of capital requirements for service provision to public.
Private organization
Private organizations may be the sole trader, cooperation, partnership or limited liability
companies. Direct Health is a Limited liability company which is run by limited and predefined
numbers of employees and investments.
Voluntary organization
Voluntary organizations are legally structured as Trust, unincorporated association,
charity incorporated association. The selected organization British Heart Foundation is a
registered charity organization which is a non profitable company that are liable to use the
amount of charity for providing service only (Kolk, 2016).
P2 Size and Scope of different enterprise
The evaluation of the size and scope of the organisation that will lead the organization to
have a high level of assessment of the measures that can be undertaken by the organisations. This
will also lead the firm to enhance the quality of products and services that are been carried out at
the firm.
PUBLIC ORGANIZATION
2

Network rail
Size and Scope
Number of employee's 37000
Revenue generated £ 6.2 billion
Scope Rail infrastructure and assets management
PRIVATE ORGANIZATION
Direct health group
Size and Scope
Number of employees 4500
Revenue Generation £31.4 million
Scope Operating in personal care and support, care
following hospital discharge, assistance with
health needs, sitting, careers short breaks and
holiday support, support with child care,
shopping and meal preparation, escorting to
appointments/social activities, assistance with
mobility, domestic support, palliative and end
of life care, dementia care, extra care housing,
and companionship services
VOLUNTARY ORGANIZATION
British Heart Foundation
Size and Scope
Number of employees 1000
Revenue Generation £133 million
Scope Treatment and medication Heart and
circulatory diseases and their risk factors
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P3 Functions within an organisation
There are basic functional departments that exists within every type of organizations
irrespective of their size and ownership. These departments are responsible to perform specified
functions that are elementary to achieve desired business goals.
Marketing
Department of marketing within organizations performs certain strategic functions such
as Promotion and advertisements for the selected organizations. British Heart Foundation's,
marketing department is highly engaged with functions like promoting its activities, planning for
market analysis and increasing the fund raising activities with advanced advertisements.
Finance
This department performs some most fundamental functions for companies. For Network
Rail, its finance department tends to perform functions like making daily budgets, cost analysis
and accumulating other capital functions for rail maintenance. The department undergo for
activities such as developing financial reports, managing investment etc.
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Human Resource management
Organizations are directly linked with the HR functions and highly depends on the
efficiency of its workforce. Direct Health Group of UK is dependent upon HR department in
terms of the selections procedures of the healthcare professional to provide reliable services to
patients. HR department for organization is necessary to comply all activities of company based
on the legal laws applied to it. Along with HR department of Direct Health Group is also
responsible to design strategic pay structure for its employees to retain them.
Operations
Operation department of organization is responsible to manage the activities related to
logistics, production, research and development as well. At Network Rails, functions of
operation department highly relates with supply of equipment, production of related machinery
and other safety systems of railway sector (Laudon and Traver, 2016).
INTERRELATIONSHIP
All the departments are interrelated with each other on the basis of its functions. For
example, functions of marketing within Direct Health Group are highly depends on finance as it
tend to develop desired budget for promotions. Finance department is responsible to maintain
and manage its financial performance throughout the business activities (Hillary, 2017).
Operations of Network Rail has a direct relation with its Human Resource department as
it is responsible to recruit and select suitable wok forces for it. It also tends to increase
employees' loyalty towards the company by providing them secured and safe environment by
implication of health and safety laws. HR department also facilitate the operations of Network
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Illustration 1: Functions of finance department
(Source: Various Scope and Functions of Business Finance, 2018)

Rail by designing attractive compensation and benefit structure for the employees and provide
them strategic training facilities to perform high level of operational activities. Similarly, all
other department share a significant relation with each other in terms of exchange of services,
strategic plans and required products. Apart from HR and marketing, Finance and operation
department also have an elementary form of relationship that inculcate high level of suppy chain
management, uninterrupted production activities and strong budget maintenance for future
operation functions.
Such type of interrelation within each of the departments is necessary to strengthen
internal environment, capabilities and communication within departments. Due to such
interrelationship, the organizations are able to share a common goal sharing approach to work in
smooth and flexible atmosphere (Prajogo, 2016).
Organizational structure
Every businesses or organizations have a specific form of structure which follows a
proper hierarchy to maintain all the business activities.
For each Public, private and Voluntary organizations there is a significant structure which
depends upon its size and number of employees as well. The common organizational structure
are Matrix structure.
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Illustration 2: Matrix Structure of Organization
(Source: Kwach, 2018)

Matrix organisational system: This will help in proper management of the operations that will
help in proper management of the more than one organisational structure. It helps in improving
the operational structure of the organisation. This will help the organisation to produce a wide
range of products and services and this will lead the organisation to improve the functional
capabilities of the firm. This will also ensure the proper planning of the resources and operations
on a concurrent level.
This is traditional structure that do not establish connectivity within its departments in
terms of decisions. Bureaucratic organization structure is controlled by single individual who
may the founder, head, chief or trustee of organization. It is highly rigid in nature and action of
executives are dependent on the decision-making of head of the organization.
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Illustration 3: Bureaucratic Organizational Structure
(Source: Managing Organization Design, 2018)

TASK 2
P4 Positive and negative impact of macro environment on business operations of the
organisation
Covered in PPT
P5 Internal and external assessment to identify strength and weaknesses
Covered in PPT
P6 Interrelation of strength and weaknesses with external environment
Covered in PPT
CONCLUSION
Based on the assessment that is been carried out, it can be further concluded that the
proper planning of the business operation and its environment is deeply interlinked and are
required to be managed by a range of organisation. The report covers the details about various
types of organisations on the basis of the sector they operate, size and scale. Other than this, the
legal structure and purpose of the organisations are been included within the organisation. This
will help in improving the overall performance of the selected business enterprises, regardless to
size, scope and sector.
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REFERENCES
Books and Journals
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics.171.
pp.241-249.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Laudon, K.C. and Traver, C.G., 2016. E-commerce: business, technology, society.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Charter, M., 2017. Greener marketing: A responsible approach to business. Routledge.
Hair Jr, J.F., and et.al., 2015. Essentials of business research methods. Routledge.
Kljucnikov, A., and et.al., 2016. The entreprenurial perception of SME business environment
quality in the Czech Republic. Journal of Competitiveness. 8(1).
Jaakkola, M. and et.al., 2016. Is more capability always beneficial for firm performance? Market
orientation, core business process capabilities and business environment. Journal of
Marketing Management. 32(13-14). pp.1359-1385.
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