Business and Business Environment

Business and Business
Environment

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Task 1...............................................................................................................................................3
P1 Different types, purpose and legal structure of Public, Private and Volunteering
organisation.................................................................................................................................3
P2 The size and scope of a range of different types of organisations.........................................5
M1 Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation................................................7
P3 Explain the relationship between organisational functions and how they link to
organisational objectives and structure.......................................................................................7
M2 State the advantages and disadvantages of interrelationship between organisational
functions and their impact upon organisational structure...........................................................8
D1 Provide a critical analysis of the complexities of different types of business structures and
the interrelationships of the different organisational functions...................................................8
Part 2................................................................................................................................................9
P4/ M3 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................9
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses..........................................................................................................11
P6 Explain how strengths and weaknesses interrelate with external macro factors.................12
M4 Apply appropriately SWOT/TOWS analysis and justify how they influence decision-
making.......................................................................................................................................13
D2 Critically evaluate the impacts that both macro and micro factors have upon business
objectives and decision-making................................................................................................13
Conclusion.....................................................................................................................................14
REFERNCES:................................................................................................................................15
Books and Journals:..................................................................................................................15

Introduction
Business environment consist of all those factors which impacted upon a company. There
are two types of business environment internal and external business environment (Contractor,
and et. al., 2020). Internal business environment consist of relationship of employees and
management teams, rules and policies of organisation, organisational structure and many others.
On the other hand, external business environment consist of political factor, technological
factors, social factors and many others. Mark and Spenser Group Plc is an famous multinational
retailer in UK which is founded in the year 1884 by its founders Michael Marks and Thomas
Spenser. It is headquartered in London, UK. New Look is an private retailing company which is
founded by Tom Singh in the year 1969. It has approximately 570 stores. Oxfam is an
volunteering company which was founded in the year 1942 which is headquartered in Nairobi,
Kenya. They work for alleviation of global poverty. The following report covers different types,
purpose and legal structure of above three mentioned companies, size and scope of different
companies, relationship between different organisational functions and the ways that they link to
organisational objectives and structures, positive and negative macro environment upon business,
micro and macro environment of specific organisation to identify their strengths and weaknesses,
relation of strengths and weaknesses with external macro factors.
Main Body
Task 1
P1 Different types, purpose and legal structure of Public, Private and Volunteering organisation
There are different types of business whose main aim is to earn profit and achieve
success in their industry (Cepel, 2019). Every business has some different purpose, types and
legal structure which are mentioned below-
Public Organisation- These are those organisations which are under control of
government and government has full right to take decisions for public organisations. They offer
those goods and services to the customers which help them to develop their living of standards.
They operate their business with those money which is raised by taxes.
Purpose- The main purpose of public organisations is to provide good quality of products and
services to customers at lowest prices so that those customers will develop their life standards

who are lacking behind to gain essential resources from private institutes (Jonathan, Rusu and
Perjons, 2019).
Legal structure- There are overall three legal structures of public organisations which are
explained below-
Central government- It is the type of regulatory body of public organisations which has power
all over the nation. It can take decisions and their decisions are supposed to follow by every
public company. They solve the issues and problems of companies at international level.
State government- This regulatory body has power to take decisions on state level. They all
information on state level and passes to central government in case they are unable to solve the
issues at their own state.
Local government- It has the responsibility to manage local areas like districts and towns to
solve all issues of customers within their district (Acklund and Davidsson, 2021).
Private organisation- These are those organisations which make their own decisions
and government bodies has no power to interfere in their decision making process. New Look is
the company which is opted as an private organisation which manage their funds and all
operational activities by their own way which ever they suits best for their growth.
Purpose- The main purpose private organisations is to earn maximum profit by adopting any
strategy or business model of their own choice (Sta, 2018).
Legal structure- There are three types of legal structures of Private companies which are
discussed below-
Sole Proprietorship- It is the type of business which is owned by a single owner and all
decisions and operational activities are done by single person.
Partnership- It is a type of company which is owned by two or more owners together to share
profit and losses according to their agreement. The role and responsibilities of partners also
divided among themselves after signing their partnership agreement.
Companies- These are the separate entity of their owner which has many employees and it is
divided among department wise (Samantaray, 2017). Here, a board of directors are elected by the
members of companies to take necessary decisions for the growth of their business. Board of
directors also has power to control the business and business activities. New Look has many
departments and a huge number of employees which is controlled by the board of directors.
Hence, New look has company structure in private organisation.