Business and The Business Environment

This presentation discusses the types and purposes of different kinds of organizations, the size and scope of different organizations, and the relationship between organizational functions and objectives. It also provides references for further reading.

Business and The
Business Environment
TASK 1

Table of Content
• Introduction
• Types and Purpose of different kinds of organisations and
their legal structure
• Size and scope of different kinds of organisations
• Relationship between organisational functions and
objectives
• References

Introduction
Business environment
refers to the external
and internal factor
which directly affects
on business operations
and functions. There
are various factors
which include
consumers, sellers,
buyers, competitors,
technologies which
impact on business. Source: The Marketing Environment.
2017.

Business environment refers to the external and internal
factor which directly affects on business operations and
functions. There are various factors which include
consumers, sellers, buyers, competitors, technologies which
impact on business.

Types and Purpose of different kinds of
organisations
A firm requires to identify various structures with different
motive, aims and objectives which directly affects the internal
and external factors of organisation. There are three sectors
which are as under:
 Public sector
 Private sector
 Voluntary organisation

Private organisation
A private organisation is owned and managed by an individual.
The sole and basic purpose of private ownership is Profit
earning.
For example, Marks and Spencer is private company which is
established in 1884 by Michael Marks and Thomas Spencer
with the motive of earning profit and it became the first retail
company. It mainly deals in Luxury Food and clothing
segments. This is a privately owned organisation and whole
decisions are taken by the managing director of the company.
It is private limited company, having limited liability of share
holders.

Public organisation
Public sector are managed and operated by governing authorities
because main reason of founding a private organization is a
development of whole society. Its major motives:
Satisfy the basic wants and needs of a whole society
Provide quality products at reasonable price.

Voluntary organisation
A group of individuals come together by their own choice to
fulfil a common purpose or goal. It is a Non profit
organisation and is mostly formed to serve its society.
For example, Oxfam was founded in the year 1942 by a
group of volunteers with a purpose to eradicate profit and
reduce injustice. It helps people to become financially
independent.

Size and scope of different organisation
Public-NHS provides services like dental, eye care, pharmacy, mental,
emergency services and many more most of them are delivered free of
cost to poor economy people. The main service and products of
organisation is health care services.
Size-It employs around 1.5 million people amongst the top five largest
workforces of world. It has qualified workforce of 150,273 doctors,
40,584 general practitioners, 314,966 nurses, 18,862 ambulance staff and
around 111,127 hospitals.
Scope-NHS is having a lot of scope, if it takes feedback and views from
society to work more efficiently.

Continued..
Private-The main objective of this company is to provide high quality
products. M&S believes in flat organizational structure.
Size-M&S has 1,433 stores around the world. It has 3,000 employees
working in it and around 65,000 people are associated with it.
Scope-It can develop its business by adopting new and innovative
techniques. This will help in introducing new products to compete in
global market spread the brand across the territories.

Continued..
Voluntary-Oxfam is an international organisation working for charity
purpose. It has 20 organisations working for it as partners and as local
communities. Large population of world is facing problem of poverty.
Size- It works for poverty around 90 countries. Oxfam has 5,300
employees and 22,000 volunteers working for it all over the world. It
will make its international programmes, working with 16 member
organisations.
Scope-It has huge scope in countries where people are below poverty
line and unable to find living shelters and food. It can provide more
employment to people and help in reducing unemployment.

Relationship between organisational
functions and objectives
There are different enterprise functions and activities which
assist in smooth running of all business operations in
effective manner that are as under:
 Sales and marketing
 Financial
 Human resource
 Administration
 Information technology
 Customer service

Contd..
Source: BPM Professional. 2014.

References
Chang, Y. Y., Hughes, M. and Hotho, S., 2011. Internal and external
antecedents of SMEs' innovation ambidexterity outcomes. Management
Decision. 49(10). pp.1658-1676.
Demil, B. and Lecocq, X., 2010. Business model evolution: in search of
dynamic consistency. Long range planning. 43(2). pp.227-246.
Dong, M., Wu, C. and Hou, F., 2009. Shortest path based simulated annealing
algorithm for dynamic facility layout problem under dynamic business
environment. Expert Systems with Applications. 36(8). pp.11221-11232.
The Marketing Environment. 2017. [Online]. Available Through:
<https://catalog.flatworldknowledge.com/bookhub/7?e=collins-ch09_s07>.
[Accessed on 13 November 2017.].
BPM Professional. 2014. [Online]. Available Through:
<http://blog.maxconsilium.com/2014/02/revisiting-business-function-
and.html>. [Accessed on 13 November 2017.].

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