business and business environment

Business and business
environment

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Types and purposes of companies sector such as public private and voluntary....................1
P2. Explain the full description of various sectors with their size and scope..............................4
M1. Examine structure, size and scope of different organisation sectors...................................7
LO2..................................................................................................................................................7
P3. Relationship among diverse organisational functions in addition to the ways they link to
objectives and structure of organisation......................................................................................7
M2. Demonstrate the advantages and disadvantages of interrelationships.................................9
CONCLUSION................................................................................................................................9
REFERENCE................................................................................................................................10

INTRODUCTION
The sum and total of external and internal environment is related to business environment
where types of organisation and businesses are available. The type of organisation involves
public, private and voluntary that are running business for different purpose. The business
environment consist factors such as customers, suppliers, clients and its competition which has
impacted on business (Vincent and et. al., 2018). New technology and innovation are used by
management of companies which help to improve the organisational productivity and
profitability. In other words, the conclusion of macro and micro factors has influences operating
situation of a company. This report is based on Bentley motors that is private sector automobile
company providing different models of car and affected the business. This will help to increase
the understanding about different types of organisation along with size, scope, legal structure,
objectives, products and services etc. Moreover, report cover interrelationship between different
department and functions of organisation.
LO1
P1 Types and purposes of companies sector such as public private and voluntary
In business environment variety of sectors are working who are selling different types of
products and services. This is important for organisation to focuses on people needs and wants
then offer products accordingly. If organisation is able to fill the needs and desire of its customer
that means it is running business and attaining the competitive advantages. The Types of
business organisation are as defined:
Private – This is consider as portion of nation’s economic system which is run by individual
and companies. These are considering those organisation which are started with self arrangement
of capital and resources to run a business. the main motive of such organisation is to increase the
and organisational profitability that helps to get the high productivity. For example , Bentley
Motors that is car manufacturing company in UK providing different cars as per customer
demand and their feasibility (Pînzaru, Zbuchea and Vitelar, 2018).
Public – This means a segment which covers under the control of government whether
state, local and national government that support the organisation to run a business for people.
There is need to follow rules and regulations which are formulated by government and not for
profits. These organisations are making larger portion of economy by contributing in the
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economical condition and providing products at lower cost. For example , British Army that is
public organisation providing security services to people (Klepac and Berg, 2019).
Voluntary – The third sector of business is voluntary where non profit and charities
organisation are running their business in order to provide social benefits. This types of
organisation also do not follow any government regulation because they are stared and running
by trustees and charity members who wants to do something well for people. For example,
National Trust that is established for places of historic interest and natural beauty. This helps to
maintain a environmental and heritage conservation in England, UK (Acar and Özşahin, 2018).
Difference between profit, not for profit and non government organisation are as defined:
Basis Private organisation
(Bentley Motors )
Public organisation
(British Army)
Voluntary
(National trust)
Definition Private sector organisation
are consist as those
company who are running
business by following the
company rules and not
working under the
government.
Private sector companies
are those company which
are established and
formulated by
government for people
welfare and giving them
benefits.
Voluntary sector
companies are started
for doing well for public
and maintaining good
relationship between
people and organisation.
Aim These are also known as
profits entity which are
providing and running
business activities for
increasing business
performance and making
higher profits.
These are also known as
non-profit making
company that aims not to
make profits. This mainly
focuses what people is
required and how they
can be satisfied.
This is non
governmental company
that is providing
products and services to
people and increase the
organisational
performance.
Purpose Purpose of private sector
is to gain higher
productivity and
profitability. Such as the
purpose of Bentley
The purpose of Public
sector that is providing
products and services
accordingly for people
welfare and social
The primary purpose of
voluntary sector is to
create social impact
instead of making
profits. This is non profit
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Motors is to sell its cars in
high range, capture high
market share and earn
higher profitability by
selling the products and
services. Moreover, main
purpose is to create
extraordinary cars for
extraordinary customers
(Purpose of Bentley
Motors. 2020).
benefits. The purpose of
British Army is Army
protects the United
Kingdom's interests at
home and abroad,
providing a safe and
secure environment in
which all British citizens
can live and proper
(Purpose of British
Army. 2020)
sector that is doing well
for people. The main
purpose of National trust
is to look after the places
of historic and natural
beauty (Purpose of
national Trust. 2020).
Legal structure of Private organisation
Sole traders – When a business is handled and controlled by single person by arranging
funds is consider as sole trader.
Partnerships – When two and more than two people are working together for running a
common business by sharing profit and capital ratio is consist as partnership (Jayant, Giri, Singh
and Luthra, 2018).
Private limited company – When number of people and member are working in
organisation up to their limited liability and share the profits is PLC company.
Franchise – To give the right of using business logo and sign for running a business in
other areas and nation is covered in private organisation.
Limited liability structure is following by Bentley Motors where number of people
are working and shareholders have limited liability of share the profits and loss.
Legal structure of Public company (British Army)
Legal structures:
Local Government - This means organisation is running business in local areas and
location by following the local government rules and permission. This also involves municipal
government structure.
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State Government – This means when business are established and running under the
rules and regulation of state government is consider as state government structure (Demil,
Lecocq and Warnier, 2018).
Central Government – This means, rules and legislation are formulated by central
government that is larger part of government sector and giving the permission to companies for
running a business effectively. In other words, holding supremacy of unitary states that allowto
companies for expanding their business.
British Army is proceeding under central government structure as it is providing
protection to people who are residing in local and national level.
Legal structure (non-governmental organizations):Amnesty International
Legal structure:
Trust – It is non profit making company where number of members are working
willingly by becoming part of charity organisation.
Unincorporated associations – This type of organisation are running by single member
after entering in to contract with other to provide people benefits.
Charitable association – This is another form of legal structure which is formulated
willingly by number of people as they help people by charity and providing other services.
National Trust is considering and following the charitable association legal structure
where it is mainly focuses on environment and natural beauty of nature that make happy
to people.
P2. Explain the full description of various sectors with their size and scope
Public Sector (British Army):-
Features Explanation
Vision The vision of British Army is to develop fight and win our
nation’s war by providing ready, prompt and sustained land
dominance by Army forces across the full spectrum of conflict.
Mission The mission of British Army as to work for being secure and
prosperous United Kingdom with its global reach and influence.
It further protects people, territories, values and interests at home
and overseas (Baker, Dant and Weaven, 2019).
Objective The main purpose of British Army is to work as a branch of
armed forces, in order to fight its nation’s war across the full
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range of military operations in support with combatant
commanders.
Background The modern British Army traces back to 1707, after the act of
Union between England and Scotland.
Product The equipment British soldier carries are ammunition, water,
food, protective tools and officially known as 90 Pattern
Webbing.
Service The British Armed Forces are professional with their strength of
147,000 UK Regulars and Gurkhas.
Size The size of British Army includes 27,250 army reserve, 36,940
volunteer reserve and 7,830 Other Personnel as on 1st January,
2020.
Scope The scope of British Army is the best piece of Kit which has got
but carries the part of its equation (Briggs, Kalra and Agnihotri,
2018).
Market Share The British Armed Force of United Kingdom defence expenditure
as a share of 2.1% in GDP at 2018.
Rivalries The rivalries of British Army are Royal Navy, British Armed
Forces and Royal Air Force.
Websites The website of British Army is www.army.mod.uk.
Private Sector (Bentley Motors):-
Features Explanation
Vision The vision of Bentley Motors is to become the world’s most
successful, fascinating and sustainable car manufacturing
company (Kiseľáková, and et. al., 2019).
Mission The mission of Bentley Motors is to provide innovative software
and services for enterprise and professional to design, build and
operate the world’s infrastructure-sustaining the global economy
and environment for improved quality of life.
Objective The main purpose of Bentley Motors is to increase sales by large
number of vehicles per year to 20,000 units by 2020.
Background The Bentley is headquartered in Crewe, England which was
founded by W.O. Bentley in 1919.
Product The product of Bentley Motors is Flying Spur, Continental GT,
Bentayga and Mulsanne (Vincent and et. al., 2018).
Service The service of Bentley Motors is automobile customisation.
Size The size of Bentley Motors includes 3,600 numbers of employees
as its working team.
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Scope The scope of Bentley Motors is to adapt and extend success by
securing jobs and inward investment into Crewe.
Profit Share The revenue of Bentley Motors is 1,119 million and 1,453 million
in 2011 and 2012 followed with its net income of 8 million in
2011.
Rivalries The rivalries of Bentley Motors are Rolls-Royce, Aston Martin
and Lamborghini (Pînzaru, Zbuchea and Vitelar, 2018).
Websites The websites of Bentley Motors is bentleymotors.com.
Voluntary Sector (National Trust):-
Features Explanation
Vision The vision of national trust is to value human diversity and
enables powers for full participation of Persons with Disability to
live independently with dignity, equal rights and opportunities.
Mission The mission of National Trust is create good environment by
providing opportunities for Persons with Disability through
comprehensive support system which will lead towards
development of an inclusive society.
Motto The motto of National Trust is for everyone, for ever.
Background The National Trust was founded on 12th January, 1895 by Octavia
Hill, Sir Robert Hunter and Hardwicke Rawnsley (Klepac and
Berg, 2019).
Product The scheme also provides an incentive to the Registered
Organisation (RO) based on the sales turnover of products made
by PwDs.
Service The National Trust shall fund RO participation in national,
regional, state and district level events such as fairs, exhibitions,
etc.
Size The National Trust is largest private landowner in United
Kingdom with its holding accounts for more than 610,000 acres
(250,000ha) or 985 square miles, mostly of countryside and
covering nearly 1.5% of total land mass for England.
Profit Share The revenue of National Trust is US $494 million in 2015.
Rivalries The rivalries of National Trust are English Heritage, Royal
Society for the Protection, YHA (England & Wales).
Websites The websites of National Trust is nationaltrust.org.uk
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M1. Examine structure, size and scope of different organisation sectors
The public, private and voluntary organisation are different in size, scope, objectives and
purpose who are working in different method in order to attain their business goals. Private
organisation are running for earning profits, public for social welfare and voluntary for people
benefits. All companies are managing and following legal structure by offering variety of
products and services. The size of Bentley motor is larger that is selling cars at larger range, the
size of British Army is moderate who is providing protection to UK’s people and National Trust
is larger in size that provide clean and natural environment to people which make feel good
(Acar and Özşahin, 2018).
LO2
P3. Relationship among diverse organisational functions in addition to the ways they link to
objectives and structure of organisation
Organisational function – The functions of organisation ar e different as all companies
are not providing same products and services. This is important for organisation to focuses on
various functions and performs them effectively so a business can be run effectively. The
manager of organisation is responsible for all activities and functions which has impacted on
business positively and increase profitability. For instance, Bentley Motors is automobile sector
private company that is selling the cars of different designs by tar getting audience and
customers. This is manufacturing organisation where different types of functions areas are
required to perform the activities and maintain the high productivity. All functions in this
organisation are interrelated with each other and all functions which helps to complete the goals
properly and maintain the high profitability (Jayant, Giri, Singh and Luthra, 2018). The HR
manager are playing essential role as it understand the needs of all department and recruit
employees for performing the functions efficiently.
Organisational structure – The structure of organisation is associated with system that
highlights how some and specified activities are directed for the purpose of attaining the business
goals. If organisation is following the appropriate structure that means it is performing roles and
responsibilities effectively that helps to attain goals. This structure dictates how information and
ideas between employer and employees should be flow in a format and how they can perform
activities by sharing the data and information. For instance the main object of Bentley Motors is
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to capture high market share, brand image and profitability by producing new design of cars that
can help to take the competitive advantages. For attaining such objectives the management and
employee are following a appropriate organisational structure by flowing the information:
Functional structure – The relation of such structure with number of people who are
working in a grouping on the basis of specification, skills, qualification, knowledge and
experience that that helps to perform well by completing task.
Matrix organisation - The relation of such structure is with superiors where employees are
required to give report their superior who are more than. This is lengthy structure that take times
to make right business decision. Herein, flow of information is not directly (Demil, Lecocq and
Warnier, 2018) .
Strategic business units – Such structure is related with flow of information which a proper
planning is required to maintain the flow of information and decision making. Mainly this
structure is adopted by small companies where less number of employees are working.
Bentley Motors is following the functional organisation structure where all employees and
employer share their information in a proper format and directly that helps to make the right
business decision and increase the organisational productivity by attain9ing the business goals.
The interrelation between different functions in context to Bentley Motors that is following
functional structure are as defined:
Finance and marketing – To perform any activities, buying raw material, payment of
employees, using innovation and others finance is required that fill all needs. Marketing is uses
to inform people and give them right information regarding products and services. In Bentley
motors, marketing is interrelated with finance such as when ever there is required of fund to
advertisement inform public and introducing new cars fund is needed which are provided by
finance department that helps to fill the requirement. And without marketing, finance
arrangement is not possible as it attracts customers and encourages them to buy the products.
Moreover, Functional structure is uses by both department to share the information effectively
(Baker, Dant and Weaven, 2019).
Human resources and operation department – To identify, recruit, organising directing
and controlling the business activities HRM department is playing vital role who provide job
opportunities and complete the task. Operation department is looking day by day activities and
performing them effectively that help to complete the task. In Bentley Motors, HRM department
8

is performing role by recruiting employees for operation department by identifying skills and
abilities of employees who are willing to work in operation department. And operational
functions helps to perform the daily activities so goals can be attained as higher productivity and
brand image (Briggs, Kalra and Agnihotri, 2018).
IT with marketing – Technical department in automobile sector is highly important which
perform role and responsibilities by brining innovation and new technology in their products,
distribution process and supplying the products. Marketing department is famous to attracts
people and encouraging them to buy the products and services so activities can be complete in
certain period of time. In Bentley Motors, manager of IT department bringing innovation and
new technology in their organisation for the purpose of making new car models and running a
business effectively. As such organisation is following the functional structure where IT
department connects with marketing function and attracts people by informing regarding new
card and easy supply that increases number of customers and make higher profitability.
M2. Demonstrate the advantages and disadvantages of interrelationships
Interrelationship is important for organisation where all activities and functions can be
perform in a proper ways and format so employer can get their objectives. Bentley Motors is
using interrelationship that is beneficial for its as it helps to perform all function in certain time,
attainment of business goals, completing task and getting the competitive advantages by
performing the activities in relation to HRM, Marketing, production, IT and operation that all rae
increasing organisational brand image and market profitability. On the other side, disadvantages
is there is chances of miscommunication, though difference, employer behaviour and conflicts
between employees of different department that can reduce company profits (Kiseľáková, and et.
al., 2019).
CONCLUSION
From the report it has studied and concluded that different types of organisation are
running business that have different purpose, scope, size, and objectives. They are following
different legal structure that helps to run a business effectively and increase productivity. there is
close relationship between HRM, marketing, finance, IT, operation and production department
that helps to run a business seffectievly and increase the performance by attaining the business
goals.
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REFERENCE
Books and journal
Kiseľáková, D., and et. al., 2019. Competitiveness and Its Impact on Sustainability, Business
Environment, and Human Development of EU (28) Countries in terms of Global Multi-
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Briggs, E., Kalra, A. and Agnihotri, R., 2018. Contrasting effects of salespeople’s emotion
appraisal ability in a transaction-oriented environment. Journal of Business & Industrial
Marketing.
Baker, B. L., Dant, R. P. and Weaven, S. K., 2019. An empirical examination of the dark side of
relationship marketing within a business-to-business context. In Handbook of Research
on Distribution Channels. Edward Elgar Publishing.
Demil, B., Lecocq, X. and Warnier, V., 2018. “Business model thinking”, business ecosystems
and platforms: the new perspective on the environment of the organization. M@ n@
gement. 21(4). pp.1213-1228.
Jayant, A., Giri, V., Singh, P. K. and Luthra, S., 2018. A state-of the-art literature survey of grey
relational analysis applications in competitive business environment. International
Journal of Industrial and Systems Engineering. 30(4). pp.425-448.
Acar, A. Z. and Özşahin, M., 2018. The relationship among strategic orientations, organizational
innovativeness, and business performance. International Journal of Innovation
Management. 22(01). p.1850009.
Klepac, G. and Berg, K. L., 2019. Proposal of analytical model for business problems solving in
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Applications (pp. 618-638). IGI Global.
Pînzaru, F., Zbuchea, A. and Vitelar, A., 2018, September. Knowledge Transfer from Business
to Public Administration in Smart City Development. In Proceedings of the 19th
Conference in Knowledge Management (Vol. 2, pp. 700-707).
Vincent, O.R., and et. al., 2018. A self-adaptive k-means classifier for business incentive in a
fashion design environment. Applied computing and informatics, 14(1), pp.88-97.
Online
Purpose of Bentley Motors. 2020. [Online]. Available through:
<https://www.bentleycareers.com/en/about.html>
Purpose of British Army. 2020. [Online]. Available through:
<https://www.army.mod.uk/>
Purpose of national Trust. 2020. [Online]. Available through:
<https://www.nationaltrust.org.uk/about-us>
(Vincent and et. al., 2018) (Pînzaru, Zbuchea and Vitelar, 2018) (Klepac and Berg, 2019)
(Acar and Özşahin, 2018) (Jayant, Giri, Singh and Luthra, 2018) (Demil, Lecocq and Warnier,
2018) (Baker, Dant and Weaven, 2019) (Briggs, Kalra and Agnihotri, 2018) (Kiseľáková, and
et. al., 2019)
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