Types and Purposes of Organisations in Business Environment

This document provides an overview of different types and purposes of organisations in the business environment. It explains the relationship between different organisational functions and how they link to organisational objectives and structure. It also identifies the positive and negative impacts of the macro environment on business operations, supported by specific examples. The document focuses on Greenergy international Ltd, a massive producer of road fuel, and British broadcasting, a public service provider.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK-1............................................................................................................................................4
P1. Explain different types and purposes of organisations; public, private and voluntary
sectors legal structures and their structure.............................................................................4
P2. Different size and scope of range of different types of organisations..............................6
TASK 2............................................................................................................................................8
P3. Explain relationship between different organisational functions and how they link to
organisational objectives and structure..................................................................................8
TASK 3............................................................................................................................................9
P4. Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples...........................................................................9
TASK-4..........................................................................................................................................13
P5. Conducting internal and external analysis of specific organisations in order to identify
strengths and weaknesses.....................................................................................................13
P6. Defining strengths and weaknesses interrelated with the external macro factors..........14
REFERENCE.................................................................................................................................18
.......................................................................................................................................................19

INTRODUCTION
Business environment is the actual condition of business or potential to run the firm in
the market for longer duration. Any person connected with such commercial work frame, knows
its basic nature and function. All such groups have ultimate goal to full-fill of achieving targets
which will comprise of monetary benefits. Also increase in intangible assets, globalisation and
most importantly being available and reachable to all consumers. In general organisations are
modified in three categories such as Private, Public and Voluntary company (Dima, Grabara
and Modrak, 2014) .
Greenergy international Ltd is massive producer of road fuel in world, its dominating its
field market. Its present position was published in fortune 500, ranking 474 position of being
largest organisation in context of revenue generated by it every year. This following file will
cover all aspects of business environment like its types, management, critical analysis, purpose
and case scenarios to understand its concept briefly. It will also cover all aspects of managerial
working by PESTEL & SWOT methods.
TASK-1
P1. Explain different types and purposes of organisations; public, private and voluntary sectors
legal structures and their structure.
Private organisation: these are such firms that are not regulated by govenmetn and
owner or director is responsible for the decision made in the firm (Tutunea and Rus, 2012).
Agenda of such firms is to raise profit and gain competitive advantage Greenergy international
Ltd is huge group of producing fuel, well established in nature and is currently working in four
countries.
Different divisions of organisation in private sector:
Sole proprietorship: Single person owned the firm and take all necessary decisions.
Capital investment in such companies is low and generally these are small business outlets.

Partnership: When two or more people come up with an idea and gain monetary benefits
together start partnership firm, here the duties, profits and debts all are shares at pre-decided
ratio.
Limited liability company: The firm is separate legal entity from its owner, which pays
taxes on its name.
Legal structure of private Ltd: there is no specific legal direction for private companies,
but it is essential to pay tax if it is run by company’s name. It is essential to have legal
registration of firm and company can sell shares to generate capital.
Public Organisation: such companies are regulated by government and sell their shares
in stock exchange. Ownership and controlling is in the hand of government. Purpose of such
firms is to offers quality material at affordable rate to consumers. British broadcasting is public
service provider, based in Westminster, London..
Voluntary organisation: These organisations work for betterment of society fully as not
compared to any other organisation. They work for betterment of society and Generate work and
money for people. Wellcome trust is research trust residing in London, established in 1936 to
render services to fund highly intellectual people and research in health care of humans and
animals. It supports projects funds for people who are doing work for betterment of society.
Its different division of structures are mentioned below:
These companies work for public welfare, trust, NGO are working as voluntary
organisation. There are volunteers those who make group and form a legal firm that works for
social wellbeing (Rose, Orrenius, and Neumann, 2013).
P2. Different size and scope of range of different types of organisations.
Private: At Greenergy international Ltd they work together for personal benefits and
generating revenues. It supplies 15 billion litres of fuel every year including 50% of bio-fuel in
United Kingdom. Possibilities of becoming globally dominant are real mission for this company,
right now it deals in UK, Canada, Brazil and Middle East (Greenergy international limited).
Vision: The ultimate goal of Greenergy international Ltd is to generate revenue, plus
globalising their market (Nishitani and et. al., 2012). Such companies expand and rather than just
earning revenue adding to that they believe in earning both intangible and tangible assets. It is
one of the biggest fuels producing company earning highest in their field.
Size: It can only include 50 members and no share selling for public.

Scope: It is massive structure of business organisation in its industry and still have
untapped areas to diversify or expand.
Stakeholders: It is private company it can only have minimum 50 shares holders which
are generally big industrialists.
Mission: Like every company Greenergy international limited wants to become globally
dominant in its field. It wanted to be leader in industry to set benchmarks (Andersson and et. al.,
2013).
Public: British broadcasting is huge group representing oldest firm in business of
broadcasting; it provides local service to all nations of giving paid signals and getting better
quality and performance in broadcasting field. Its major purpose is to provide services giving
good performance and better vision of quality to general public.
Vision: It wants to become global broadcaster provider which shows news related to
every country and field.
Size: Any company with over 500 shareholders and more than 10million € in assets can
be registered with US Securities and Exchange Commission (SEC).
Scope: It is massive organisation consist various other reforms and many developmental
scope of expanding globally. The only element stopping it to become globally dominant is its
governance of government.
Stakeholders: It is Main Stakeholders include Government, Customers, Investors,
Employees.
Mission: This corporation, is successful in nature but has faced plenty problems being
governed by government. Its mission is to implement proper market strategies, learning and
development and to understand consumer behaviour.
Voluntary: Wellcome trust is massive fund providing charity which supports and
incorporates different researches or inventions by scientists and researchers globally. It was
developed in year 1938, which supports biomedical science, health & safety, medical inventions,
social and human engagement and more areas like such for betterment of society.
Vision: Vision is to serve society get people aware of new harm full situations of future.
Its basic concept is for supporting bright ideas and minds which full fill in providing many
concepts of technologies and various developments in society. Such organisations base purpose

is to help society, no profit is gained by helping such society and they are very non-revenue
earning in nature.
Size: Different groups comes together to form this type of company so numbers of
members are not confined to limit but follow structure in operations.
Scope: This firm was created for benefits of society researchers and developers with
great ideas are supported and provided funds for their researchers (Boons and Lüdeke-Freund,
2013).
Stakeholders: It has more than 20 funders globally. All the research funded by Wellcome
trust is funded by these members
Mission: The ultimate vision of such organisations is to work for betterment of society
and gives support to research which could change the imbalances present in society and give
reason for development in nature.
TASK 2
P3. Explain relationship between different organisational functions and how they link to
organisational objectives and structure.
All function or roles played by organisation are made to achieve and match structure of
organisation including objectives of organisation. At Greenergy Pvt Ltd skilled team of human
resource management prepare such norms which will lead to successful path of company and
provide increment in revenues. Information provided below will study interrelated functions of
Greenergy’s different departments which will work together to achieve organisational objectives.
There is strong relationship of marketing functions with other department, for effectively
operating business activities in an organisation. Human resource is considered to be important
factor for growing any scale of business in competitive market in particular industry. If it is
talked about Greenergy Pvt Ltd management have strongly given emphasis on managing demand
and supply of HR in each department. Marketing department are directly connected with other
department for achieving desired objective of the company. These functional relationships are
mentioned under-beneath:
Human Resource and Marketing Department: HR department plays an essential role
in effectively communicating marketing manager for recruiting skilled applicant on designated
job profile within an organisation. In regards with Greenergy Pvt Ltd, marketing managers have

to estimate number of workforce required for fulfilling different vacant job in department. Also
the managers need to communicate with HR manager for hiring quality workforce in company.
Objective of Greenergy is to raise profit , this relationship helps in developing coordination
between department hence company becomes able to reach to wide rage of consumers and make
them positive which help in generating sales in company. Flat structure of the firm supports in
raising coordination and minimising communication issues so that activities can be done on time.
Finance and Marketing Department: Every firm requires funds for operating activities
for sustaining business in competitive market. When taking in consideration Greenergy Pvt Ltd,
marketing leader should estimate financial budget that are required for fulfilling the demand of
target consumer, also improve sales profit margin. Also marketing managers have to discuss
budget with financial manager, so that price of product could be planned. Flat structure help in
improving coordination by this way both functional units can interact with each other. Apart
from this, company wants to raise profit for that it is essential to have great coordination between
these units so that cash flow can be managed and expenses can be controlled.
Production and Sales Department: Sales department have direct connections with
production department as business operations are totally dependent on demand of goods or
service from target consumer in market. If it is talked about Greenergy Pvt Ltd, marketing
manager have to critically research on changing buying behaviour of consumer and accordingly
plan strategies with production department, for developing quality goods and attract target buyer
to their product. Flat structure aids in knowing the important information so that managers can
take right decision to meet the organisational goal, each department can coordinate with other in
smooth manner which improves operational efficiency. This interaction help business in
minimising confusion and raising profit of the firm to great extent.
TASK 3
P4. Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples
Greenergy international Ltd is huge group of producing fuel, established in 1992 it has
curved market with great grip and is one of highest revenue earning company. GREENERGY
corporation is a public corporation for benefit of public which is controlled by government.
Below its mentioned PESTEL analysis of British Broadcast Corporation for understanding its

functioning better: To understand its working better, PESTEL analysis is done below to
categories it’s all factors:
POLITICAL FACTOR: This factor really affects revenue returns and market reputation
of Greenergy international Ltd. Its basic purpose and field of business is to generate fuel and
provide it in good supply but its currents work with four countries which have different
government and political backgrounds which give them indehiscence in its working. Both
positive and negative aspects can be understood with an example of Brexit, where United
Kingdom got evicted from European Union, which affected companies like Greenergy
International Ltd.
Positive: When working in developed country like United Kingdom, it brings more
benefits and returns in monetary terms plus protects the business in country (Zeng, Li, and Duan,
2012). company can never run out of funding plus having government support is benefit. This
creates positive impact on productivity and profits.
Negative: This political change (Brexit), brought uncertainties among national markets of
both United Kingdom and of other European Countries as well, where Greenergy International
Ltd. was facing alterations among different range of laws and many other factors as well. Control
by government gives less access in decision making which reserves it from broadcasting many
contents. Bringing changes is difficult in such situations which effects profitability of company.
ECONOMIC FACTOR: Economic condition of United Kingdom is pretty much strong
and this has been found through looking at developing interest of many international business
organisation to perform in UK's open business market. If talked about Greenergy international
Ltd., organisation basically keep on modifying all its strategies and marketing schemes as well.
There are plenty number of Political reviews towards British Broadcasting Corporation, which
puts its public funding in suspicion. British public was aware of full interference of politicians in
the organisational structure due to which decrease in public funds were recorded on which the
company was fully dependent. After it became half public and half private, returns started to
increase again and it got its free will. GREENERGY set its levels and aim in context of quality
and giving functions in all products and service for people of the nation.
Positive: As United Kingdom's GDP rate is around $2.829 trillion (2019), which means
that if Greenergy international Ltd. Looks forward to expand its business among the areas of UK,
where they have not done the business yet, it is may be possible that company would gain high

competitive advantages in a short span. this provided independence of decision making in
GREENERGY and design process according to need of opportunities company want to exploit
and make profits.
Negative: Due to recession, United Kingdom's economic conditions reached to point
where, large organisations like Tesco, and more started facing decline within the business
environment. In the same way, quality got hinder as the Greenergy international Ltd required to
have fuel in order to decrease as in demand of the consumers is increasing and many competitors
in market as well. due to such factor major loss was also bared by GREENERGY which leads to
mismanagement in operations in changing process and losses in revenues.
SOCIAL FACTOR: This factor influences customer taste and preferences of UK
populations as it affects behaviour of consumer related to healthy lifestyle, buying habits,
educational level, income level, family structures, etc. These forces are present within society
and affects opinions, interests and attitudes. Thus, it impacts sales of products and profits which
effects organisational position. It is very much influential in nature and it provides social norms
in society, being a very popular website. Its nature is demanding for improvement in society and
provides services on pre-paid basis. The citizens were aware of the fact that GREENERGY is
honest and not corrupt in nature.
Positive: company makes changes in product according to customer’s needs by
conducting market research it can turn threats into opportunities and become leader in industry.
Loyalty of consumers towards GREENERGY will serves as base for continues profits and
goodwill for company.
Negative: changes in perception influence consumer’s mind. Changes in organisation will
depend upon public demand which keeps it on toe’s and sometimes causing loss in revenues for
company.
TECHNOLOGICAL FACTOR: Greenergy international Ltd keeps on using efficient
and updated technology to keep on providing better services and products. Business environment
is dynamic in nature and technological changes are most unpredicted, that makes present
technology outdated and changing is costly affair. This company have been always updated with
its technological products to be number one in their field market. It keeps the public attention
towards them and provides better quality to them. There are satellites present for broadcasting
news globally without any interruptions.

Positive: its makes process easy and hassle free to operate and efficient in productivity
which increases profits for company. Customers are very happy with the services and
GREENERGY generates a lot of revenue from it.
Negative: Due to technological enhancement current technology becomes outdated and
installing new one is expensive, full of uncertainties in process, effects cash flow in company.
New technology was not in budget of several customers which made them switch to
GREENERGY's low price competitors service
ENVIRONMENTAL FACTOR: The natural calamities and many other functions which
costs Greenergy international Ltd for example loss in delivery due to climate change or delay in
service due to natural calamities which affects the business. All changes above mentioned for
GREENERGY's development were followed by globalisation of industries. This provided
flexibility in digital products or services. Generally raising money because of environmental
influence was managed by programme funding. This provided more jobs in business and
increase rate of workings in UK. The environmental changes gave the idea to make new trading
areas for this industry.
Positive: Sometime due to such factors the company gets company benefits due to excess
demand of fuel in country. Low prices and better performance resulted in hike of revenues and
captured market share to become leader in industry.
Negative: It becomes a major loss if products are ruined because of environmental
factors. As company deals in perishable products, environmental factors have impacts on storage
which affects revenue. It was wastage of time and money for GREENERGY as this change will
not be profitable for company to invest in.
LEGAL FACTOR: It has to follow all the rules and regulation of all countries it works
with which sometimes become very difficult for the company to be very efficient in nature and
a lot of paper work which leads to wastage of time. GREENERGY is Self-sustained and free of
political or government influences organisation. Nonetheless, due to the influential environment
in the mid 80s, the GREENERGY needed to adjust its internal environment to meet market
demand. It’s very much legalised in nature and does not give much issue in its workings.
Positive: Legally being protected keeps company safe in situation of crises and helps
company to makes goodwill. Following all legal aspect of laws and regulations bring harmony

for company and any cases of unlawful activities are not registered. This improves goodwill for
company and thus increases revenues.
Negative: It is lot of paper work legally to be finished while working international which
costs the company and wastage of time as well. While operating in some countries and following
their respective laws brings company in situations where it cannot make its own decisions and
thus creates hurdle in productivity, revenues and operations globally.
TASK-4
P5. Conducting internal and external analysis of specific organisations in order to identify
strengths and weaknesses.
SWOT analysis is identifying strengths, weaknesses, opportunities and threats present in
internal and external environment of organisation to develop strategies. This section will study
SWOT analysis of British Broadcasting Corporation and Greenergy international Ltd analysing
both companies on the prominent factors is as follows:
SWOT analysis of Greenergy international Ltd
Greenergy international Ltd is globally dominant company which offers ozone-friendly fuel that
is a attractive factor for many customers and keeps it in demand.
Strengths: Greenergy international Ltd came in business in the year 1992 which makes it
is very popular and well known company in its areas of field. Due to good quality product, brand
reputation of company is high. This has serves as goodwill in market because audience have faith
on products of GREENERGY. Technological advancements, strong brand image, effective
marketing strategies have served as strengths for GREENERGY.
Weaknesses: Marketing strategy of company is weak due to which people around
international market are not familiar about services and products offered by company. One of
main weak point of GREENERGY is that it incurs high operating cost while other competitors
are conducting processes at lower cost. Biased news and raising controversies are issues in front
of them and they are unable to turn it into positive feedback through actions.
Opportunities: Greenergy international Ltd is currently working for only four countries
and it has so many more countries to explore and make relations to expand business. This helps
in generating revenues and expansion in new country adds to its development areas and decrease
its chances of failures (Cohen and Kietzmann 2014). Company can expand into Chania as

population is large hence it would help in generating more profit. As sign of growth they are
covering global events with packaging itself into completely new style of presenting. Biggest
opportunity is increasing revenue by using popular brand image of GREENERGY overseas.
Threat: In every organisation nowadays all business fields are full of many choices and
plenty competitors, while expanding business in new any country, main thereat for Greenergy
international Ltd are already working and well established rivalry companies, which decreases
the ratio of benefits for a country.
P6. Defining strengths and weaknesses interrelated with the external macro factors.
To understand macro factors of any business, PESTLE analysis helps in analysing
different aspects of organisation and evaluates it on different elements of a country. It helps
manager to understand external factor of organisation on country level. Factors which support
this method are political, economic, technological, environment, social and legal. This will
accumulate weather these factors are profitable to work in country or not. The following includes
PESTLE analysis of Greenergy international Ltd:
Greenergy international Ltd PESTLE analysis:
Political factor: These are connected to democratic effect on Greenergy workings, It’s
difficult to operate in zones where political background affects its revenues majorly. This factor
relates to government policies, tariffs rate, tax ratio, raw material availability and government
stability. This factor majorly affects firm like; government stability will affect operations and
workings of this organisation. An unstable government will make it difficult for firm to manage
all products and services to citizens.
 Positive impact: Operating in stable government will provide grate environment for
companies’ workings. Working in areas where government is stable provides easy
workings and proper management of firm, plus it will not be needed by the company to
change its policy and norms every time government changes.
 Negative impact: Tax policies keep changing which gives negative impacts on revenues
of Greenergy. Tax rates stipulates in United Kingdom which decreases profit ratio of
Greenergy.
Economic factor: This factor includes exchange & inflation rates of country which
decreases value of currency and purchasing power of people in country which majorly affects
revenues. This factor includes exchange rates in market, interest generation by working in

particular zone, United Kingdom has faced recession several times, which reduces the economic
growth of Greenergy in country.
 Positive impact: having disposable income of people in UK is beneficial for business of
Greenrgy, since purchasing power of company's consumer is increasing. Greenergy is
very much influenced in UK and people have high power of acquiring their service.
 negative impact: Currency rate fluctuations directly reduces profit ratio of company.
Increase and decrease in currency value, affects revenues of Greenergy.
Social factor: This factor includes social norms, cultures, rituals beliefs and mindset of
people of a particular zone. It’s important for Greenergy to follow and obey these norms. This
factor includes beliefs, opinion, value, daily lifestyle of citizens of a particular zone. Greenergy
should render products and services which does not affect against any such elements for its better
workings in country.
 Positive impact: Social factor does not affect greenergy's workings since its major
customers are big companies of crude oil.
 Negative impact: This factor affects business if company does not keep the believes and
tradition in mind while operating in the country. If people started making their preference
towards social culture and beliefs GREENERGY has to cut off many of its services and
products.
Technological factor: This factor includes development of company by using advanced
technology while operating to be a level above than competitors in market. This factor includes,
technological advancement and innovation under technology to get competitive advantage over
other similar
 Positive impact: This provides an upper hand in business workings and marketing
strategies as compared to competitors of Greenergy.
 Negative impact: Being not advanced in technology can sweep their customers away to
use other organisations products. Non-updated technology will give opportunity to
competitors gain customer base which will decrease revenues of GREENERGY.
Environmental factor: There are several norms and laws provided by government to protect
them from malpractices done by organisations. This factor includes protection of environment
from toxic business practices. Government has formed various laws and norms which protects
environment and GREENERGY has to follow all these laws.

 Positive impact: firm fulfil CSR activities that helps in increasing its good will.
 Negative impact: high wastage of natural resource create problem and increase cost of
firm.
Legal factor: For operating any business organisation it is very important to follow rules,
regulations and all acts in legislation of country. These laws protect all members of Greenergy. It
is very important for GREENERGY to follow all norms, laws and regulations provided by
government. These laws protect all members of organisations.
 Positive impact: Following all rules and norms will allow company to enter into new
markets and increase revenues generation for company. Following laws will benefit
GREENERGY customer reviews & positive response in achieving goals.
 Negative impact: Employment law sometimes affect retention of staff in the firm which
affect productivity of business.
CONCLUSION
From above report it has been concluded that business environment impacts functioning
of company and there is a need to analyse the internal and external factors through company for
enhance profitability of business. There are different kind of business organisations like private,
public and voluntary which have different scope, mission, objective and vision. It is essential for
different departments such as production, finance, HR etc. to work in an interrelated manner so
that organisational work can be performed in an efficient manner. With the help of PESTLE and
SWOT, various internal & external factors which can impact business environment can be
acknowledged. By interrelating external factors with strengths and weakness of internal factors,
appropriate scenario for business can be prepared which will help the organisation in taking right
decisions.

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Online
Greenergy international limited. 2019. [ONLINE]. Available through:
<http://www.hoovers.com/company-information/cs/company
profile.greenergy_international_limited.ac0239dc6d6bfae4.html?aka_re=1>.