Business and the Business Environment

BUSINESS AND THE
BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
SECTION 1.....................................................................................................................................3
Overview of different types and purposes of organizations........................................................3
Analysis of each of the chosen organizations..............................................................................4
Legal structure for types of organizations...................................................................................4
Complexities analyses of one organization with other types of businesses, functions
interrelatedness using organizational chat and how they relate to structure................................5
SECTION 2.....................................................................................................................................7
Macro environmental factors influence on organisation.............................................................7
SWOT Analysis.........................................................................................................................10
Weaknesses and strengths interrelate with factors of macro environment................................11
Key findings of internal and external analysis..........................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment refers to a collection of people, organization and other forces
which may or may not be under the control of the organization. It is the aggregate of all the
internal as well as external factors that affect the functioning of the company. Organization has a
structure and its graphical representation is called organizational chart which conveys the details
of roles, responsibilities and relationship between individuals within the organization (Ji-fan Ren
and et.al., 2017). Iceland's foods Ltd is a British Supermarket chain and has its headquarters in
Deeside, Wales, United Kingdom. They mainly deal in frozen food groceries including meals
and vegetables and other grocery items. In the further report the following points will be
discussed: different types, sizes and scope of organization. Interrelationship between various
functions within the organization and their link to organizational structure. Positive and negative
impact of macro environment on business operations. Light will be put on internal strength and
weakness of specific businesses and their interrelationship with external macro factors.
SECTION 1
Overview of different types and purposes of organizations
There are different types of businesses in the market which are public, private and
voluntary. They have different purpose in the market which is very clear, and they must focus
upon them so that they will be able to achieve the objectives and goals. Public organizations for
example, Sainsbury’s belong to this type, and they have large market share, and they require a lot
of resources to be able to operate in the market easily. The purpose is to provide the best of
services to the customers and services as well so that the satisfaction level increases and resulting
in higher market share. Private organizations such as Iceland Food Ltd. which use hi-fi
technology in their daily businesses operations so that there is going to be better functioning and
the business will be able to gain high profit margins which is going to be very good for the
organization. The shares of this type of organization have limited shareholders who gain from
these businesses which is a very good factor. Voluntary organizations such as British heart
foundation works for the benefit of the society and not for profits. The aim of the organization is
to get in charity and donations from people and use it for the welfare purpose solely.

Analysis of each of the chosen organizations
Iceland Food Ltd. is belongs from the retailing industry which is having limited
stakeholders but not more than 250 stakeholders can be there in a private organization. In a
public organization there can be more than 250 stakeholders which means the profit is going to
be distributed amongst all the stakeholders equally or according to the percentage of stake they
are holding in the organization. Sainsbury’s has a lot of stakeholders which is why the company
does not have enough investment for the expansion since the profits are being distributed and for
global recognition there have to be investment which have to be made.
Legal structure for types of organizations
It is the upper management which is responsible for all the legal and ethical factors of the
working environment. The contract law is in the hands of the upper management, and they can
mould it according to the management as to however they wish it to be (Fleming, Lynch and
Kelliher, 2016). Be it private, public or voluntary this contract is going to reduce the conflicts in
the organization and retention of the employees is going to be present. Well on the other hand,
Employment laws are got the organization to have a good environment to work within and the
productivity of the company is also going to improve. There have to be equality acts, partnership
acts, etc which have to be worked upon and followed by the organization and daily operations
are planned around them so that there is going to be better performance of these businesses in the
market. Employment law
This is a daily operating act which is for all sectors (private, public or voluntary) which
companies must follow. This is a law which is passed by the government of UK so that all the
organizations follow them and there is going to be panellizing by the local government if not
followed.
 Partnership act 1890
When there are two or more people wanting to start a venture they have to legally register
themselves in UK. There are a lot of conflicts and further separations are going to be easier and
not a lot of legalizations which have to be done.
Size and Scope
 Micro