Business and Business Environment

This assignment explores the different types and purposes of organizations, their size and scope, and the relation between different organizational functions. It also analyzes the positive and negative impacts of the macro environment on businesses. The selected organizations include Aston Martin from the private sector, NHS from the public sector, and Save the Children from the voluntary sector.

Business and business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
LO 1.................................................................................................................................................1
P1) Different type and purpose of organisations ...................................................................1
P2) Size and scope of range of different organisations .........................................................3
LO 2.................................................................................................................................................4
P3) Relation between different organisational functional......................................................4
PART 2............................................................................................................................................6
LO 3.................................................................................................................................................6
P4) Positive and negative impacts of macro environment ....................................................6
LO 4.................................................................................................................................................8
P5) Analysis of internal and external strengths and weakness ..............................................8
P6) Interrelation of strengths and weaknesses with external macro factors .......................10
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Business environment represent the sum total of the internal and external factors that
have effect on functioning and working of an organisation. It include employees and workforce,
customers needs and demands, management of the organisation, supply and demand chain,
business suppliers, owners and partners of company, activities and policies of government, social
and market trends, economic and political change and many more elements which directly or
indirectly effects the productivity and profitability of a firm (Ali, Islam and Rahman, 2019). This
assignment is business and business environment for which three organisations are selected from
different business sector of UK. Aston martin is taken as Private sector organisation, NHS
(National Health Service) is chosen form Public sector and Save the children is selected as
Voluntary sector. This report is based on various types of organisations and also include a
description about their size and legal structure. Beside this connection among different
organisational function and structure is also there. A last, use of PESTEL and SWOT analysis is
also included to identify impact of environment on business.
PART 1
LO 1
P1) Different type and purpose of organisations
An organisations is basically represent a group a people and other assets which are
working together for accomplishment of any specified task. In business environment a wide
range and types of organisations are found having different purpose and legal structure which are
explained below:
Private sector- The organisations or firms belong to this category are managed and run
by private individual or group of individuals and there main purpose is maximization of profit
and expansion of business operation (Ayios, 2018)
Legal structure
On the basis of their legal structure and composition private sector is classified into
following three types:
Sole proprietorship- In this type of private sector organisation all the activities and
functions of an organisations is controlled and managed by single individuals who is solely and
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fully responsible for all risks and profits. Many provisions related with their registration and tax
return are made in UK which separates it from other private sector organisation.
Partnership- It is basically an association or group of two or more individuals who
combinedly operates and mange a business and members of partnership form can vary from 2 to
20 (Beatty, Samuelson and Abril, 2018). all the rules and regulation regarding sharing of profit
and liability of a partner are mentioned in partnership deed and in UK provision of partnership
act, 1890 are also applicable on partnership firms.
Private limited companies- These are the organisations where large number of
shareholders are owners of organisations jointly and having a limited liability up to the value of
shares hold by them. These private organisations are bounded by its MOA and AOA which are
two important written documents containing all the relevant information about a company. Apart
fro this Companies act, 2006 is also applicable on private companies in UK.
Public sector- Organisation of this sector are fully or partially controlled with
government and related legal authority of a country with the main purpose of serving the society
of nation through providing public facility like health and education, easy transportation, roads,
police, army, etc.
Legal structure
On the basis of their control, accountability and legal structure, public sector is divided
into three types.
Central government- These organisations are under the direct control of central authority
and government of a nation thus, all the legal laws and policies formulated by central controlling
body are applicable on them (Boone and et.al., 2019).
State government- The firms and organisation belongs to this category are managed by
government of a particular state in which the main operations of company are conducted. Thus, it
legal structure and regulations are governed by government of that specific state.
Local government- These organisations are managed and control by local body or
authority and their legal laws and policies are formed by local government and properly
managed by municipal corporation.
Voluntary sector- In this sector mainly NGO and other charitable trust and social
organisations are included which are having main purpose of serving society through creating
value for deprived and vulnerable group.
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Legal structure
Following types of charitable organisations are included in this sector on the basis of their
legal structure:
Trusts – It is a group of people who works together for welfare of society and through
making and collecting charity and donation for achievement of that purpose. Members of a trust
are mainly governed by rules and provisions of trust deed (Hamilton and Webster, 2018)
(Kasemsap, 2018).
Company limited by guarantee- It is regarded as one of the most common type of
organisation in voluntary sector and its members are controlled by provisions of its AOA and
MOA.
With passage of time role and importance of these various types or organisation are
increasing and playing a important role in growth of economy through creating better job
opportunity and increasing standard of living. Apart fro this better international relations are also
established by these organisations through incensing integration and trade at international level.
P2) Size and scope of range of different organisations
The organisation which belongs to different sector are having mainly having a diversified
size and scope on the basis of their mission, vision, business objective and legal structure
(Khatun and Miah, 2019). An overview of all the three selected organisations with information
about their size and scope, mission, vision, etc. is provided below:
Aston martin
This organisations belongs to private sector and on the basis of its legal structure it is a
private limited company(plc). Aston martin is a British manufacture of luxury sports cars was
founded in 1913 by Robert Bamford and Lionel Martin (Aston Martin, 2019). The headquarter of
this organisation is in Warwickshire, England, United Kingdom. Being a private sector
organisation its mission is to maximize its profit and vision is to make efforts for future
expansion at international level in the areas where its operations are still not exits. Thus, the main
aim and objectives of Aston martin is to target a large share of market for attracting more
customers. In the stakeholders of Aston martin all its employees, partners, customers, directors,
shareholders, etc. are included. Aston martin is a large sized organisation operating in more than
53 countries of world which includes US, Canada, UK and many parts of Asia.
National health service
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NHS is a public sector organisation which is operated and control by government of UK
and its operations are managed by Department of health and social (NHS, 2019). National health
service is system of pubic heath care providers in United kingdom. The NHS is having a mission
of providing comprehensive, universal and free heath services for the well fare of society which
also include providing free dental treatment and optical care. The vision of NHS is to provide
best health service system to ordinarily resident of UK without much charges or at free of cost. It
objective include creation of a atmosphere of equality in providing health and social services so
that every individual whether rich or poor can have best medical treatment. It is a large sized
public sector organisation with more than 1700000 employees and operating in various location
of UK which includes England, Scotland, Wales, etc.
Save the children
It is a Voluntary sector organisation and on the basis of its legal structure it is a registered
company limited by guarantee (Save the children, 2019). It is having a vision of providing safe
environment for children through creating opportunity for their development and education thus
creating a better world for them. The mission of save the children organisations is to create
changes in world for providing survival and other basis rights to children. The main objective of
Save the children organisation bis to reduce the number of deaths of children through rescuing
them from war areas. The operations and functions of this voluntary organisation is meet through
amount of donation and charity made by its stakeholders. Save the children is a vast international
organisation operating in around 120 nations.
LO 2
P3) Relation between different organisational functional
Aston martin is a famous manufacturer of luxury sports cars operating in around 53
countries of thus, having a vast level of operations. To bring clarity and proper coordination in
its work and function use of functional organisational structure is used by Aston martin. The
organisational structure of Aston martin is provided below:
Function based organisational structure of Aston martin
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(Source: Function based organisational structure of Aston martin, 2019)
The various functions of Aston martin are described below:
Marketing function- This function of Aston martin helps it to identify and source
potentially successful products in its marketplace and then effectively promote its cars which
differentiating it from other similar products, thus attract more customers (Kopnina and Blewitt,
2018)(Nikitina and Lapiņa, 2019).
Production- This function or department of Aston martin is responsible for
manufacturing of luxury cars for its customers and maintain a coordination between demand and
supply thus, ensure timely delivery of products to customers.
R&D – This department or function of Aston martin is concerned with developing and
designing new models of cars with new innovative and creative features thus, makes its product
more valuable than that of competitors.
Finance- This department is related with proper and timely maintenance of reports and
budget through recording day to day financial transaction of Aston martin. Thus, control on
expenses and other wasteful activities is the main purpose of this function of Aston martin so that
cost efficiency and proper estimation of profit can be made.
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Illustration 1: Function based organisational structure of Aston martin, 2019

Interrelation of functions in Aston martin
To ensure the coordination in efforts and to maintain the proper flow information and
data for effective decision making and strategy formulation, interrelation and collaboration of
function is necessary. This interrelation of function in context of Aston martin are explained
below:
Finance and marketing- A collaboration between finance and marketing function
provide more effectiveness in marketing tolls through allocating sufficient amount of money for
advertising and other marketing strategy (Shu, Jain and Liang, 2019). This interrelation helps in
creating better awareness of about features of cars of Aston martin thus, attract more customers
and yield better revenue.
Production and R&D- A correlation of production and R&D functions ensure
availability for product with most innovative and latest features as the new feature developed and
designed by R&D department are finally implemented and executed by production department
thus, this interrelation ensure availability of best product for customers of Aston martin.
From the above discussion it can be said that interrelation between functional unit is
beneficial for Aston martin as provide better control on cost and expenditure of marketing and
also ensure effectiveness in marketing so that more customers can be attracted for better revenue.
Collaboration of R&D and production Aston Martin. 2019is also useful in manufacturing more
creative and advance cars to target more customers (Singh, 2019). But , this interrelation can
also create chaos and complicity in Aston martin if proper flow of communication and
information does not take place. Thus, theses functions are properly coordinated with adopting a
suitable organisational structure I.e. Functional organisational structure so that effective flow of
information and better communication can be establish in Aston martin which also lead to
effective decision making.
PART 2
LO 3
P4) Positive and negative impacts of macro environment
For analysis and evaluation of positive and negative influence of macro or external
environment use of PESTEL analysis is made by Aston martin which is described below:
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Political- The political conditions of UK mainly remain stable thus creates positive
impact on function of Aston martin but the recent issue of Brexit has lead to reduction in amount
of investment and also badly impact the trade relation with Europe. Thus, creating negative
impact on sales and profitability of Aston martin.
Economical- The average growth rate of UK is 2.45 % with maximum all time high in
first quarter of 2019 I.e.9.80% in first quarter which is showing better opportunity for Aston
martin through increasing demand and disposable income of customers so that they can afford
luxury cars (Sousa and Rocha, 2019). The current employment rate is 3.9% which has enhanced
the price of labour thus increasing cot of production for Aston martin.
Society- The society of UK mainly includes rich Christians who are well educated and
fond of luxury items thus, social environment of UK creates opportunity for Aston martin to
invest more on its cars to make them more dynamic and unique to attract large number of
customers. But this has also created a pressure on Aston martin as if more advance and better
featured car is launched by any competitor than its customer can make a shift towards its
competitors.
Technological- The technology in UK is growing and getting better with a fast speed
thus, Aston martin is having a opportunity to make an effective balance with this fast growing
technology. It is helpful in creating more innovative and better featured car for customers. But
making continuous changes in technology is not easy and quite complex for Aston martin thus,
sometime also lead to negative impact through increasing complexity in operation.
Environmental- Many norms and acts are made by government of UK for protection of
environment and society of UK is also becoming more conservative and aware towards
environment (Tura, Keränen and Patala, 2019). Thus, this has created an opportunity for Aston
martin to come up with electric cars and other renewable energy based products. Many rebates
and discounts are also provided to Aston martin for its R&D to develop better technology which
will reduce carbon emission in environment.
Legal- In this macro element all the legal acts and regulation formed by the government
for safety and welfare of employees and customers are included (Yamamoto and Zhi, 2019). This
factor of business environment is quite threatening for Aston martin as it has increased the
possibility of legal claims and other consequences for Aston martin as labour and customer
safety acts of UK are very strict and in favour of individuals.
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From above PESTEL analysis of Aston martin it can be said that various positive factors
and opportunity are there for Aston martin in its macro environment as opportunity for
technological advancement and fulfilment of environmental needs are there. But at the same time
recession created through Brexit issues and legal threat are also exists in business environment of
Aston martin.
LO 4
P5) Analysis of internal and external strengths and weakness
For analysis of internal and external strengths and weakness of NHS and Aston martin
use of SWOT analysis is made which are provided below:
SWOT analysis of NHS (National Health Service):
Strengths Weaknesses
 One of the largest charity health service
providers in UK, which makes the
organisation more stronger. It has huge
goodwill which help NHS in raising
more funds through donations and from
government.
 NHS offers various unique clinical
services to public and to its clients. Has
specialised doctors and other staff.
 Face some problems in funding as it is
funded from taxations and insurances
but due to BREXIT funds are becoming
problem for NHS.
 After BREXIT compromises has to be
made as it will affect the staff, many
physicians and surgeons will leave the
organisation (Zwikael and Smyrk,
2019)..
Opportunities Threats
 Geographical expansion is possibility
NHS can explore for providing its
services in wider locations and reaching
to more and more people.
 Be open for appointing new talents and
expertise in organisations. New
functioning ideas and opinions should
be taken from staff for better
 Customer loyalty is not there, patients
come, take all the medications and shift
to other health provider. Its a threat and
if ignored then it can get worst
outcomes. It harms the reputation of
company and affects it in many
negative manner.
 Another threat is increasing
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implementation and execution of work
(Ali, Islam and Rahman, 2019).
competition, most clients are shifting to
private hospitals and their preferences
are changing and diverting their
attention to other specialised health
care centres.
SWOT analysis of Aston Martin:
Strengths Weaknesses
 Customer base of Aston Martin is huge
and really strong. Aston Martin is
making luxury cars since 1913, holds
great reputation in marketplace. Their
customers are loyal towards the brand
and do not shift.
 Aston Martin is operating in various
countries, they are spreading their
business functions and also
diversifying. Company is entering into
other automobiles market like
speedboats and submarines. This wide
spread business helps them in being
approachable by vast population in
different areas and regions.
 The company has very small range of
models which restricts the choice of
buyers. They provide quality products
but low selection range which works as
their weakness.
 Aston Martin is dealing in luxury cars
and manufacturing good quality
products for their loyal customers. But
due to this they have very less market,
only on market segment is targeted by
them that is higher class which is why
their market size is small (Ayios, 2018).
Opportunities Threats
 Aston Martin can expand its product
lines into making daily use
automobiles. This will enhance their
market size and add more customers.
 Aston Martin is available in more then
50 countries still they are hard to find.
 Day by day competition is increasing
for Aston Martin. Many new and
existing organisations are entering the
business of producing luxury cars.
 Price fluctuations of fuel around the
globe is also a threat because of
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Company has this opportunity to
expand its availability and penetrate
themselves.
increase in costs of petroleum.
P6) Interrelation of strengths and weaknesses with external macro factors
A collaboration between internal strengths and external opportunity yield better result
through making use of effective resources for taking advantage of opportunity. This interrelation
between internal factors and macro environment also makes an organisation able to counter or
handle the possible threat through formulation of effective strategies and at the same time also
helps in overcoming weakness (Beatty, Samuelson and Abril, 2018). On the basis of PESTEL
analysis and SWOT model of Aston martin it can be said they are having an opportunity in its
business environment for making better electric cars and at the same time its strength of creating
innovation and creativity through effective R&D department is facilitating a brighter future and
growth opportunity for it.
The weakness of Aston martin includes high prices of its luxury cars which has reduced
its target market and at the same time its economical conditions is also facing a little recession
because of Brexit issue thus, it is the right time for Aston martin to come with some affordable
cars so that threats of both slow economy and weakness of high prices can be easily overcome
(Boone and et.al., 2019). Thus, it can be said that interrelation of strengths and weakness are
helpful and lead to better decision making which are necessary and most suitable for handling an
adverse situation and for grabbing a better opportunity.
CONCLUSION
On the basis of above assignment it can be summarised that there are various types of
organisations in a business or corporate environment like private, public and voluntary sector
which are further classified into various type on the basis of there legal structure. Each type of
organisation is having a different vision, mission and objective like main motto of private
organisation is maximisation of profit. Marketing, production, etc. are some main functions of an
organisation. At last it can be concluded that use of SWOT and PESTEL analysis is made for
evaluation of different internal and external factors of an organisation.
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REFERENCES
Books and journal
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Beatty, J. F., Samuelson, S. S. and Abril, P. S., 2018. Business law and the legal environment.
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Boone, L. E.and et.al., 2019. Contemporary business. John Wiley & Sons.
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Kasemsap, K., 2018. Mastering business process management and business intelligence in global
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Online:
Aston Martin. 2019. [Online] Available Through:<https://www.astonmartin.com/en-us/ >.
NHS. 2019. [Online] Available Through:<https://www.nhs.uk/>.
Save the children. 2019. [Online] Available
Through:<https://support.savethechildren.in/savethechildren-india/?
utm_source=google-brand&utm_medium=paid-text&utm_campaign=wc-brand-
bmm&utm_term=save-the-children&utm_content=brand-
core&gclid=EAIaIQobChMI68j04p-
K5gIVyY2PCh3B5AToEAAYASAAEgJZTPD_BwE >.
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