Business and Business Environment: A Comprehensive Analysis

Business and Business Environment

Table of contents
Introduction...................................................................................................................... 4
LO1: Explain the different types of organizations, including their size and scope............5
P1. Explain different types and purposes of organizations; public, private and voluntary
sectors and legal structures.............................................................................................5
P2. Explain the size and scope of a range of different types of organizations.................6
M1. Analyze how the structure, size and scope of different organizations link to the
business objectives and product and services offered by the organization......................8
LO2: Demonstrate the interrelationship of the various functions within an organization
and how they link to organizational structure.................................................................10
Explain the relationship between different organizational functions and how they link to
organizational objectives and structure [P3]...................................................................10
To achieve M2, you should analyze the advantages and disadvantages of the
interrelationships between organizational functions and the impact that they can have
upon organizational structure.........................................................................................12
LO3: Use contemporary examples to demonstrate both the positive and negative
influence/impact the macro environment has on business operations...........................13
Using PESTLE identify the positive and negative impact the macro environment has
upon the business operations of your chosen organization. You should support your
answer by specific examples from your chosen organization [P4].................................13
Using SWOT or TOWS conduct an internal and external analysis of your chosen
organization in order to identify its strengths and weaknesses and explain how strengths
and weaknesses interrelate with external macro factors [P5, P6]..................................16
To achieve M4, you should apply appropriately SWOT/TOWS analysis and justify how
they influence decision-making by your chosen organization........................................18
Conclusion..................................................................................................................... 19
Reference list................................................................................................................. 20

Introduction
Business can be understood as organized efforts of various teams and employees to
supply consumers with products and services for a profit. Business can vary in their
size, depending on number of employees or revenue generated in every quarter.
Businesses can be public, private and voluntary. Primarily, the purpose of businesses is
to build profits and growth. The term ‘Business Environment’ refers to forces, factors
and institutions, that are beyond the control of business and they affect the functioning
of the business enterprise. These factors may include suppliers, competitors,
government policies, technological factors, customers etc. These factors are
uncontrollable in nature and can directly or indirectly affect the business, its location, the
distribution system, personnel policies. Understanding the various components of
business environment like political aspects, socio-cultural aspects, the political
framework is important for running the business smoothly. In this study, concept of
different types of business and various components of the environment that affect the
business are discussed.

LO1: Explain the different types of organizations, including their size and scope
P1. Explain different types and purposes of organizations; public, private and
voluntary sectors and legal structures.
In the market of UK there are mainly three types of organizational structure prevailing they are
public, private and voluntary.
Public organizations
These organizations are also known as the State sector. The public organizations
consist of both the public services and public enterprises. This sector of the economy
consist of the organizations providing service to the public which can include military,
police, public education, infrastructural organizations building bridges, roads, water
supply to the public and this organization also provide health care to the public residing
within their society. The main motive or purpose of their organization is to provide
service to the public and not profit making and even if they generate profit it is their
responsibility to implement that profit for the welfare of the society (Brewster and
Hegewisch, 2017). Here, considering Network Rail as the public organization, providing
the transport facility and the scope for job to the public of UK. The legal structures that
the Network Railway consists are mainly the boards of directors who are accountable
for the management of the organization. There are mainly two types of members
present in the board of directors they are the organizations who are holding the licenses
to operate the business and the other members of the organization are elected by the
independent panel of the government and they serve the company for a term of three
years.
Private Organizations
Private organization are the organization which are owned or governed by public of an
economy structure and the main motive of the private organizations are to make profit
out of the economy and to grow their business market. Another objective of the private