Business and Business Environment: A Comprehensive Analysis

Business and Business Environment
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Contents
Introduction.................................................................................................................................................3
Lo1:.............................................................................................................................................................4
P1: Different types of organisations........................................................................................................4
P2: Size and scope of the organisations...................................................................................................5
M1: Analyze how the structure, size, and scope of different organisations link to the business
objectives and product and services offered by the organisation.............................................................6
Lo2:.............................................................................................................................................................7
P3: Organisation structures and functions (P3)........................................................................................7
M2: Analyze the advantages and disadvantages of interrelationships between organisational functions
and the impact that can have on organisational structure.........................................................................9
D1: Provide a critical analysis of the complexities of different types of business structures and the
interrelationships of the different organisational functions....................................................................10
Lo3:...........................................................................................................................................................11
P4: Using PESTEL model, identify the positive and negative impacts the macro environment has on
the UK retail sector................................................................................................................................11
M3: Apply appropriately the PESTLE model to support a detailed analysis of the macro environment
within an organisation...........................................................................................................................13
Lo4............................................................................................................................................................14
P5: Conduct internal (SWOT/TOWS analysis) and external (Five forces model) analysis of a UK
Supermarket to identify its strengths and weaknesses...........................................................................14
P6: Explain how strengths and weaknesses interrelate with external macro factors..............................16
M4: Apply appropriately SWOT/TOWS and Five forces analysis in justifying how they influence
decision-making....................................................................................................................................17
D2 Critically evaluate the impacts that both macro and micro factors have upon business objectives and
decision-making....................................................................................................................................18
Conclusion.................................................................................................................................................19
References.................................................................................................................................................20
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Introduction
This unit is about the business environment which includes the different types of organisation
such as profit, nonprofit. Thomas Armstrong Group is the construction organisation which was
established in 1830, this organisation is expert in the services of the construction and
manufactures the building and the product with the quality. The supply of the goods and the
purpose of the business are given. Organisations are differentiating according to their size, scope
which is micro, small business, medium and large business. The advantages and disadvantages of
the interrelation between the functions of the organisation and the impact of the organisational
structure are discussed. The PESTEL and SWOT analysis are discussed; the positive and the
negative impact of the macro business on the retail sector of UK are discussed. The strength and
weakness interrelated with the external macro factors are discussed.
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Lo1:
P1: Different types of organisations.
There are different organisations in the country; one is profit, nonprofit and NGOs. The profit
organisation in the UK is Thomas Armstrong Group which was established in 1830. The profit
organisations are the business that generates more money than their expenditure. The primary
aim of these organisations is to gain more and more market share and revenue. This business
uses different styles of leadership and management to increase the motivation of the employees
and the satisfaction, which helps in increasing the productivity of the organisation. The main
motive of this business is to generate more and more profit. The next focus of this organisation
is to satisfy the needs of their customers. The product and the services of these organisations are
according to the need of the customers.
Nonprofit organisations are charitable and tax-exempt which means they do not pay the income
tax for the money which they receive for their organisation. The main purpose of these
organisations is to benefit the society. The main aspects of these organisations are honesty,
trustworthiness, accountability, and openness to that entire person who has invested their time,
faith and money in the organisation. The message trust is the charitable trust in the UK which
improves the life of the young and teenagers. The common goal of this organisation is to join
more and more people with it and the common goal is to improve the life of the people
(Nakamura, and Abe, 2014).
The non-government organisation is independent of the government and the international
government organisation. These organisations are active in the healthcare, educational, human
rights, social welfare to make changes in the areas according to their objectives. The NGO of UK
4 The Children (4TC) is for the welfare of the children. This organisation provides the education
for the children. These types of organisations are funded by the donations given by the people.
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P2: Size and scope of the organisations.
The microenterprise is the small business; these organisations have less number of employees, 10
or less. These organisations are specialized in providing the goods and services to the local
people. The common works in this business are carpenters, street vendors, peasant farmers, and
seamstresses. Most of the micro business is the family business which is established by the one
or two family member and run by them to earn their livelihood. They grow their business only
when they need some changes in their life and want to generate more income (Min, 2015).
Small enterprises are privately owned by the corporations, sole proprietorship or partnerships.
These businesses have the small number of workers and don't have the high volume of the sale.
These businesses include bakeries, restaurants, small grocery shop, photographers. These
businesses help the local economy by providing the job to the local people. These businesses are
known as the small business in the terms of ability to apply the support of the government and
are qualified for the preferential tax policy depends upon the industry and country.
Medium enterprises are the businesses grow slowly from the small business. These businesses
maintain the assets, number of employees in the certain threshold. When these companies earn
revenue they start creating their assets such as building, more employees, equipment. These
businesses had the employees fewer than 250 employees (Sualang, et. al., 2017).
Large enterprises are the business which has the minimum number of employees is 5000. This
business has the annual turnover is greater than the 1.5 billion euros. The balance sheet of this
business is more than of 2 billion euros. The activities of these businesses run from “huge
transactions” to more general “doing big things”. These business influences over the
governments in the trade policy, tax policy, environmental policies, labor policy. These
businesses are experts in marketing and manufacturing.
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M1: Analyze how the structure, size, and scope of different organisations link to the
business objectives and product and services offered by the organisation
There are many organisations and all work according to their size, structure, and scope. Every
business has different products and services, the different way of presenting the product and
services. The first business which comes is the micro business which has less number of
employees; this business is the family business, these businesses provide their service in the local
area. The next business which comes is the small business; it is the business with less number of
people and doesn’t have high sale revenue. These businesses help the local people by providing
them the job.
The next business is the medium business which is grown from the small business. These
businesses grow their assets when they increase their revenue, to create the new building,
equipment, and the employees. The large corporates are the business which has the power over
the market and on the other small business. The main object of this business is the development
of the society and environment. This business focus on creating more revenue and market share.
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