Business and Business Environment: A Comprehensive Analysis of Public, Private, and Voluntary Sectors

BUSINESS AND BUISNESS ENVIRONEMENT
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Table of Contents
Introduction................................................................................................................. 3
LO1............................................................................................................................. 4
P1: Explain different types and purposes of organisations; public, private and
voluntary sectors and legal structures.........................................................................4
P2: Explain the size and scope of a range of different types of organisations............6
LO2............................................................................................................................. 8
P3: Explain the relationship between different organisational functions and how they
link to organisational objectives and structure.............................................................8
LO 3.......................................................................................................................... 11
P4: Identify the positive and negative impacts the macro environment has upon
business operations, supported by specific examples..............................................11
LO4........................................................................................................................... 14
P5: Conduct internal and external analysis of specific organisations in order to
identify strengths and weaknesses...........................................................................14
P6: Explain how strengths and weaknesses interrelate with external macro factors 16
Conclusion................................................................................................................ 17
Reference List...........................................................................................................18
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Introduction
Business environment is the sum total of all activities that affect this business. These
factors can be both micro and macro – internal and external and can have immense
impact on the success of the business. This study of the nature of business and
business environment is imperative understanding the viability of the business, its
performance and chances of surviving in the market.
The chosen companies for the three sectors are: Network Rail, UK (public sector),
Tesco, UK (private sector) and Cancer Research, UK (voluntary sector. This report
will shed light on scope, range, purpose and legal structures of three types of
business organisations – public, private and voluntary sectors. It will highlight the
organisational structure of a UK based organisation in the retail sector and focus on
the interconnectedness of its different departments. Size, scope, purpose and legal
structure of these will be assessed. Finally, a correlation of both these factors will be
drawn to arrive at the strength and weakness of the company.
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LO1
P1: Explain different types and purposes of organisations; public, private and
voluntary sectors and legal structures.
Business organisations are divided under several broad heads depending on the
nature, purpose, size and scope of the business.
Broadly, organisations can be divided into three sectors – public, private and
voluntary. Based on the purpose and services that these companies offer they can
be categorised as profit and non profit making organisations. The legal structure
depends on the size and nature of a company.
3 Types of Business Organisations:
Public Sector companies are those that are owned, managed and operated by the
government of a country, with a purpose to offer basic goods or services, primarily
in the defence, transport, health and education and social welfare sectors.
(Bouckaert et al.,2016).
Network Rail, UK is one such public sector company, which owns and operates
British railways and develops the national time-table.
Purpose: The Company maintains and develops 20,000 track-miles, 30,000 bridges,
tunnels and viaducts. Its operates in collaboration with Britain’s private train
operating companies (Network Rail, 2018)
Legal structure – The Company is classified as “public sector body” and is an “arms
length public body” of the Depart of Transport, UK. It has no shareholders and the
revenue is reinvested in railways. (Network Rail, 2018).
Private Sector companies are non-governmental ventures and are operated by
individuals or companies. These organisations enter the business ecosystem to
make a profit and its contribution in a country’s economy is almost always the
largest. Such companies are not controlled by the government Purpose – Most
business organisations belong in this sector and these companies provide a wide
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