Business and Business Environment Analysis

Business and Business Environment
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Table of Contents
Introduction......................................................................................................................................4
Section 1..........................................................................................................................................5
LO1..................................................................................................................................................5
P1 Explain the different types and purposes of organisations; private, public and voluntary
sector and legal structures............................................................................................................5
P2 Explain the size and scope of a range of different types of organisations.............................7
M1 Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation................................................8
LO2..................................................................................................................................................9
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure........................................................................................9
M2 Analyse the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have upon the organisational structure................................11
D1 Provide a critical analysis of the complexities of different types of business structure and
the interrelationships of the different organisational functions.................................................12
Section 2........................................................................................................................................13
LO 3...............................................................................................................................................13
P4 Identify the positive and negative impacts the macro environment has on business
operations, supported by examples............................................................................................13
M3 Apply appropriate the PESTLE model support detailed analysis of the macro environment
within an organisation................................................................................................................15
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LO 4...............................................................................................................................................17
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses..........................................................................................................17
P6 Explain how strengths and weaknesses interrelate with external macro factors..................19
M4 Apply appropriately SWOT/TOWS analysis and justify how they influence decision
making.......................................................................................................................................21
D2 Critically analyse the impacts that both macro and micro factors have upon business
objectives and decision making.................................................................................................22
Conclusion.....................................................................................................................................23
References......................................................................................................................................24
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Introduction
The business environment consists of two factors which are internal and external which
influence the organisation, its employees, management system, customers, demand, supply,
business rules and regulations. For existing in a competitive market, it is mandatory for
companies to identify all environmental factors and then set business policies and strategies
according to them. This assignment is based on the study of different types of organisation, their
size and scope. Marks and Spencer have chosen for this report because it is highly influenced by
business environment. In this report, the different function of M&S and their interrelationship
has been evaluated. Also, it is determined that how business functions links with organisational
structure. Apart from this, the positive and negative influence of external factors on Marks and
Spencer has been analysed. This assignment includes the strengths and weaknesses of Marks and
Spencer and also highlights their interrelationship with external elements of the business
environment.
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Section 1
LO1
P1 Explain the different types and purposes of organisations; private, public and voluntary
sector and legal structures.
An organisation is that social unit which is managed and controlled to accomplish some desired
goals and objectives of the business. There can be three types of enterprise which are public,
private and voluntary. Different kind of organisation operates their business activities in some
different manner and to achieve some different goals. The business industry of United Kingdom
is divided into three types of organisations which are followed as under:
Private sector: It is that business industry which is mainly controlled and managed by
entrepreneurs who do not take permission from legal authorities while taking any important
decisions regarding their business. Marks and Spencer is one of the most popular private
organisations which is basically a retailer company and operates its business activities across the
world. This type of enterprises makes various efforts to increase their profitability as well as
productivity (Padmanand, et. al., 2016). Customer satisfaction, employees’ gratification and
quality control are some major activities which are performed by the privately held company to
maximise their sales revenue. The legal structure of private sector is categorised into different
parts which are following as under:
 Sole proprietorship: This is considered as the least regulated type of organisation because in
this all business activities and practices are managed by single owner. This type of organisation
mainly satisfies the needs and wants of local people. Kurt Geiger is the great example of UK
based single proprietor firm.
 Partnership: This type of organisation can be formed easily also, it provides additional
managerial as well as financial resources. All partners of an organisation are known as the agent
who plays the crucial role in decision-making process. In partnership firms, all partners are liable
for taxes and debts. Also, they share organisational profit equally. McDonald's is the great
example of partnership firm (Shehu and Mahmood, 2014).
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 Public limited company: It is that private company which offer its share to the general public.
Marks and Spencer is the biggest example of the public limited company.
Public sector: This business industry is totally different from the private sector because it is fully
controlled as well as managed by legal authorities. In the United Kingdom, many public
companies are working for enhancing social welfare. The main services which are provided by
public companies are transportation, police, bridges, railway etc. NHS is one of the most popular
public organizations in UK. The most important goal of the public sector is to improve the living
standard of people. Public companies use their generated profit in social activities
(Vandekerckhove and Ramioul, 2015). The legal structure of public sector is divided into two
parts which are discussed below:
 The central government: This is considered as the main body of country or face of a nation
which makes the main rules, regulations and policies for the entire country. Mainly it deals with
national security, diplomacy decisions and international affairs of United Kingdom.
 The state government: This is known as the lowest tire of administration system and follows all
the rules and regulations which are regulated by the central government. The authorised body
keeps control of specific districts and towns.
Voluntary sector: It is also known as non-profitable organisations which work for social welfare.
The Companies which comes under this sector does not earn the profit. The major objective of
this industry is to help poor people who cannot earn their livelihood (Wetherly and Otter, 2014).
Charitable trusts and old aged homes are the biggest examples of the voluntary sector. Cancer
Research UK is the charitable trust which is located in the UK.
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