Business and Business Environment

Business and business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1 ................................................................................................................................................1
P1) Different types and purposes of organisations; public, private and voluntary sectors.........1
P2) Size and scope of a range of different types of organisation ...............................................3
LO 2 ................................................................................................................................................5
P3) Organisational function and structure ..................................................................................5
LO 3.................................................................................................................................................7
P4) Positive and negative impacts of macro environment .........................................................7
LO 4.................................................................................................................................................9
P5) Analysis of internal and external strengths and weakness...................................................9
P6) Interrelation of strengths and weaknesses with external macro factors ...........................11
CONCLUSION .............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Business environment can be defined as a combination and sum total of all the internal
and external factors that have capability to create significant effect and influence on working or
business operations of organisation. The main factors that are included in business environment
are clients and suppliers, business partners and owners, competitors, laws and regulations of
government and policies of political authorities, technological change, economic and social trend
and all other related parties and stakeholders that create influence on performance of
organisations (Ayios, 2018).
This assignment is based on business and business environment and three organisations
are selected form different sector of economy to accomplish this report. From private sector
Iceland foods Ltd is taken, from public sector British Business Bank is selected and as a
voluntary organisation Leonard Cheshire Disability is selected. In this report different types, size
and scope of organisations is included with interrelation among various function and
organisational structure. Beside this a PESTEL and SWOT analysis is also there to evaluate and

analysis the various macro factors and internal strength and weakness. And finally, this report
also consist interrelation between internal strengths and weakness and macro factors.
LO 1
P1) Different types and purposes of organisations; public, private and voluntary sectors
The success, performance, growth and profit level of an organisations is directly depends
on the features and characteristics of its business environment which includes all the related
parties and factors tat create influence on operation of a company (Baporikar, 2019). Thus,
proper understanding of business environment is necessary for all organisation to have better
position in target market. In every business environment various types of organisations are found
a description of which is provided below:
Public sector
The organisations of this section are operated and managed by the government dan other
legal authority of a nation. The main purpose of organisation belongs to public sector is to
provide basic and public services to citizen and individuals of nations to maintain the standard
and convenience in their life. The main services provided by public organisation includes
education and health facility, safety and security through maintaining peace with the help of
military, army and police, and also provide public transportation and other facility.
Legal structure
On the basis of there legal composition and ownership public sector is categorise into
three types which are as follows:
Central government- These organisation are under the control of central government
and all its operations, functions and funding are managed by central authority of nations (Boone
and et.al., 2019).
State government- The firms and companies which are managed and handled by state
authority in which the maximum part of their operations are carried out belongs to this legal
structure of public sector. The main operations and overall management and funding of these
organisation falls under the jurisdiction of state government.
Local government- These are the organisations which are liable to local or municipal
authority and works at a smaller level up to local jurisdiction (Charter, 2017). Thus, these all
operations and control are in hand of local government or municipal operations.