business and business environment

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION.......................................................................................................................................3
LO1.............................................................................................................................................................3
P1 Different types and purpose of organizations public, private and voluntary sectors and legal
structures.................................................................................................................................................3
P2 Size and Scope of a range of different types of business....................................................................6
M1Analyse structure, size and scope of different organizations link to business objectives and product
and services offered by organisation........................................................................................................8
LO2.............................................................................................................................................................8
P3 Relationship between different organisational functions and how they link to organisational
objectives and structure...........................................................................................................................8
M2 Analyse advantage and disadvantages of interrelationships between organisational functions and
impact upon organisation structure........................................................................................................10
D1 Provide critical analysis of complexities of different types of business structures and
interrelationship of different organisation structure...............................................................................10
LO3...........................................................................................................................................................11
P4 Positive and negative impact of macro environment upon business operations................................11
M3 Apply PESTLE model to support a detailed analysis of macro environment..................................12
LO4...........................................................................................................................................................13
P5 Internal and external analysis of specific organizations to identify strength and weaknesses...........13
P6 Explain strength and weaknesses interrelated with external macro factors.......................................14
M4 Apply SWOT analysis and justify how they influence decision making.........................................15
D2 Critically evaluate the impact of both macro and micro factors upon business objectives and
decision making.....................................................................................................................................15
CONCLUSION.........................................................................................................................................16
REFERENCES..........................................................................................................................................17

INTRODUCTION
Business environment is the integration of all the internal and external factors that helps
the organisation to fulfill the customer’s needs and wants and sustain in the marketplace. It can
includes the various terms of the business environment that can impact the operations of an
business enterprise such as supply and demand, customer expectations, clients, suppliers,
government, innovation in use of technology, changes in economic and political conditions etc.
This report is based on enhancing the knowledge related to the various types of organizations
with their size, scope of legal structure. It also helps in showing the relationship between
organisational functions and to link it with its structure and objectives. It helps in giving the
positive and negative impact of macro environment so it easy to notify the strength and
weaknesses. At last it shows the interrelation of strength and weakness with their external
factors(Belás and et. al., 2015).
LO1
P1 Different types and purpose of organizations public, private and voluntary sectors and legal
structures
Private organisation – It refers to any type of organisation which are operates for earning the
profits and that are not controlled by the government. It includes the example of Tesco Plc. that
is one of the famous superstore in the UK with the motive of earning profits(Aithal, 2016).
 Purpose – The main purpose of operating the business in private sector is supply the high
demands of the products with innovation that can satisfies the customers needs and earns
a high amount of profits. For example- Tesco is operate and run their business to satisfy
the needs of customers and earns revenues.
 legal structure
o Sole proprietorship – It refers to that business organisation in which a person is
the sole owner of earning the profits and bearing the risk. In this one person have
the authority to take decisions for holding the opportunities and reducing the
threats. for example- beauty salon, carpenters etc.
o Company – It is an legal entity that is framing by the group of individual that can
engage in a particular business to earn a high amount of profits and revenues. In

this revenues are divided into the shareholder as per the rules and regulations that
is made by the company. in this if the funds are raises from the general public
than it is called public company whereas if the money is invested privately than it
is called private company.
o Partnership – It refers to that term in which two or more than two persons are
included to form business units and done their operations for effective business.
In this partnership deed helps in setting the rules and guidelines so that profits and
liabilities are divided and shares.
Public organisation – It refers to that term in which business is under the control of the
government and managed by them. The best example of public organisation is UKTV that
broadcast the various shows and news to aware the people(Prajogo, 2016).
 Purpose – the main purpose of this is to thinks for the welfare of the society with the
secondary aim of earning the profits and revenues. in this UKTV is providing the various
shows and news and many other programs to create the awareness in the society and
earns a high amount of profits with customer satisfaction to meet the expenses.
 legal structure
o Center – It is the central body that can regulate and monitor whole operations by
providing the authority to the various other departments to value the every
department functions.
o Local- This legal structure is delegated only for controlling the local community
and their welfare.
o State- This structure is accountable for managing and controlling the state and
follows the orders of the central government.
Voluntary organisation – This refers to that organisation which is working for the welfare of
the country and the society by giving the numerous services and products to the person who
needs them. The best example is Macmillan cancer supports that are a famous care center that is
run under the charity in UK(Prajogo, 2016).
 Purpose – The main purpose of the organisation is to help the people of the society with
the motive of caring not for profits. They help in solving the problems of the society that