Business and Business Environment

This report discusses the different types and purposes of organisations in the business environment, including public, private, and voluntary sectors. It explains the size and scope of these organisations and the relationship between different organisational functions and objectives. The report focuses on Tiger European, a coach and van hire business, and provides insights into its organisational structure and functions.

Business and business
environment
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Table of Contents
INTRODUCTION...........................................................................................................................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.............................5
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure. .....................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
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INTRODUCTION
Business environment can be defined as a combination of internal and external factors
that effect functioning of an organisation. It is the most important aspect for running any
business (Boone and et.al.,2019). However, it keeps on changing according to the situations
arising and thus, it is dynamic in nature. This report is based on Tiger European which is a
coach and van hire business that is operate by a family having an experience of over 300 years in
the industry. The report covers various organisational types, along with their scopes and sizes
inherit by them. Furthermore, relations between different organisations is analysed to know how
they are linked with respective organisation.
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.
Public sector company: Such companies are usually owned and operated by government of
respective country. For example, NHS is a public sector company that works for social welfare
of citizens.
 Purpose: The purpose of this company is to provide free healthcare services to the
citizens of the country.
 Supply of Services: It majorly supplies health regarding services to the individuals in
order to save their life.
Types of Public sector organisation
 Statutory Corporation: It is a corporate body created by state legislature or parliament
with the objective of defining powers needed to be followed by management for
accomplishing goals and objectives (Chan and Cui, 2016).
 Government Company: These companies are generally operated by government with
almost 51 percent or more paid up capital is held by government itself.
Legal structure: The legal structure of NHS is central government which aims at providing
healthcare services to needy patients.
Private sector company: These organisations are usually run and operated by private
individuals. The prior objective of this sector is to earn as much profit as possible. For example,
Tiger European is a private sector company which works for making profit.
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 Purpose: Purpose of this company is to provide transportation services to the customers
of UK including a range of vehicles like van, coaches, minibus, wedding cars and so on.
 Objective: Objective of Tiger European is to gain market leadership in United Kingdom
and attain a good market share.
 Supply of goods and services: Tiger European offers safer and flexible transportation
within the UK.
Types of Private sector organisation
 Sole Trader: It is a kind of business which is operated and controlled by single owner
who is responsible for directing all kinds of business decisions. Dave's coach business in
the given case is one of the example of sole trader business.
 Partnership: It is a kind of business who is run and operated by two or more individuals
in order to gain profitability (Eijdenberg and et.al.,2015).
Legal structure: Legal structure of Tiger European is private limited company.
Voluntary Organisation: These organisations work in order to enrich and benefit individuals
living in a society. The main source of funding for such non-profitable organisations are
charities. Oxfam is a voluntary organisation.
 Purpose: Purpose of Oxfam is to provide solutions for injustice of poverty. They focus
on implementing change in a society.
 Objective: Their objective is to provide services to the children in order to secure their
future and to reduce difficulties from their life.
 Supply of Services: Being a non – profitable organisation, it provide solutions to poverty
face by individuals.
Types of voluntary organisation:
 Charity: An organisation which provide funds for needy individuals (Gupta, 2013).
 Trustee: Trustee is an individual who have the authority to control all business
operations of the organisation.
Legal structure: Legal structure of Oxfam is charity based organisation.
P2 Explain the size and scope of a range of different types of organisations
Scope and size of business organisation is different which determine the profitability of
respective organisation in long run.
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Private Limited: It is a part of country's economic system through which profit can be
generated. Tiger European is a private sector organisation (Hamilton and Webster, 2018).
 Market share: Tiger European company covers a large area of UK by establishing in
different locations.
 Scope: The scope of Tiger European company is that it provides a fleet of 30 vehicles
including minibus, coaches and cars.
 Growth: The main objective of this organisation is to expand its business in different
parts of the world.
 Mission: Mission statement of Tiger European states that company needs to produce
environmental friendly vehicles.
 Vision: To gain customer potential and expand their business effectively is the vision of
respected company.
Public limited company: These companies are run by government with a motive to serve
citizens of the country. National health service is a public limited company (Hillary, 2017).
 Market Share: Business activities of NHS is carried out in England with an aim of
providing healthcare services.
 Scope: It is running its business with an objective of serving large population. It provides
healthcare services to citizens of the country.
 Mission: The mission is to provide quality care to the individuals in order to lead a
healthier life.
 Vision: NHS vision is to deliver healthcare services to needy citizens.
Voluntary Sector: They usually work with a motive of serving society. Sources of fund for such
kind of organisations is charity. Oxfam is an example of Voluntary sector.
 Market Share and Scope: Oxfam is working with 20 independent charity organisation
with a motive of reducing poverty and provide support to citizens of country.
 Mission: Primary mission of Oxfam is to build a poverty free environment.
 Vision: A world without poverty is the clear vision of Oxfam.
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
Organisational structure is a framework which outlines how different business activities
are directed for accomplishing desired goals and objectives (Kosteck, 2013).
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Organisational followed by different companies:
 Tiger European is a private limited company. It follows a flat organisational structure.
Such organisational structure leads to motivation of employees for making business
decisions and performing given tasks.
 NHS being an non- profitable company follows hierarchical organisational structure. It
has a long chain of command from top to bottom level.
 Oxfam is a voluntary sector which follows flat organisational structure for carrying out
activities in an efficient manner.
Functions relate to overall organisation mission and objectives:
There are different departments which are related to each other within an organisation.
They specifically aims at accomplishing desired business objectives (Taneja and Toombs,
2014). Relationship between different department of an organisation is mentioned below:
 Marketing and Finance department: Both departments of Tiger European company co-
ordinate with each other for acquiring desired goals and objectives. Marketing
departments aims at identifying customers demands and requirements. Finance
department fill financial requirements.
 Production and Marketing department: It is the marketing department only which
communicate the exact demands of customers. Production department produce goods
according to the requirements of customers. In context to Tiger European company,
production department provide goods according to the guidelines.
However there are other business organisations which interacts for effective delivery of desired
outcomes within an organisation (Schaltegge and et.al.,2016).
CONCLUSION
From the above study, it can be concluded that business environment is necessary for an
organisation in order to carry out necessary tasks and operations. It is a sum of macro and micro
factors which influence various activities of organisation. Such factors can limpact and
organisation in both positive and negative manner. At last,Evaluation is done for analysing
relationships between various departments of organisation.
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REFERENCES
Books and journals
Boone, L.E., and et.al., 2019. Contemporary business. John Wiley & Sons.
Chan, T.S. and Cui, G. eds., 2016. Asian businesses in a turbulent environment: uncertainty and
coping strategies. Springer.
Eijdenberg, E.L., and et.al., 2015. The effect of decision-making on the growth of small
businesses in an uncertain environment. InAcademy of Management Proceedings. (Vol.
2015, No. 1. p. 10915). Briarcliff Manor, NY 10510: Academy of Management.
Gupta, A., 2013. Environment & PEST analysis: an approach to the external business
environment. International Journal of Modern Social Sciences. 2(1). pp.34-43.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hillary, R., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Kostecki, M. ed., 2013. The durable use of consumer products: new options for business and
consumption. Springer Science & Business Media.
Schaltegger, S., and et.al., 2016. Business models for sustainability: Origins, present research,
and future avenues.
Taneja, S. and Toombs, L., 2014. Putting a face on small businesses: Visibility, viability, and
sustainability the impact of social media on small business marketing. Academy of
marketing studies journal. 18(1). p.249.
Vitez, O., 2015. The Effect of the Internet on Modern Businesses & Corporations. Retrieved
July. 22. p.2015.
Wetherly, P., 2014. The business environment: themes and issues in a globalizing world. Oxford
University Press.
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