Interrelation of Business Environment Factors

The provided study concludes that the business environment has important and effective factors for business growth. Different types of organizations, such as public, private, and voluntary, play a crucial role in the economy. The assignment also discusses various external factors like political, legal, environmental, technological, economic, and social, which have an impact on businesses. It highlights the importance of improving technological factors to achieve core values and benefits of companies.

Business and business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Explain different types and purpose of organization.............................................................1
P2 Explain the size and scope of different types of organization...............................................3
LO 2.................................................................................................................................................5
P3 Explain relationship between different organizational functions and its link with objectives
and structure................................................................................................................................5
LO 4.................................................................................................................................................7
Covered in PPT...........................................................................................................................7
LO 5.................................................................................................................................................7
Covered on PPT..........................................................................................................................7
CONCLUSION................................................................................................................................7
References........................................................................................................................................9

INTRODUCTION
Business environment is integral part of the effective and efficient management of
business. This help to determine the various factors and aspects of business which are important
for successful within the environment. Business environment is give the perfect shape to
business segment with product line (Argyris, 2017). The present report is based on the “Tesco”
which is the British multinational groceries and retail firm. Study lays explain by the different
types and purpose of public, private and voluntary sector and legal structure. It is will be
explained by the size and scope of a different range and types of organization. Study will explain
by the relationship between different organizational functions and their objectives and structure.
The presentation will identify by positive and negative impacts of macro environment on
business environment. To analysis the macro environment presentation will explain by PESTEL
analysis. This will also explain by external and internal analysis of Tesco by identifying strength
and weakness. It will also explain interrelation between strength and weakness with the external
factors.

LO 1
P1 Explain different types and purpose of organization.
There are three types of organization which have specific purpose to run business and
organization at market place. The different types of organization such as public, private and
voluntary organization. Those organizations are as follows:
Public sector organization:
Public company is generally is operated by the government with the existing facilities. It
is the part of both public services and public organization. The public services are includes the
various services which are provided by the government to peoples either direct or by financing
private provision of services. Public services such as education and medical facilities to poor
peoples who are not able to pay money in at against of this (Brunsson and Olsen, 2018). Public
organization are generally controlled funded agencies, other entities like public program, goods
and services. For example: British petroleum is public limited company. It is the gas and oil
company with score sixth largest company by market capitalization. The company is operates in
all areas like production, refining, distribution and marketing. Company have aim to build
understanding needs and wants of customers. The company have purpose is to deliver the best
quality of product and services which adding values of their business present and future.
Private sector organization:
Private organization is generally operated by individual person. The private sector
company is the important part of the economy which is distribute products and services at
marketplace for earn money and build positive goodwill. There are many kinds of privates sector
enterprises which are includes sole ownership, small and medium-sized, large company. For
example: Tesco is the private company which is British multinational groceries and general
merchandiser retailer at UK. It is 3rd largest retailer in the world which is measures by gross
revenue (Chang, 2016). The private company Tesco has purpose which is to helping peoples by
providing the best quality and quantity of product and services at marketplace. Company have
sell goods and services by satisfying needs and wants of customers in effective manner.
Voluntary sector organization:
Voluntary sector is the union of individual group who are entered into an agreement to
accomplish a purpose. It is also referred the non-profits and non-government companies like civil
society and charitable trust firms. This types of companies are also seeks for funding from

government and corporate support. This types of companies are generally provided the various
services to customers and peoples which are free. Many of the charitable organization is the
types of non-profit company. For example: The cancer research centre is a type of voluntary
sector firm. The cancer research centre is provide free medical services to peoples by study on
issues which are faced by peoples. It is the cancer study and awareness charity in the UK. The
company have main motto to work together and will beat cancer. The main purpose of
organization is to decrease death of cancer peoples. It is the worlds largest and independent
cancer research charity. This company have need to make focus on research action into diagnosis
and treatment of these diseases (Erasmus, Strydom and Rudansky-Kloppers, 2016). This carried
out the action in the educational institution and various branch hospitals and offices across the
United kingdom.
Those are the different types of organization with that's purpose to run this organization
at marketplace.
P2 Explain the size and scope of different types of organization.
As per the size and scope have three types of organization are micro, medium-sized and
large enterprises. That are as follows:
Basis Micro enterprise Small-medium size
enterprise
Large enterprise
Meaning The micro business
that is operates with
fewer peoples. In this
business have fewer
than 9 employees. For
example: Wiser is
micro enterprise
company which is
operated as
recruitment company.
The small-medium
size company is
privately own
companies like sole
ownership with some
workers. For example:
Harvey water softener
company is
manufacture of water
softener (Hair Jr and
et.al., 2015).
The large scale
company have
controlled finance and
business activities at
higher level. This
types of company is
highly focused on
innovation and
technology
advancement for run
and done work with
positive result. For

example: HSBC is the
largest British
multinational banking
and financial service
holding company.
Goals The goal of micro
enterprise business is
to decrease ongoing
business expenses and
create new customer
services.
Other hand, wiser
company have goal to
provide best job
opportunity to job
seekers.
The small-medium
size company have
goal to survive in the
market place and look
towards profit
earnings.
Other hand, Harvey
water softener
company have goal to
provide bes quality of
water softener to
peoples in effective
manner. Also, have
gaol to remove
chemical elements
form water.
The goal of large
company is have goals
to expansion of their
business with the help
of innovation.
Other hand, HSBC
company have gaols is
to expansion and
profitability by
commitment to local
investment and
excellent customers
services.
Size and scope The company have
less than 10 employees
and this company have
endless scope for new
market entrants and
innovation.
In these types of
company have 50 to
250 employees are
work in company for
achieve goals and
objectives of water
softener company
(Hamilton and
Webster, 2018).
In this types of
company have more
than 500 employees.
They are work
together for achieve
goals and objectives of
company.
The bank has great
opportunities and

This company have
great scope in market
because peoples are
want pure water for
that they purchase
water softener.
scope in market
because they have
provided various
financial and non-
financial services to
their customers.
Market share This type of enterprise
have low market share
as compare to small
and large company.
The company has less
than market share
form large company
and more than from
micro enterprise. The
company have market
share 2052 million in
the 2017.
The company have
great market share is
sold in the last few
years.
Growth Wiser company is
achieve growth at
marketplace by
providing best services
to job seekers.
Harvey water softener
company has achieved
their goals and
objectives in effective
manner by increasing
consumption of water
softener across globe.
HSBC bank is grow in
last few years in
effective manner. This
creates various
services for customers,
and they provide this
in effective manner
with great result of
work.
As per the size there are had three types of company which are micro, medium and large
company. They have specific growth and scope at marketplace by providing the best services
and products to customers in effective manner.

LO 2
P3 Explain relationship between different organizational functions and its link with objectives
and structure.
There are different types of organizational structure which are help to make proper
structure of work in effective manner in order to achieve goals and objectives of company. The
different types of organizational structure are as follows:
Flat organizational structure:
Flat organizational structure is the best and effective for use in the organization. This
types of organizational structure is mostly adopted by the small companies to work in effective
manner. The most important thing about structure is many levels of the middle management is
eliminated. In these types of structure employees are take decisions as per requirement who are
enabled in fast. This structure is well and effective for small and medium companies because in
the small companies efforts and work are relatively (Hillary, 2017). For example: wiser is small
company which is followed flat organizational structure. This structure have advantage and
disadvantages which are as follows:
Advantages:
 This promotes the faster decision-making for the team management in effective manner.
 This allows the clear communication between the peoples and team members.
Disadvantage:
 This creates problems for peoples because in this have lost control.
 In this employee and work relations are suffers.
Hierarchical organizational structure:
The hierarchical organizational structure is the most effective and important chart type. In
this structure employees in a grouped with each member of team and have clear supervisor. In
this have few factors which are consists in these types organizational structure like functional,
geographical and products. For example: Tesco company is follows the hierarchical
organizational structure for smoothly run business and its operations in company (Hierarchical
organizational structure, 2018). This structure is highly effective and valuable for Tesco
company which is divided into many parts for ensure about the work. This structure have
advantages and disadvantages which are as follows:
Advantages:

 In this structure have clear communication command with the team members.
 This creates the clear path for advancement in effective manner.
Disadvantage:
 In this have poor flexibility which is created problem for team work.
 Communication barriers is also had in this because success is depends on the quality of
internal communication within it.
Divisional organizational structure:
In the divisional structure, each organizational function has own division of work. Each
sector and division part have the necessary resources and functions. In these types of structure
work and employees are properly divided into multi divisional structure. For example: HSBC
bank is follows the divisional organizational structure for done their work in effective manner
(Prajogo, 2016). This organizational structure have advantages and disadvantages which are as
follows:
Advantages:
 The advantage of this is to work in their separate sections like human resource, finance
and R&D departments.
 To work done in effective and perfect manner.
Disadvantage;
 In different employees are work in same task and projects for increase productivity of
work.
Those are the different organizational structure which are link and interrelate with objectives and
goals of company. It is very important to achieve proper goals and objectives of company to link
with the organizational structure because functions and operations of organization have focus on
organizational objectives. Tesco's organizational structure is clearly linked with the company
organization objectives and goals. There are various departments of company which are
interrelated with each other like human resource, finance, R&D and marketing departments. The
interrelation between different departments are as follows:
Human resource and Finance department:
The Human resource and finance department are interrelated with each other. Human
resource department of Tesco is highly responsible for hire and select best and eligible
candidates for team of finance (Wheelen and et.al., 2017). Other hand, finance department is

allocated the funds to HR team for expenses of campus placement. Both department are
interrelated and fulfil each other requirements.
R&D and marketing department:
The marketing and research or development departments are interrelated with each other
in organization. Marketing department is responsible for satisfying the needs of customers by
providing the best quality of product and services. Other hand, research and development
department is responsible for provide correct information of market by research.
LO 4
Covered in PPT.
LO 5
Covered on PPT.
CONCLUSION
From the above study it had been concluded that the business environment has important
and effective for business and its growth factors. It had been concluded that the different types of
organization like public, private and voluntary organization has played an important role in
economy, and they also have purpose to run business in effective manner. The different types of
organizational structure has helped to done work in effective manner by making proper schedule
for work. There has various external factors which has impact to business and its growth. Those
factors have political, legal, environmental, technological, economical and social. The external
and internal environmental factor has interrelated with each other. Improving in technological
factor has effective for achieve core values and benefits of company. The strength of company
has interrelated with weakness.

References
Books and Journals
Argyris, C., 2017. Integrating the Individual and the Organization. Routledge.
Brunsson, N. and Olsen, J. P., 2018. The Reforming organization: making sense of
administrative change. Routledge.
Chang, J. F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Erasmus, B., Strydom, J. W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Hair Jr and et.al., 2015. Essentials of business research methods. Routledge.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Wheelen and et.al., 2017. Strategic management and business policy (p. 55). Boston: pearson.
Online
Hierarchical organizational structure. 2018. [Online]. Available through:
<http://www.businessdictionary.com/definition/hierarchical.html>