Business and Business Environment

BUSINESS AND BUSINESS
ENVIRONMENT

BUSINESS AND BUSINESS ENVIRONMENT
INTRODUCTION
TASK 1
P1. Different types of organizations with their Purposes and Legal Structures
P2. Size and Scope of various types of Organisations
TASK 2
P3. Interrelationship between different Organisational Functions and Their Linkage with
Organisational Objectives and Structure
TASK 3
P4. Positive and Negative Impact of PESTLE Analysis on Macro Environment of Public and
Private Sector Organisation
TASK 4
P5. SWOT Analysis of Both Public and Private Sector Organisation
P6. Interrelationship of External Macro Factors with Strengths and Weaknesses
CONCLUSION
INTRODUCTION
Business Environment consists of all the factors which are not in control of business
organizations. Such factors are there in it which is responsible for circulation of both internal and
external operation in an organization. It involves shareholders, customers, suppliers,
technological advancement and existing market condition. Various business organizations like
public , private and voluntary sector has to keep themselves aware about changes in market
situation and has tom quickly has to respond over it. Tesco PLC is an public limited company
which is one of the biggest retailer of grocery products, which has ranges of household products
and non households products. This file is based upon public, private and voluntary sector
organization and their size, scope, purpose and legal structure is covered. In the end external
factors and strengths and weaknesses are explained.
TASK 1
P1. Different types of organizations with their Purposes and Legal Structures
Organization is human associations that have been formed in order to achieve a particular
objective or goal. Mai n aim of these organizations is to earn profit and use it for social welfare
of people present in the society. Various types of organizations are explained as follows:

Public sector Organizations: These types of organizations are those which are owned
and funded by government on behalf of public. Primary objective of such public organization is
not only to earn profit. Their main focus is over welfare of public and society. Example for such
organizations is BBC. It is a public organization that gives broadcast services all over the world.
Purpose – Purpose of public organization is to provide product and services to public
with optimum utilization of resources (Kato. and Charoenrat, 2018).
Legal Structures
a. Central Government: Funds are collected through Income tax generated from public.
b. Local Government: Funds collected in the form of Community charges and are
known as Council Tax (O’Rourke, 2017).
c. State Government – Specific powers that is applicable on particular departments.
BBC is central government owned public sector organization.
2. Private Sector Organizations - Such organizations are controlled by an individual
who is private. Owner of private organization is an individual or a group of individual. This can
be understood through an example of Tesco PLC. It is an private organization indulge in retailing
business in various countries. Purpose – Aim of private organization is to earn profit and to provide adequate
competition to public sector based organizations. This encourages efficiency.
 Legal Structures:
a. Sole Proprietorship: In these types of organization thee person himself is responsible
for providing of goods and services to its customers. All this is done with the aim of earning
profit. It is necessary for obtaining of license from local authority in these kind of business
organization (Viesi. and et. Al., 2017).
b. Partnership: Partnership is an association in which more than two individual come
together to for an organization. Under this an agreement has to be signed by partners which
bounds to bear both profit and loss together.
Limited Company : The entity needs to be registered to become a limited company. The
limited companies profit belongs to the company not to the shareholders. Shareholders get the
profits in the form of dividend The corporation tax must be paid by company on the profits
earned in each year.
Tesco PLC is a limited company and is governed by company laws.

3. Voluntary Organizations – Voluntary organisations involves a group of individuals
who willingly enter into an agreement to form a organisation in order to accomplish a objective.
Oxfam is a global charitable organisation structure who works towards reducing the poverty in
the nation. Purpose : The aim of Voluntary organisation is to work for the betterment of social
welfare. Social welfare not only includes development of individual but also growth of
society as a whole.
 Legal Structure –
a. Trust – it is not an legal entity which means they cannot enter into agreement under
their own name. So, that is why trustee becomes personally liable.
b. Unincorporated Association – These association is not a legal entity. Hence there is
no limitation of liability as they entered into the agreement on the behalf of charity and are
personally liable.
Oxfam is a trust based voluntary organisation.
Small And Medium Size Enterprises: These are those types of enterprises which are of non-
subsidised and independent firm. Employee under this are very few than given number of
employees. AZIO is an SME which deals with formation of electronic key boards.
Purpose- Aim of these organizations is to set-up business for establishing itself in the market.
Gain profit.
Growth of International Business Environment
As continuous production of similar products in market has lead to a pointof saturation in
the market. This has made increase in growth at global market. During past few years trade
barriers has been implied by government which has opened doors for doing business in
international market. Also profitability can be earned for long-run from this. Now businesses are
able to diversify themselves globally.
P2. Size and Scope of various types of Organisations
British Broadcasting Corporation (BBC) : It is an public owned company means is
owned by government. They are largest broadcaster all over the world. Funds generated by
licenece fee that is paid by UK households (Rahbauer. and et. al, 2016).