Business and Business Environment.

Business and Business
Environment

Contents
INTRODUCTION...........................................................................................................................................3
PART 1.........................................................................................................................................................3
P1 Explain different types and purposes of organisations; public, private and voluntary sectors and
legal structures........................................................................................................................................3
P2/ M1 Explain the size and scope of a range of different types of organizations...................................5
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure...................................................................................................9
M2 Analyze the advantages and disadvantages of interrelationships between organizational functions
and the impact that can have upon organizational structure................................................................11
D1 Provide a critical analysis of the complexities of different types of business structures and the
interrelationships of the different organizational functions..................................................................12
PART 2.......................................................................................................................................................12
P4 Identify the positive and negative impacts the macro environment has upon business operations,
supported by specific examples.............................................................................................................12
P5 Conduct internal and external analysis of specific organizations in order to identify strengths and
weaknesses............................................................................................................................................13
P6/ M3 Explain how strengths and weaknesses interrelate with external macro factors.....................14
M4 Apply appropriately SWOT/TWOS analysis and justify how they influence decision making..........16
D2 Critically evaluate the impacts that both macro and micro factors have upon business objectives
and decision making..............................................................................................................................17
CONCLUSION.............................................................................................................................................18
REFERENCES..............................................................................................................................................19

INTRODUCTION
The business is regarded as a legal entity which is established with a sole motive to earn
profits and generate revenues. Every organization works in the business environment which
defines the external factors, institutions and forces which are outside the control of it and also
affects the decision making and functioning of the enterprise. The business environment is meant
as the forces that influence the operations of entity and are beyond the control of it. The
businesses are required making their working change according to the environment as they can
contribute a very little to change it. It is of two types, internal which is concerned with the
internal factors of the company such as employees, vision, mission, tec. While other is external
environment which includes political, social, legal, economic, etc. (Upadhyay and et. al., 2019)
The organization chosen for this report is Dyson, the technological company which is established
in the year 1991and is headquartered in United Kingdom. This report shall cover the types of
business organizations, its background and scope. Further it will add the interrelationship of
different departments, business environment analysis which will cover PESTLE analysis, SWOT
analysis and relationship between the two.
PART 1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.
The business organization is an entity which is aimed to carry on the commercial
enterprise. These enterprises are predicted on the system of law that governs the contract,
exchange, incorporation and property rights (Townsend, 2017). There are various types of
organizations which are discussed below-
Public organizations
These types of business entity are established for not earning profits which are aimed for
the sole purpose of doing welfare for the society. They are formed with the motive of doing
something which is for the benefit of the society. These are funded directly from the government

and are aimed to supply services to public for their benefit and not for any profits. These are
further categorized into different types which are illustrated below-
 Central government- These business organizations are controlled and managed by the
government of United Kingdom. They operate in whole country and has its operations
spread in whole of the state.
 State government- These businesses are also managed and controlled by the central
government of United Kingdom but they operate at the state level and within the state
boundary. The UK does not have any state government which can manage its operations
so the central government control it. Local government- It is established, owned and controlled by the local government in
United Kingdom. It operates within the ambit and boundary of the local area and not
beyond it (Rossignoli and Lionzo, 2018).
Purpose: Their main aim is to serve the community and offer product and services which are for
the benefit of the society, they are run by the taxes raised by the government.
Example: British Broadcasting Corporation (BBC).
Private business organization
These are the entities which are owned, managed and controlled by the private
individuals. They are only driven by the profits and these are solely for the benefit of the
stakeholders attached to it such as owner, investor, shareholders, etc. Various kinds of private
businesses are discussed below-
 Sole proprietorship- These are the entities which are established and owned by the
single person. It is opened at small scale as it is controlled and owned by one person. The
owner is personally liable for the debts and liabilities of the firm and the decision making
power rests on the hands of owner only.
 Partnership- It is owned, managed and controlled by two or more people who are also
known as the partners. They mutually decide to open a business firm which shall be
managed by all mutually. They decide to share profit, loss, decision making power,
capital contribution and other aspects via partnership agreement or orally.