Business and business environment TABLE OF CONTENTS INTRODUCTION

Business and business environment | TABLE OF CONTENTS INTRODUCTION 1 LO11 P1 Purpose of different types of organisation1 P2 The size and scope of a range of different types of organisations. 3 LO25 P3 Relationship between different organisational functions 5 LO36 P4 Pestle analysis of Cadbury 6 LO46 P5 swot analysis of Cadbury 6 P6 relation between swot and pestle 6 CONCLUSION 7 REFERENCES 8 INTRODUCTION Organisation is a place where multiple people works for achieving business

Business
and
business environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Purpose of different types of organisation.............................................................................1
P2 The size and scope of a range of different types of organisations.........................................3
LO2..................................................................................................................................................5
P3 Relationship between different organisational functions.......................................................5
LO3..................................................................................................................................................6
P4 Pestle analysis of Cadbury.....................................................................................................6
LO4..................................................................................................................................................6
P5 swot analysis of Cadbury.......................................................................................................6
P6 relation between swot and pestle...........................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Organisation is a place where multiple people works for achieving business objectives.
Purpose of different people in organisation is same to have sustainable growth across the world.
Organisation work on different organisational structure like franchise, joint venture and
licensing. Business environment analyses macro factors that affects the working of organisation.
Present study lay emphases on Cadbury. It is one of the famous brand in confectionery items like
chocolates, beverages, ice creams and candies. It operates worldwide i.e., approx in 50 countries.
It has headquartered in London and founded by John Cadbury in 1824. Cadbury launches its
most favourable product dairy milk in 1905. This report explains purpose, size and scope of
different types of organisation. It includes a presentation on pestle and swot analysis of Cadbury.
It also explains the relationship between one department of organisation to other department.
LO1
P1 Purpose of different types of organisation
An organisation is an entity which consists of multiple people and works on a particular
purpose for achieving objectives or goals. World has different types of organisation like private,
public and voluntary. Some organisation works to earn profit or some work for social help or
well-being of others only like charitable trust. Let's take an example to understand the purpose of
different type of organisation:
Public sector: - it is a not for profit organisation. NHS(national health service) is a public
sector. It provides free health services for well being of citizens. It does not want to earn profit.
It is a government authorised organisation which works for the welfare of people (Maduenyi and
et.al., 2015). Purpose of NHS is to provide a wide and comprehensive ranges of services related
to health. People just need to pay only prescription charge otherwise they are exempted from
other medical charges. Not for profit organisation are tax free. These type of organisation get
fund through either sponsorship or donations or other investments.
Private sector : - it includes profit organisation means these type of sector work only for
earning profit. Let's take an example of Cadbury company which manufacture chocolates as per
taste demanded by public. Purpose of Cadbury is to earn profit through selling of products. It
focuses on meeting customer needs and expectations. But they need to follow legal and financial
structure made by government authorities (Lee, 2017). Profit earned by Cadbury reinvested in
launching new products or modification in existing products for earning more profit.
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Voluntary Sector : - it includes non-government organisation. These are also non-profit
organisation. It does not need to follow state or central government rules. For example, Kick
starter is an NGO who works for helping musicians, designers, creators, artists. It helps them to
make their idea in reality (Prajogo and et.al., 2016). The purpose of kick starter is to provide
platforms for such types of creators and support them unconditionally. It is like an operational
NGO. They get fund through state government or donations.
SMEs : - It stands for micro, small and medium enterprises(business).
 Micro enterprises- in this, business operates on very small level where investment rate is
low. These type of business found in developing countries. (Freel, 2017)
 Small enterprises- these type of business either formed through partnership or sole
traders. Fewer employees are involved and responsible for business success and failure.
 Medium- based enterprises- these type of business are emerging one. It is a part of
vibrant and dynamic sector of world economy.
Legal structures: - there are different range and type of legal structures present which are
explained below:
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Illustration 1: legal structure
Source: financial style 2016)

 Sole trader: it is a legal setup owned and controlled by a single businessman. It can be a
small business or big one but profit or loss are incurred under them only. No person from
outside is responsible. Single person is creator, organiser, controller, operator, decision
maker, accountant and all.
 Partnership: business is owned and controlled under two or more than two persons.
Money is invested by each shareholder and respectively profit is divided in between them
(Teece, 2018). Role and responsibility are distributed to each partner of business.
 Private limited companies: these are the private business units where shares limit
liability. Shares are not traded publicly means not included in the list of stock exchange.
 Public limited companies: these type of legal structure can sell and buy trade shares for
free on stock exchange. Small businessman can afford to trade their share public because
for public sharing, cost is too high.
P2 The size and scope of a range of different types of organisations.
National health
service
(public sector)
Cadbury
(private sector)
Kick starters
(Voluntary sector)
Background NHS is in England a
service provider of
health services. It is
established in 1948.
It is a British
multinational
confectionery
company. It is founded
in 1824 by John
Cadbury.
It is a public benefit
corporation founded
by perry Chen and
Charles Adler. It is
launched in 2009.
Product and services It provides different
ranges of services to
European residents for
free. (Bason, 2018)
Cadbury has products
like chocolates,
beverages, ice creams
candy, bubble gums.
It provides a global
crowdfunding
platform for artists,
designers, creators.
Size It is England, Wales,
northern Ireland. It is
working in approx 33
countries.
It operates globally
and approx more than
50 countries.
It operates all over the
world including US,
UK, Australia,
Sweden, etc.
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Scope NHS scope is to
operate worldwide so
that desire people who
are in need to have
health services can
meet NHS easily.
Cadbury scope is to
increase the
distribution network
worldwide.
Scope for Kick starters
that back and failure
creators can try at once
through platform
provided by kick
starters.
Mission Mission of NHS is to
provide qualitative
treatment to every
citizen and to build the
trust.
Cadbury mission is to
increase market share
and profitability by
meting customer
demands.
Kick starter mission is
to full fill desire needs
of people who want a
platform to show their
talent.
Visions Vision of NHS is to
operate in every
country and want a
sustainable
development in
services provided.
Vision of Cadbury is
to have sustainable
growth and one of the
top favourable brands
in confectionery items.
Kick starter vision is
to have increased
number of people in
their organisation and
wants to build trust
among public.
Objective Objective of NHS is to
increase the number of
people in their
organisation so that
qualitative health
service is provided to
citizens.
Objective of Cadbury
is to increase the sales
of product more than
the last year.
Objective of Kick
starter is to provide a
successful platform to
people who are need to
show their talent.
Legal structure NHS has a licensing
legal structure. It
works under rule and
regulation made by
government.
Cadbury has private
limited company legal
structure in which
shares are not included
in stock exchange
(Finkler and et.a.l.,
Kick starter follows
hierarchical legal
structure.
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2018).
Stakeholders Stake holders of NHS
are managing
authorities, doctors,
ward boys, nurses,
peons, patients.
Stake holders of
Cadbury are marketing
employees, production
employees, R & D
employees, finance
employees and
customers who receive
products.
Stake holders of kick
starter are customers
and managing
authorities who avail
and provide platforms
respectively.
LO2
P3 Relationship between different organisational functions
As Cadbury is a British multinational company which operated worldwide and avail the
products to approx 50 countries. Therefore, it has Structure business unit organisational
structure. In this, separate departments are made to operate in different fields. It increases
awareness among public by having different departments and the work become qualitative and
efficient. But every department needs to be correlated with other department to have effective
production and sales of product.
Finance department: this department handles the financial stock of products which
results about productivity and profitability of organisation. Finance department need to
coordinate with research, production and marketing department to set the price of products.
Marketing department advices finance about customer expectation so that all class people can
afford to buy products. Production department of Cadbury gives information regarding
investment cost made in manufacturing of products. Research department of Cadbury gives
information regarding economic news that going in the nation. Inflation rate influence the price
of products (Prajogo and et.al., 2016). So, its necessary to analyse inflation and growth rate of
country for pricing of products.
Production department: this department is responsible for manufacturing of products
and also for maintaining quality of products. Marketing department of Cadbury gives
information regarding what customer wants and what is the taste desired by customer.
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Production department keep in mind and produce products accordingly. Research department
gives mechanism for producing products with the latest technology so that process become easy
and provide qualitative products. Production department of Cadbury helps marketing department
for delivering of products within scheduled time by producing products on time.
Operation department: this department is responsible for packaging, dispatching and
delivering of products to customer. This department need to coordinate with sale and marketing
for the information of customers. And also with production department for taking the products
for attractive packaging. Dispatching products on time is main role of operation department of
Cadbury. Operation department also solve the queries generated by customers. It is the
responsibility of operation department employees to satisfy customers and make them
comfortable to use products. For solving queries related to ingredients used in producing
products need to interrelate with production department. (Laudon and et.al., 2016)
Human resource department: employees who work in organisation are responsible for
growth and productivity. Employees are hired through human resource department. Skilled and
talented candidates is need of Cadbury. Marketing department of Cadbury tells HR department to
hire good communication skills candidate so that attractive interaction takes place between
marketer and customers. Production department require those candidates who have technological
knowledge regarding machines. Hence, HR fulfils all department needs and responsible for
candidate selection process. It is a role of HR to provide rewards and performance appraisal to
existing employees who work hard and smart for achieving the business objectives of Cadbury.
LO3
P4 Pestle analysis of Cadbury
Covered in presentation.
LO4
P5 swot analysis of Cadbury
Covered in presentation
6

P6 relation between swot and pestle
Covered in presentation
CONCLUSION
This report summarised about different type of organisation and their legal structure. It
has done an analysis of comparison between public, private and voluntary organisation related to
their size and scope. It included a presentation which explained pestle and swot analysis of
Cadbury that helps in decision making process. It explained about different legal structures that
are adopted by different types of organisation for improvement in working process. Structure
business unit organisational structure makes Cadbury unique among other favourable brands and
leads to success in exporting products effectively. Relation between marketing, finance, research,
production, human resource, operation department is analysed and also explained how this
interrelation affects the decision making process of management authorities.
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REFERENCES
Books and Journals
Bason, C., 2018. Leading public sector innovation: Co-creating for a better society. Policy
Press.
Chelladurai, P. and et.al., 2017. Organisational structure and theory of non-profit sport
organisations. In Understanding Sport Management (pp. 45-61). Routledge.
Finkler, S.A. and et.a.l.,, 2018. Financial management for public, health, and not-for-profit
organizations. CQ Press.
Freel, M. and Robson, P.J., 2017. Appropriation strategies and open innovation in
SMEs. International Small Business Journal. 35(5). pp.578-596.
Laudon, K.C. and et.al., 2016. E-commerce: business, technology, society.
Lee, I. ed., 2017. The Internet of Things in the Modern Business Environment. IGI Global.
Love, J.H. and et.al., 2016. Experience, age and exporting performance in UK
SMEs. International Business Review. 25(4). pp.806-819.
Maduenyi, S. and et.al., 2015. Impact of organisational structure on organisational performance.
Prajogo, D.I. and et.al., 2016. Human capital, service innovation advantage, and business
performance: The moderating roles of dynamic and competitive
environments. International Journal of Operations & Production Management. 36(9).
pp.974-994.
Sánchez-Torres, J.M. and et.al., 2017. The role of future-oriented technology analysis in e-
Government: a systematic review. European Journal of Futures Research. 5(1). p.15.
Taştan, S.B. and et.al., 2017. The relationship between organisational climate and organisational
innovativeness: testing the moderating effect of individual values of power and
achievement. International Journal of Business Innovation and Research. 12(4).
pp.465-483.
Teece, D.J., 2018. Business models and dynamic capabilities. Long Range Planning. 51(1).
pp.40-49.
Waddell, D. and et.al.,, 2016. Organisational change: Development and transformation.
Cengage AU.
Online
Financial style 2016. [Online]. Available through. <http://financial-style.com/whats-the-best-
legal-structure-for-your-business/>.
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