Business and Business Environment

BUSINESS AND BUSINESS
ENVIRONMENT (UNIT-1)
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
. P1 Purposes and forms of companies and legal structures...................................................3
. P2 Complexities of different types of business structures and their cultures.......................6
LO 2.................................................................................................................................................7
P3 Interrelationship between different businesses functions and their interconnection with
objectives, services and products of venture..........................................................................7
LO 3.................................................................................................................................................9
P4 Negative and positive impacts of macro environment on business operations.................9
LO 4...............................................................................................................................................11
P 5. Carrying internal as well as external analysis of key organizations.............................11
P 6. Critically evaluating how strengths and weakness is associated with external macro
factors...................................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Business environment comprises external and internal factors that affect existing business
activities and practices in negative or positive manner. It indicates aggregate sum of all
individuals and other forces that exist outside and inside of sectors and affect productivity of
companies. The current study will be based on three different sectors such as private, public and
voluntary. It will explain complexities of different forms of business structures and
interrelationship of varied organizational functions. Furthermore, this assignment will justify
negative and positive impact of factors upon decision making and business objectives of
companies and will also explore internal analysis of firms. This report will define connections of
strengths, weakness with internal analysis in context of organizations.
LO 1
P1 Purposes and forms of companies and legal structures
Types of business structures-
In the business world, there are different forms of companies accessible which can be
distinguished on basis of their size, scope, purpose and legal structure. There are some following
examples of different types of firms;
Public sectors-
This sector includes governmental services and public goods such as public transit, along
with health care. Companies working under this industry have plays vital role in growth of
economy and GDP (Athman, 2020). They keep a check on guidelines of restrictive and
Monopolistic trade practices. These organizations carry those activities and practices that cannot
be finance by private and those related to social or economic welfare. Public sector companies
can be considered as publicly listed organizations whose ownership is effectively organized via
shares of stock, intended to be freely traded among individual within stock exchange. These
firms were also formulate effective and wider working vision and formation of better working
parameters with excellent innovation among manufacturing of products or services.
SAINSBURY is considered as public sector Company, which falls under list of leading retailers
in UK (THE HISTORY OF SAINSBURY’S - TRYING SOMETHING NEW FOR 147 YEARS,
2020). SAINSBURY Plc, as name suggest is a public limited firm, therefore firm’s share are
bought by common people who are especially benefitted by its business performance and are
known as shareholders of organization.
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Purpose-
The purpose of SAINSBURY plc is to be the best and most trusted retailers in the whole
world. Management effort to help its consumers to save their money and live better.
Private sectors-
Companies operating their business under private sector contributed about three fourth of
nation’s national income. These firms also play important and helpful role to increase gross
domestic saving and gross domestic capital formations within economy (Osborne, 2018). Private
organizations are forms of businesses where shares are open for further investments to limited
shareholders who have all legal authority to take part in decisions making procedures within
organizations. Private firms do not trade their venture shards openly which make its market
position limited, they highly focused on innovation development which allow them to gain
attention of buyers and that can increase its profitability and productivity. John Lewis partnership
is one of the private companies within United Kingdom that operates its business across nation
and focuses for generating profit margin, sales and productivity than its competitors. They
concentrate on providing innovative goods and services to target customers.
Purpose-
The purpose of private firms like John Lewis partnership is to increase sales rather than
other brands, operating in same sectors since for so long. The goal of these companies is making
money and employs more applicants at workplaces than public sectors organizations who are
highly knowledgeable and talented.
Voluntary sectors-
It refers to companies whose primary objective or purpose is to create social affect more
than profit (Lee, 2020). Voluntary firms are another type of organizations who focuses on
development and improvement of society and better formation of its values by serving services
fundamentally into improving living standards of people especially women. Firms working and
managing their activities in voluntary sector are mainly focusing for developing new creative
things for people at valuable cost effective with least concentrate on increasing profits that make
them different from above types of companies. Due to lack of shares formation operating
fundamentals, Voluntary Company’s legal identity gets limited at some functional parameters.
British Red Cross is volunteer led movement that connects those who have kindness to share,
with individual who need it most. As voluntary company they aid local and other people across
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