Differences between companies for non-government, profit and non-profit firms

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION.......................................................................................................................................3
ACTIVITY 1...............................................................................................................................................3
Differences between companies for non-government, profit and non -profit firms.................................3
Differences between medium, small and micro sized enterprises............................................................4
Several types of legal structure associated with different forms of companies........................................5
Scope, size and legal structures of different organizations link to business services, goods and
objectives.................................................................................................................................................6
Interrelationships of varied organizational functions and their interconnection to objective and structure
of firms....................................................................................................................................................6
ACTIVITY 2...............................................................................................................................................7
PESTLE framework to identify negative & positive impacts upon Primark business operations............7
Porter’s five force model for micro environmental analysis....................................................................9
Use appropriate frameworks to determine organization’s internal weaknesses and strengths................10
SWOT analysis of company..................................................................................................................12
TOWS matrix to justify strength and weakness interrelation with micro and macro factors.................13
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Business environment comprised to micro and macro factors that impact its business
operations and practices. The current report is divided into two activities; one will comprised of
different companies and second is based on one firm that is Primark. This study explains
differences between firms and defines differences between micro, medium and small sized
enterprises. Range of legal structure linked with several forms of business will be analyzed in
this report. Furthermore, this study justified how legal structure, scope and sized of companies
link to business services, items and objectives. It also defines critical analysis of interrelationship
of varied operational functions that might be link to structure and objectives of firms. Moreover,
this report clarified macro environmental analysis by using PESTLE model, micro analysis by
utilizing Porter’s five forces model and also justify VRIO and value chain analysis in context of
Primark. Finally, this study highlights strength and weakness of company with the help of
SWOT analysis and TOWS matrix.
ACTIVITY 1
Differences between companies for non-government, profit and non -profit firms
Private sector companies-
This sector is important element of country’s economic system that is run by several
successful organizations, more than government (Boutillier and Uzunidis, 2016). Private industry
is wide in free venture economies such as UK, in which authority imposes relatively few
restrictions on companies. Primark is the best example of private sector organization that is able
to operate their business operations and functions in effective manner within fashion industry.
The purpose of this company is to increase their profit margin rather than its competitors
available in same sector. Private sector organizations are set up by entrepreneurs and individual
who seeking to make profit and increase sales from their business practices as well as activities.
Public sector firms-
Organizations under this sector are owned & managed by government and exist to cater
their services or products for their consumers (Warnakulasuriya and Jayarathne, 2018). Through

procedures of outsourcing, public sector companies will engage private companies in order to
deliver their services and products to their citizens. ESPO is public sector organization, is able to
provide the best quality service or items to wide number of consumers. The purpose of firms
working and operating under this sector is to cater the best things to local people in order to
satisfy their needs in effective manner. Firms under this sector fund their business activities
through government expenditures financed by authority borrowing.
Voluntary sector companies-
It is a group of individuals who voluntarily enter into a contract to form a company to
accomplish a purpose. Many voluntary firms are working or performing in this sector for socio
economic development and betterment of local people and for dissemination & promotion for
culture (Akbaş and Canikli, 2019). These types of companies fund their activities with the help
of organizing charity events where a lot of people are able to donate money for well fare of
people. British Red Cross is one of the suitable examples of voluntary sector firm. The aim or
purpose of this company is to aid people in crisis and respond in effective manner to disaster as
well as emergencies in United Kingdom.
Differences based on size and scope of different kinds of firms-
As mentioned above, British Red Cross is voluntary sector company their size and scope
of business is different from other firms such as public and private. This firm is able to operate
their business activities and operations across the nation in order to improve living standards of
local or residential people. In additional with it, Primark scope is limited as it was a private
sector company. On the other side, scope of public firms is vast, entrepreneur of these companies
can increase profit from local public.
Differences between medium, small and micro sized enterprises
Medium enterprise-
Medium sized companies are defined as a company that not exceed or grow at least 3 out
of 4 of following criterion in current era and preceding balance sheet sum 17 million. They
prefer to mange as sole proprietorship, they provide greater level of managerial control for firm