Business and Business Environment

Business and business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Task1................................................................................................................................................1
P1: Different types and purpose of the organization...................................................................1
P2: Explain the size and scope of different type of organization................................................3
M1: Analyse how the structure, size and scope of different organization linked to the
company's business objectives:...................................................................................................4
Task2................................................................................................................................................4
P3: The inter-relationship of various functions within the Organizations..................................4
M2: Analyse the advantages and disadvantages of inter-relationships:......................................5
D1 Provide critical analysis complexities of different types of business structure and
interrelations of different organization functions........................................................................5
Task3................................................................................................................................................6
P4 Positive and negative impact of macro environment upon business operations....................6
M3: Apply appropriately the Pestle analysis for Justifying it's influence;.................................7
P5: Internal as well as external analysis and it's inter-relationship with external factors:.........8
M4: Apply appropriately the Swot analysis for Justifying it's influence;...................................9
P6 How strength and weaknesses are interrelate with macro factors.......................................10
D2 critically evaluate the impact that both macro and micro factors have on business
objectives and decision making................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business Environment is the total sum of all the internal as well as external factors that
mainly includes employees, customer's requirements, supply and demand, management,
government activities, technological trends, social trends, economic changes etc. It is important
for the all the Organisation throughout the world to focus on all these factors as this has a direct
or indirect impact on their business performance (Cherunilam, 2016).
Hindustan Unilever is one of the leading companies in U.K and throughout the world.
They are primarily engaged in offering services that fulfils their nutritional requirements,
hygiene related to home and also includes product with respect to personal care. This project
covers the different aspects of business environment. This includes different type, size and scope
of their Organizations, inter-relation of their different functions, influences of macro-
environment and also the interrelation between company’s specific internal environment with
that of it's external factor. This will be beneficial for the company in strengthening it's internal
environment and able to enhance and maintain their brand image among their immediate
competitors.
Task1
P1: Different types and purpose of the organization
There are different types of organisation throughout the world, that follows different
structure mainly depending on their objective and purpose of organization for which they have
established. Although, it is not necessary for all organization to operate their business with the
main aim of profit maximization (Likoko and Kini, 2017). Still, the primary objective of all of
them in to earn profit that helps one to enhance and maintain their position in these changing
times when there is higher level of competition. In is important for Unilever to have a better
understanding of the different types of Organizations. For doing this, it is must to understand the
different purpose of the organizations. It can be detailed below:
Profit Organizations: They are those organizations that operate with the main objective of
earning as well as enhancing their profitability. These organizations mainly exist in private sector
that is explained below. The profit earned by them is re-invested for their further as well as long
term growth. The main purpose of this type of organisation is to generate profits by satisfying
customers.
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Non-Profit Organization: These Organization are set up for non-financial purpose. They don't
operate for earning profit rather they focus on the welfare of their community. It is been
explained below:
It is must for each of the Organization to decide their legal structure before starting their business
operations. As this further be useful to address a series of issues that includes how to raise
finances, criteria for distribution of profits (Stott, Stone and Fae, 2016). It can explained in detail,
below for it's better understanding.
Private Sector: This type of Organization is those that are owned by individuals or a group of
individuals. The profits earned by these sectors are distributed among owners, shareholders and
investors. They are mainly financed by private money that is provided by their shareholder and
also by bank loans. For example- Tesco, Hindustan Unilever etc.
Public Sector: This type of Organization are mainly owned by the government. They provide
their products and services that will benefit their Community (Prajogo, 2016). These type of
Organization are operated by the government by utilizing the money that has been earned as a
result of tax collection. For example- BBC etc.
Voluntarily sector: This sectors are those that are owned voluntarily by the trustees. There main
aim is not be earn profit but the look for the welfare of their community. They mainly operate as
a result of money collection that have arrived as a result of donation and gifts. The profit if any
arises in a particular period are re-invested to enhance the welfare of their community. This type
of organization are primarily run as a social enterprise. Example- The best example for this
business is NHS and many more.
It is must for each of the Organization to decide their legal structure before starting their
business operations. As this further be useful to address a series of issues that includes how to
raise finances, criteria for distribution of profits (Hamad, Elbeltagi and El‐Gohary, 2018). It can
explained in detail, below for it's better understanding.
 Sole proprietorship: This is one of the legal setup that has been newly introduced by
Company's act 2013. This type of business are run and operated by those where the
business is owned and operated by a single person. In these type of businesses, the owner
isn't separated for his business and is personally liable taking all aspects of business and
includes finances. Owner has unlimited liability as he is the sole owner. For example-
hairdresser, carpenter, plumber etc.
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