Business and the Business Environment

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
P1.Different types and purposes of organization........................................................................3
P2. Size and scope of various types of organizations.................................................................4
P3.The organisational function or their relationship and there connection with the business
objectives and structure...............................................................................................................6
P4.The Pestle analysis of the organisations and their negative or positive effects -...................7
P5. The external or internal analysis of organisation in identifying the weaknesses or
strengths......................................................................................................................................9
P6.The weaknesses or strength and their interconnection with external macro factor -...........10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment is related to both internal and external factors that influence the
business and organization. This report will present different types of organization such as public,
private and voluntary and also focus on scope, size and legal structure of organization. It will
also present the relationship between different organizational functions and their link to
organization objective and structure. It will focus on positive and negative impact of macro
environment (PESTLE) upon different business such as Oxfam and Rolls-Royce and show their
internal and external analysis to identify strengths and weakness (SWOT). This will also present
interrelation of SWOT analysis with external macro factors (PESTLE) of company. This report
help companies like SWIRE, OXFAM & Rolls-Royce to develop opportunities and make
positive decision to meed the weakness. It will also help to explore the opportunities and
relationship between companies followed by the external environment influence and impact.
P1.Different types and purposes of organization
Public Sector: In this sector organization or company run by Government or non-profit
organization that provide services for social purpose. Purpose of this sector is to deliver public
goods and services and governmental services such as police, military, public transport, public
infrastructure, and more for betterment of the public and society This sector operates with money
raised from taxes (Farah, 2020). Taking the example of Rolls-Royce, which is one of the leading
company in UK. It focuses has been set on approach that seek to offer a good value and services
to customers. Rolls-Royce deliver positive contribution towards the society.
Legal Structure: In this sector due to legal structure company gives its shares for trading and on
stock market to the public. According to government law making, Rolls-Royce has compulsory
to present its financial status and position policy to maintain good relationship with public.
Private Sector: In this sector profit based and private company comes which run by individuals
and companies. In this sector most companies run with an objective to make profit. They are
financed by private money from shareholders or friends and by bank loans. Purpose of this sector
is to make profit. They are also important source of growth and development in economy for the
country (Ivanova, 2019). Taking example of SWIRE which is multinational retail company. It

has been search importance on generating a big range of revenue and net income. It is operated
to obtain a competitive advantage of their own.
Legal Structure: In private sector due to legal structure owner have limited shares of their
liability. SWIRE cannot increase or raise money by selling shares to investors, banks or in stock
market. SWIRE has more flexibility to operate company. They can change their business from
private to public by selling shares.
Voluntary Sector: It is the group of individuals who involves for attaining a specific purpose. It
is carry out social activities undertaken some non-profit and non-governmental organization.
Purpose of this sector is providing benefits and services to the society at large scale without any
return profit. They also conduct social wealth and help improvement event for society. Taking
the example of OXFAM, It is famous in UK for their social services. They conduct events and
campaigns for society betterment and to spread awareness for child education and health
problems.
Legal Structure: In voluntary sector few legal requirements needed to set up the business.
OXFAM is not a legal organization (Johannessen, 2020). OXFAM has complete control over the
business there no legal structure needed. It has close contact with customers. They don't need to
share profits. By holding an effective leadership OXFAM support its internal factors.
P2. Size and scope of various types of organizations
The comparison of small, medium and large organizations is done in the following table.
Small organizations Medium organizations Large organizations
Small enterprises have
minimal capital and employee
rate of 1-99. The equity of
these organizations is held by
the founder itself because its
legal structure is of sole
proprietorship or limited
partnership (Akter, Ali and
Chang, 2019). These
corporations can probably
Medium enterprises gain finite
revenue and its employee rates
differ from 100-499. Its equity
is almost held privately as the
enterprise legal structure is
multiple partnership or private
limited companies. In these
corporations, decision making
and strategic planning is done
by multiple members
Large enterprises earn
increased capitals and its
amount of employee is more
than 500. The equity in these
companies is mostly held by
public investors and the legal
structure in these
organizations has
stakeholders, and these have
to fulfil a large amount of