Business and The Business Environment

Business and The Business
Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures......................................................................................................................3
P2 Explain the size and scope of a range of different types of organisations.............................5
TASK 2............................................................................................................................................7
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure........................................................................................7
TASK 3............................................................................................................................................8
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................8
TASK 4..........................................................................................................................................10
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses..........................................................................................................10
P6 Explain how strengths and weaknesses interrelate with external macro factors..................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Business environment is mainly considered as a sum total of whole external as well as
internal aspect which directly and indirectly influences decision making of business. Both have
various affects upon business practices as internal factors affect are controllable while external
are beyond control (Avramenko, 2012). So, for it entity has to determine irrespective nature of
business environment as it helps them to find several opportunities and threats as well. For this
report, the undertaken organisation is Marks & Spencer which is leading British retailer having
headquarters is in London, England. The topics covered in this report are size, scope, intent and
legal structure of private, public and voluntary firm. Moreover, the interrelationship among
various departments and effects of external as well as internal factors upon business operations.
Apart from this, how macro factors may be interrelated with organisational strengths and
weaknesses are also discussed in this report.
TASK 1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.
As it has been determine that organisational success is based upon experiences and skills
through target market. There are various kind of organisation that are categorised based on its
intent, objectives and nature. Mainly there are 3 types of organisation which are discussed below
in detail:
Private sector organisation
This plays a crucial role within the system of country’s economy. It is mainly operated
through firms and people with clear objectives of developing expected profitability (Ballard and
et.al., 2012). So, the best example of it is Marks & Spencer which is British retailer deals in food
products, clothing and others. It s developed in year 1884 by Michael Marks and Thomas
Spencer.
Different type of private sector organisation
 Joint venture: This is considered as business agreement among two or more partners
which agree for pooling its resources for particular intent.
 Sole Proprietorship: It is considered as the one of the simple business type where person
singular person may perform a business that does not have any legal entity. Herein, an
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individual who own business individually is accountable for whole of their debts. Such as
Ma Barker.
 Partnership: It is a formal kind of business type among two or more person who agreed
to handle as well as perform an enterprise for sharing their profitability mutually.
Features: Its main feature is their management that is by single person or two without any
government involvement.
Goal: Its main goal is to develop a inspirational quality accessible firm for another one. This
incorporates quality based goods or service for clients.
Purpose: It main purpose is to gain profitability as well as become a renowned firm into
competitive market (Berg and Kilambi, 2014). Also, its intent is to provide standard quality
products to their potential consumers for gaining higher profitability.
Objectives: Its objective is to set a benchmark for another one based on firm’s quality
products.
Legal feature: It comply public limited company legal structure as well as is listed on the
London stock exchange.
Public sector organisation
This is that firm which is governed through government for facilitating product or
services for the advantage of communities (Bharadwaj and et. al., 2013). Such as NHS that
facilitates health care services to whole people based upon its health care requirements instead of
determining ability for paying for it.
Different type of Public sector organisation
 Public or statutory corporation: This kind of business is undertaken into existence
through special act of Parliament. Its main intent is to assure people welfare.
 Departmental undertaking: it is considered as one of the oldest type of business that is
organised, financed and controlled through another government.
Features: Its feature is to perform under direct control of government as well as few of them
are even developed under Statutes and Companies act. It is semiautonomous in nature.
Goal: It goals is to stand for developing health of people through facilitating the quality
services as well as experiences.
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