Business and the Business Environment

Business and the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1 (Covering LO1 and LO2)..................................................................................................1
P1 Different types and purposes of organisations: public, private and voluntary sectors and
legal structures............................................................................................................................1
P2 Size and scope of a range of different types of organisations................................................3
P3 Relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................4
PART 2 (Covering LO3 and LO4)..................................................................................................5
P4. Positive and negative impacts macro environment has upon business operations...............5
P5. Internal and external analysis of organisations to identify strengths and weaknesses..........7
P6. Strengths and weaknesses interrelated with macro environmental factors.........................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment can be deciphered as the accumulation of external as well as
internal factors which together place influence upon the manner in which an organisation carries
out its operations (Luiz, Ganson and Wennmann, 2019). It is important for a corporation to
consistently take into account the various components of business environment with a view to
attain competitive advantage at market place. The present project is based upon TESCO, a
renowned retailer enjoying market leadership within the confines of United Kingdom. The other
2 organisation that are discussed within this assignment are BBC and Oxfam. The following
project throws light on the 3 types of organisations along with structural and legal information
about them. Apart from this, departmental interrelations are discussed. Further, critical macro
and micro environmental analysis are covered.
PART 1 (Covering LO1 and LO2)
P1 Different types and purposes of organisations: public, private and voluntary sectors and legal
structures
There are mainly 3 types of organisations which operate within the confines of a company.
These are, namely, public, private and voluntary. In this relation, their description, purpose and
legal structure are explained as follows:-
Public Organisations
These are the organisations which operate under the jurisdiction of governments. These
work for the well being and empowerment of society. An excellent example of public
organisation is BBC. It is a public organisation which is conducting operations in broadcasting
industry.
Legal Structure: The legal structure of public organisation varies in accordance with the
government under whose jurisdiction it operates. The legal structure is explained below:-
(A) Local organisation: Herein, the enterprises work under the jurisdiction of local
government (Luiz, Ganson and Wennmann, 2019).
(B) State organisation: Herein, the entities work within the jurisdiction of state
government.
(C) Central organisation: Hereby, the enterprises conduct their operations within the
jurisdiction of central government.
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Purpose: Its purpose is to operate within the favour of society by offering high quality
broadcast offering.
Objectives: The objective of this enterprise is to present true, fair and appropriate
information in front of people without being biased or subject to any prejudice.
Private Organisations
Such corporations are owned and administered by individual, group or financial
institutions. Their sole purpose is to earn huge amount of profits in order to ensure long term
survival of firm amidst hyper competitive market place (Popescu, 2019). A remarkable example
of private enterprise is the renowned British retailer named TESCO.
Legal Structure: Private organisations run in a number of forms, varying on the basis of
their internal constitution of management. Thus, the different forms of private corporations are
briefed underneath:-
(a) Sole Proprietorship: Such corporation have a single owner who assumes all the risks
and enjoys all the gains. Hereby, the law does not make any distinction in entity and sole
proprietor (owner).
(b) PLC: This entity is acknowledged to have limited liability and publically offers
shares.
(c) Corporation: Such entities do not offer shares within people and have the only
motive of earning maximum profits for surviving till a long time in future.
(d) Franchise: Such entities witness the sale of rights by franchisor to party called
franchisee such that they can conduct business operations under the brand name of company.=.
Purpose: The purpose of TESCO is to render high quality offerings to public for the
entailment of maximum satisfaction from them.
Objective: The primary objective of TESCO is to develop a brand which is capable of
capitalising upon word of mouth publicity (Hamilton and Webster, 2018).
Voluntary Organisations
Such corporations come in to force as a consequence of accumulation of certain persons
for attainment of common objective. A renowned example of voluntary organisation is Oxfam
that offers welfare services for empowerment of society as a whole.
Legal Structure: Legal structure of these corporations varies in accordance with their
nature and purpose of activities. This is explained as follows:-
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