Business and the Business Environment

BUSINESS AND THE
BUSINESS ENVIRONMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Types and purpose of organization.........................................................................................1
P2 Scope and Size of the Company.............................................................................................2
P3 Relationship of Organisation Structure..................................................................................3
LO3..................................................................................................................................................4
P4 Positive and negative impacts of macro environment on business operations.......................4
LO4..................................................................................................................................................6
P5 SWOT Analysis......................................................................................................................6
P6 Strengths and weaknesses interrelate with external macro factors.........................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is the sum of all internal and external factors of a business like
employees, customer needs and demands, supply and demand, management, clients, supplies,
owners, social trends, etc. It is very important for the organization to understand business
environment so that further decisions can be made accordingly. There are a lot of factors which
can make organization get a competitive advantage and a lot of factors which can influence
working of an organization which has to be improved by organization.
Unilever has a multinational company which is having its headquarters in London,
United Kingdom. There are more than 155,000 employees working in the organization which is
going to make organization function more productively and effectively (Unilever, 2020).
The report is covering the internal and external environment of company and that will
help organization have a better functioning for them and make company have a better name for
future. There are a lot of changes which are taking place in internal and external factors of
company so that there is a better functioning. This would be covered in further report.
LO 1
P1 Types and purpose of organization
Private Company
Private companies are those companies in market which does not allow the public to buy
their shares and the maximum board members they have been not more than 200. The rules and
regulations which they have been different from other types of organizations and anyone can
start their own private company with how much ever capital they have in hand. Unilever is a
company in United Kingdom which is a private company (Batocchio, Ghezzi and Rangone,
2016). The company is dealing in food, refreshments, home care, beauty and personal care, etc.
Any decisions taken in the organization have to be agreed upon all the parties in the organization
only then the decision can be implemented. Legally there is a limit on the shareholders in the
organization.
Purpose
 With a limited income of resources Unilever focuses on making low cost products and
quality so that there the customer’s needs and be met and the company can make profit. Focus of the company is to increase their sales so that they can increase their profit.
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Public Company
The shares of the company are distributed with all the shareholders of the company.
There are a lot of shareholders in the company and there are more than 200 members in the
company. Anyone can become a shareholder and the rules and regulations for the company are
different from other types of companies in market. NHS is a public company which is a United
Kingdom based company. This company provides health care to customers at a low cost so that
there is a high satisfaction level of customers. Legally there is no restrictions on the number of
shareholders in the organization which can make the organization expand even more and get
more customers. The employees also have to be given their rights so that the organization can
function effectively.
Purpose
 There are free health care services which are being provided to the customers so that
there is high satisfaction. Purpose of the company is to provide the customers with better health facilities in
country.
Voluntary company
These companies are in the market so that there is welfare of the society and anyone can
donate investment for the functioning of this company. Their work in to inform the people and
make them aware of the lifestyle they can have with the help of these companies which are non
governmental and non profitable. Oxfam is a voluntary company in United Kingdom so that the
condition of the people can get better. This charity is spread worldwide and there are 290
different charities under this company (Kluza and Nalepa, 2017). Trust plays a very important
legal factor in the organizations which are voluntary and can help the organization achieve their
objectives faster. The objectives have to be legally approved and so does the voluntary
organization in the country which has no personal benefit but social benefits.
Purpose
 Improve poverty level in the country and provide education to poor so that they know
their basic rights.
 The company does not work to earn profit but have a better society in the country.
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