Analysis of Business and the Business Environment for HNC Students

This report provides a comprehensive analysis of the business environment, examining various organizational structures and their functions. It explores different types of organizations, including private, public, voluntary, profit, not-for-profit, and non-profit entities, highlighting their objectives and characteristics. The report differentiates between micro, small, and medium-sized businesses, considering their purposes, objectives, supply chains, and legal structures. It also delves into the size and scope of organizations, using examples like Intercontinental Hotels and Resorts, BBC, and NCVO to illustrate their market share, profit share, and growth. Furthermore, the report covers transnational, international, and global organizations, along with the differences between franchising, joint ventures, and licensing. It also addresses various functions within an organization, such as marketing, HR, sales, and R&D, and explores organizational structures like bureaucratic, post-bureaucratic, matrix, and functional levels. The conclusion emphasizes the importance of internal and external factors, coordination, and cooperation in achieving organizational objectives. The report is well-structured and referenced, providing valuable insights into the dynamic nature of the business environment.

BUSINESS AND THE
BUSINESS ENVIRONMENT

Table of Content
 Introduction
 Different types of organizations
 Different between Profit, Not-profit and Non-Profit Organizations
 Difference between Micro, small and medium based organizations
 Legal structure
 Size and scope of Organization
 Growth and development of Transnational, international and global organizations

Table of Content
 Difference between Franchising, Joint Venture and Licensing
 Various functions within an organizations
 Organizational structure
 Conclusion
 References

Introduction
Business environment is considered as the mixture of both macro and micro factors that impact the
working conditions and operation of business activities. In relation with this organizations need to consider
both external and internal factors which impact the business activities while taking their decisions. Along
with this internal factors are under control meanwhile external factors are beyond the control. Business
environment is dynamic uncertain Complex and relative which impact the performance profitability and
growth of company .

Different types of organizations
 Private Company: A private company is the artificial structure on which it owns by small number of
shareholders, for example: The Intercontinental hotels and resorts is the British branded hotel located in
England and has many hotels across the world and also established in 1946.
 Public Company: A public company is ones which is owns and traded through public based company
which ownership is organised through shares of stocks. For example: BBC Company which stands for
British Broadcasting which contains the international news coverage as well as it is one of the most
prefer by British people as entertainment.
 Voluntary Organisation: It is an organisation on which a group of individuals who enters into an
agreements, as perform in voluntary form to accomplish a purpose. For example NCVO is National
Council for voluntary organisation in London where it is form of NGO body that serves the social
service work for betterment aspects.

Different between Profit, Not-profit and Non-Profit Organizations
Basis Profit Organisations Not-for-Profit Organisations Non-Profit Organisations
Meaning A profit organisation is comprises
about the making money oriented in
terms of dealing with products and
services through consumers for
profit motive.
This organisation is also refers as
non business entity, not for profit
organisation. It is an organisation
dedicated to analysing a shared view
point.
Non profit organisation is also one of
the socialise work delegation in
which it comprises the working
features which is not entitled as
money making but to provide some
activity which brings social work not
for profit motive.
Objectives The objective of profit organisation
is just to deal with product to people
earning money and there is not
involve any social cause.
The objective of Not for profit
organisation is too not earning
money in spite of that by consuming
and promoting the social welfare
towards the society.
The objective for Non profit
organisation is the having a social
work or which has not involved the
money making or earring factor. To
contribute something for the society.

Difference between Micro, small and medium based
organizations
Basis Micro Organisations Small Organisations Medium based Organisations
Purpose A micro business is generally derives
the small kind of business structure,
the purpose of micro business is to
deal with domestic countries
consumers.
A small business is too owned by
independently where it purposes to
require the less capitalism as well as
workforce and less number of
machinery.
The medium based business is too
owned by moderate business persons
whose are basically deals with
economic as well as bigger clients to
entering and promoting the business.
Objectives The motive of micro business is to
fulfilment the basic requirement of
business terms resources to
affordable consumers
The objective of small business as
they have short span of capital to
invest so they trade the business with
less amount of workforce and
resources for moderate profit
earning.
The only objective of this medium
business is too organised and
promotes the products in national as
well as international. As they are
very much profit oriented.

Continue…
Basis Micro Organisations Small Organisations Medium based Organisations
Supply of goods and services The supply chain of goods and
services is to domestic
consumers which are basic
reflecting about the products.
The supply of goods is in united
kingdom based will be trading
of authentic but economic goods
quantity and quality.
The supply of good is to deals in
internal and external countries to
making the awareness among
between people of around the
world.

Legal Structure
 Private Company: The legal structure of private company is it refers the type of privately which held
a small business entity. A company becomes an independent legal structure when it undergoes it
incorporates. As it comprises through limited and individual body of business framework where the
compliances are work according to their norms and private company’s act. Therefore, in relation with
this company regulates in private limited structure.
 Public company: As the formation of the legal structure of this public company is it refers the finances
and separated from personal oriented financial body where it owns through the public share of stocks
and it regulates the governmental regulation acts as per the rules and regulation form a public sector
company. In context of this, company regulates in partnerships legal structure.

Size and scope of Organisations
Basis Intercontinental hotels and resorts BBC NCVO
Objectives and goals They have priorities to provide the
top quality services towards the
consumers.
Having a big scope of entertainment
as well as other network factor to
making sure for providing the best
and latest trends information as
much forecast to the world
As it form of NGO and it regulates
through government and objectives
are to promote the social causes and
provides the betterment towards the
society
Market share The market share of Intercontinental
hotels and resorts is that they are
spread globally as in united kingdom
around 52.87%.
The market share of BBC company
is 14 channels worldwide and 23.2%
and 10.2% share of market as in
public reviews.
The market share of NCVO is
having 50 above branches worldwide
and it having less market share.

Continue…
Basis Intercontinental hotels and resorts BBC NCVO
Profit share As per the records of 2019
Intercontinental hotels and resorts
has share 13.3 around billion British
Pounds.
As through the worldwide records
the profit rate was 11.2% and
turnover is 104 million euro.
The profit share is organised and
mapped through the trusties as well
they basically focuses towards the
welfare for society.
Growth and sustainability The growth rate of currently basis is
planned according to 3.2% which is
compare with the 4% on present year
of 2020 as they are looking forward
to introduce 200 above aircrafts.
As per the news and records of the
BBC company it emphasis about to
facing loss in net income 69 million
pounds as the revenue after
generates is 4,889 billion pounds.
The NVCO having the long term
growth and stability in terms of
promoting of social welfare.

Growth and development of Transnational,
international and global organisation
 Transnational: A Transnational organisation is basically in face of terms as per the allocation of
resources, as the goal of this companies are to comply the strategic elements of globally and multi
domestic strategic such as the Intercontinental hotels and resorts which is entitled through worldwide
as for their airlines.
 International: An international organisation institution portrait the structure of an individual
organisation which is establish by treaty and governed by international aspect of compliances factor
such as BBC Company is internationally worldwide company who manages the news awareness.
 Global: A global organization is comprises about the trading and promoting of business is having the
awareness at around the world such as NCVO is a Ngo where it globally helps to promote the social
welfare.

Difference between Franchising, Joint venture
and Licensing
Basis Franchising Joint Venture Licensing
Meaning The Franchising is a type of
arrangement where it promotes
the grants and licenses.
It is commercial enterprise
undertaken by joining of two or
more parties of business for
collaboration.
It refers to facilitate the original
ownership for granting the
official license.
Purpose and objectives It provides the outlet of goods
and services by properly
structured and well run it
provides the benefits (Foss and
Saebi, 2018).
The purpose and objectives is to
fulfil the organisation demand
and gaining of more profits and
promotion.
The purpose of the licensing is
to promote the business or
product by ownership identity
which cannot take or steal
without permit.

Various functions within an organisation
 Marketing and Production department: Marketing department is the unit that conduct market research for
company in order to collect various information such preferences, requirements and demands of customers. In
order to enhance the profitability and productivity of company marketing department plays a significant role.
 HR and Finance department: In this context the HR department put emphasis on the human capital that is
considered as the important asset for the company. For this HR department recruit employees by determining the
requirement of company for the specific job post within the various departments of organisation.
 Sales and R&D department: These departments are also interconnected with each other as the research and
development department conduct research for the sales department by finding various methods of sales that are
helpful for the sales department to increase sales and productivity of company.

Organisational Structure
 Bureaucratic: This organisational structure has a pyramidal command structure as it is very organised
and formal high degree organisational structure. In context of this organisational chart carry for each and
every department in order to make their decisions in the more organised and arranged manner.
 Post-bureaucratic: This organisational structure is more flexible in order to use and implement within
the organisation. This structure has two sensors that are one generic and other one is more specific.
 Matrix and functional levels: Under this organisational structure the reporting relationships are
developed as a grid and Matrix instead of traditional hierarchy. The structure is followed by BBC which
is the Global organisation and works in television and broadcasting and also manager several shows at a
time that are present in various countries.

Conclusion
By considering the preceding information it is analysed that environment is the sum up of
both internal and external factors which impact the overall performance of company. In
relation with this purpose of structure is important for the company as it depicts the various
functional activities of company which is interlinked with the organisational structure. In
this context each and every department of company must have proper coordination and
cooperation that helps in achieving the overall objectives by considering the vision mission
and various goals of the organisational structure and Company.

References
 Alotaibi, Y., 2016. Business process modelling challenges and solutions: a literature
review. Journal of Intelligent Manufacturing. 27(4). pp.701-723.
 Calabrese, M and et. al., 2018. From mechanical to cognitive view: The changes of
decision making in business environment. In Social Dynamics in a Systems
Perspective (pp. 223-240). Springer, Cham.
 Deasy, S and et. al., 2016. Controlling use of a business environment on a mobile device.
U.S. Patent 9,247,042.

Thank You