Business and the Business Environment: A Comprehensive Analysis of Vodafone

BUSINESS AND THE BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION........................................................................................................................3
P1 DIFFERENT TYPES AND PURPOSES OF ORGANIZATIONS, PUBLIC, PRIVATE AND
VOLUNTARY SECTOR AND LEGAL STRUCTURE.........................................................................4
P2, M1 SIZE AND SCOPE OF A RANGE OF DIFFERENT TYPES OF THE ORGANIZATION..............6
M2 ADVANTAGES AND DISADVANTAGES OF THE INTERRELATIONS BETWEEN
ORGANIZATIONAL FUNCTIONS IMPACT ON THE ORGANIZATIONAL STRUCTURE....................8
P3 RELATIONSHIP BETWEEN DIFFERENT ORGANIZATIONAL FUNCTIONS AND HOW THEY ARE
LINKED TO ORGANIZATIONAL OBJECTIVES AND STRUCTURE...................................................9
P4, M3 IDENTIFICATION OF POSITIVE AND NEGATIVE IMPACT OF MACRO FACTORS ON
BUSINESS OPERATIONS OF VODAFONE BY USING PESTLE ANALYSIS.....................................11
P5, M4- USING SWOT ANALYSIS CONDUCT AN INTERNAL AND EXTERNAL ANALYSIS IN
ORDER TO IDENTIFY STRENGTHS AND WEAKNESSES AND JUSTIFY THAT HOW THEY
INFLUENCE DECISION-MAKING PROCESS...............................................................................13
P6- EXPLAIN, HOW STRENGTHS AND WEAKNESSES INTERRELATE WITH EXTERNAL MACRO
FACTORS.................................................................................................................................16
CONCLUSION.......................................................................................................................... 18
REFERENCES........................................................................................................................... 19

INTRODUCTION
Business environment refers to all the internal and external factors those possess impact to
operation of a business including employees, customers, supply and demand and business
regulation(Botha, et al 2014). Business environment reflect significantly to the business of a
company and its profitability. This report demonstrates the different dimensions of business
and its environment in order to make the deep understanding of the concept. It portrays the
various kind of organizations including their size and scope. The relationship between
different organizational functions and their connection with organizational objectives and
structure is also elaborated in this work. It further covers the positive as well as adverse
impact on the different macro factors on the business activities. SWOT analysis is also used
to determine the strengths and weakness of a company and its relationship with external
macro factors.
In this report, Vodafone is selected to investigate the different features of business and
business environment. Vodafone is a UK based telecommunication company which operates
in the region of Africa, Europe and Asia. It is one of the leading telecommunication
companies own network in over 25 countries and partner network in more than 50
additional countries. EE and O2 are also the UK based leading telecommunication
companies and this report explains the impact of the business environment on these
companies.

P1 DIFFERENT TYPES AND PURPOSES OF ORGANIZATIONS, PUBLIC,
PRIVATE AND VOLUNTARY SECTOR AND LEGAL STRUCTURE
There are different types of organizations which have different purpose and objectives. This
task demonstrates the different types of the organizations including public, private and
voluntary sector. There are different types of legal structure which is also elaborated in this
task.
Organizations may have different purposes, they may be for-profit, not-for-profit and non-
government organizations. For-profit organizations are the companies which aims to earn
profit by delivering the products or services which can meet the expectations of the
customers. Examples of for profit organizations are companies like Vodafone, O2, EE etc.
Not- for- profit organizations (NPO) is a group organized for purposes other than making
profits, Non-profit organizations are often used for trusts, advocacy, cooperatives and other
religious groups. Funding can be a major issues, as NPO has to depend on the external
sources such as donations. for The NPO and NGO (non-government organization) are often
used interchangeably but in actual they are different from each other. NGO are separate
from government and do not needs government council but depend on the government for
funding (Botha, et al 2014).
Economy is divided into three major sectors that are public sector, private sector and
voluntary sector. These sectors are different from each other in their purpose, funding
source and other sucj factors.
PUBLIC SECTOR
Public sector is an important part of the nation’s economy which is controlled by the
government. It may be controlled by local or central government. The main objective of the
public organizations is to serve the citizen of the country. The key sources of funding for this
kind of organizations are public revenue like duty, tax, penalty etc. Main example of public
organization is BBC (British Broadcasting Corporation).
PRIVATE SECTOR
It is an important section of the economy which is owned and controlled by private
individuals or companies. The main objective of the private organizations is to earn the
profit. The main sources of funding of private sector are issuing shares and debentures by
taking loans. Private sector includes different areas like information technology, finance,
education, construction, banking, etc.
VOLUNTARY SECTOR

It is also known as the third sector or civic sector. The main aim of voluntary organizations is
to serve the society and work for its welfare and betterment. There are different sources of
funding for voluntary organizations such as donations, gifts, grant funding etc. NHS is one of
the key examples of the voluntary organization in UK.
The organizations can also be divided on the basis of sole traders, partnership limited, and
cooperatives. These organizations are different from each other on the basis of the
ownership and control.
SOLE TRADER
This type of organizations is owned and control by an individual who possess all the control.
There are various advantage of the sole trader which includes easy and inexpsive
registration, direct control of decision making, all profits go directly and minimum working
capital required for start-up.
PARTNERSHIP LIMITED
It is non- incorporated business that is created between two or more people. In this kind of
legal structure the resources of one party combined with the other. Partnership may be
private limited as well as public limited. The private limited firms is a business utility that is
held by the private owners whereas as a public limited company has permission to issues
registered security to general public through IPO (initial public offering) and is traded on
stock exchange market.
COOPERATIVES
A cooperative organization refers to the association of persons, usually of limited means,
who have voluntarily joined together to meet a common economic objective. Cooperatives
are owned and operated for the benefit of their members.

P2, M1 SIZE AND SCOPE OF A RANGE OF DIFFERENT TYPES OF THE
ORGANIZATION
This task demonstrates the different types of the organization on the basis of size. It further
explains their scope of a range of the different types of the organizations.
The business organizations can classified into four different parts on the basis of micro,
small, medium and large. The objectives, number of employee, way of working, and
organizational structures of these organizations are different from each other.
MICRO ORGANIZATION
Micro organizations are the small companies or shops such as ice-cream parlour, café etc.
These companies operate with less than 10 people. The objective of these kind of the
organizations is to earn money to make the living. These kind of the organizations add value
to economy. It does not require large number of the employees or training as well as it can
be started with low financial resources.
SMALL ORGANIZATION
A small organization employs a small number of the employees and it does not requires any
specialized training. The number of the employees in this kind of organization can vary from
10 to 50 employees. The revenue generation of this kind of organization depends on the
kind of industry they are in. The objective of the small organizations is to enhance the
profitability of the company and to achieve significant growth.
MEDIUM ORGANIZATION
Medium size organizations are larger than the small organization and are smaller than the
large organizations. The number of the employees in medium size organization can reach to
250 employees. The medium size organization also aims to achieve the significant growth
and profitability.
LARGE ORGANIZATIONS
As the name indicates large organizations are larger in size as compared to medium
organization. Large organization requires large number of the employees and significant
amount of the financial resources to operate its business smoothly. The large organizations
focus on the achievement of the considerable market share and profitability.
Apart from these organizations there is one other kind of organization which reflects
significantly to the economy and that is transnational corporation. A transnational