Business and the Business Environment

This document discusses the different types and purposes of organizations in the public, private, and voluntary sectors. It also explores the scope and size of organizations and critically analyzes the interrelationship between different organizational functions. The document provides insights into the positive and negative impacts of the macro environment and the internal and external analysis of organizations. It includes case studies of Cyclacel, NHS, and Cancer Research in the UK.

Business and the
business
environment

Table of Contents
Introduction .....................................................................................................................................1
Task 1 ..............................................................................................................................................1
Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.................................................................................................................1
Explain the scope and size of organisation.............................................................................3
TASK 2............................................................................................................................................6
Critically analysed interrelationship between different organisation functions.....................6
Task 3 ..............................................................................................................................................9
Positive and negative impacts of the macro environment......................................................9
Task 4 ............................................................................................................................................10
Internal and external analysis of organization......................................................................10
Interrelation of strength as well as weakness with the help of external macro element......11
CONCLUSION..............................................................................................................................13
REFERNCES.................................................................................................................................15

Introduction
The definition of business and the business environment refers to the various internal and
external factors that are significantly impacted the organization in terms of demand, supply,
different buying behavior and many others. Also, some sort of activities including rate of
employment, government policies, rate of exchange and many others. It can be suggested that
business environment includes identifying of the resources, opportunities of the business and a
significant growth that helps in improving of the performance of the organization or entity more
effectively (Habib and Hasan, 2020). In the following discussion, one organization from private,
public and voluntary sector has been selected as evaluating the functions. Cyclacel is one of the
private industry of specialize in the pharmaceutical sector and one the fastest growing company
of Scotland. NHS or the National Health Service is including in the public sector organization
and Cancer Research in UK in order to specifically for the voluntary sector. Also, SWOT and
PESTEL analysis is also taken into the consideration for the analysis.
Task 1
Explain different types and purposes of organisations; public, private and voluntary sectors and
legal structures.
Public organization: Government controlled and owned the organisation comes under public
organisation. They are efficiently run by the government or by various government agencies.
Public organisation includes some tremendous and effective services to enhance the overall
brand image. Nowadays, NHS or National Health Services is a major organisation of the
pharmaceutical sector that was established in 1948.
1) Purpose: It can be said that a free cost is one of the important and also a major factor which
needs to be addressed in terms of National Health Services. Also, it can be said that the major
component for the consumers is nothing but the purpose of living.
2) Legal structure: It defines as the decision taken by central government and state government.
Public limited organisation is incorporate under the Companies Act 2013. It includes minimum
numbers of shareholder required is seven as well as at least 3 directors. It includes public
organisation are free in order to easily transfer the shares as well as shareholders are effectively
participated in business activity and management. It involves public organisation in UK law in
order to minimum 50 pounds are required due to started business.
1

Central: It takes into account a number of business operations that are directed by the central
government and maintains proper control over them. Central government-owned businesses can
obtain permission and be included in every decision-making process.
State: As there are numerous services that are managed by State Government, they share their
powers and authority with the national government.
Local: This government collects effective fonts in terms of municipal charges, which are often
referred to as Council tax, and local governments play a critical role in protecting and analysing
needs of people.
3) Stakeholders: Some major elements which are quite important for the organisation. The major
stakeholders included in it are It includes some major elements that are quiet important for the
organisation. Some financial investment included into it are the trustee’s local authority and
patients.
Private organisation: It refers to a organisation which consists of partners, individuals and
agency. If talking about the today's scenario, the private organisation basically made for large
number of profits rather than believing on the non-profit organisation. The current scenario is
dealing with various medicines in the business operation.
1) Purpose: The best quality of services and the cost of products is the main purpose of private
organisation. Cyclacel is the leading business organisation and its major aim of purpose is to
provide the best quality of products and services to their consumers at a very reasonable prices so
that even poor people will get the best out of it.
2) Legal structure: Private limited organisation is corporate legal entity in order to under
registered under companies Act, 2013. it includes minimum two shareholders as well as two
directors of company. It is essential for private organisation in order to registration process as
well as all the legal and document detail are required. It considered as maximum shareholders up
to 200 director’s maximum numbers of 15 directors. It considered as within two to six weeks are
required in order to incorporation private organisation. Cyclacel has generally the top priorities
and board of directors. The organisation who has top legal authorities in the organisation is
genuinely made out the best in taking all the major decisions according to the form of top
authorities. Also, the decisions that are taken by top and the best authorities affected greatly to
the different functional department.
2

Sole proprietorship-: This is a type of corporation in which a single individual owns the
company and manages all of its operations. Since a single individual is responsible for all
business costs, there is no need for any sort of legal arrangement.
Partnership-: It entails the management of a company by two or more partnerships and the
distribution of profits and losses among the partners. It is a legal arrangement between both of
the partners known as a partnership deed.
Corporation: This organisation is being built as a separate business entity that will be run by
stakeholders who will be named by the board of directors to carry out the business activities.
Furthermore, it is a distinct company with its own trademark and copyright.
3) Stakeholders: The impact of business organisation is majorly to the overall performance in the
stakeholders. In accordance with the private organisation, Cyclacel consist of government,
employees, customers and other agencies that is quite responsible for the organisation.
Voluntary organisation: It is an organisation which refers to the various activities and functions
in which the involvement of government in some instance is much. If talking about one of the
famous organisations in UK is Cancer Research and it is being considered for properly
understanding about the legal structure and purpose of different voluntary organisations. Cancer
Research is one centre which are providing help for cancer patient in United Kingdom. The
amazing organisation which has independent trust and small companies are included in different
parts of the world.
1) Purpose: Cancer Research is an organisation that comes under voluntary list. It is to
maintain the standard of living and helps in providing the medicines and treatment for
cancer patient with are at the reasonable cost and helps in achieving the success so that
there will be larger standard of living of availability of medicines at the reasonable cost.
There is a need to take such decisions that helps in performing the roles and
responsibilities so that there will be development in equality terms including individuals
and those who are living in the country.2) Legal structure: It is a type of voluntary organisation where there is some policies and
rules that are made by the government. Cancer Research taken all the major decisions
keeping a check on legal policies as well and it will helps in achieving the development
of societies and employees. It includes is legal requirement for this organisation in order
3

clearly define the purpose in order to starting their business as well as establishing formal
relationship between the parties as well as considered as 3 trustee and owner.
 Trust: It is also regarded as a type of charity and a prestige category that is formed under
the terms and conditions of a trust deed but lacks a proper legislative structure. This
group's representatives must create a contract that includes different provisions that take
into account the organization's legal regulations.
 Unincorporated: This form of charity is not specified in the constitution, and in order to
operate their organisation smoothly, they should have various characteristics and
restrictions regarding capital distribution, as well as establish their own regulations and
norms.
Stakeholders: In the voluntary organisation, stakeholders are directly or indirectly affecting the
functioning structure of Cancer Research organisation. The organisation must have an increment
in the profitability and the main agenda The company needs to increase the profitability and
increase different founders, staff members and the beneficiary.
Explain the scope and size of organisation
In every organisation, there is a need that every organisation must have a good going
business activities and the size and scope of every organisations are different as well.
Private Public Voluntary
Goal Cyclacel includes a
proper structure and
the statement that
shows the growth in
Cyclacel is we will
make the best for the
people. The major
agenda for the
organisation is to
work to the best of
their ability and
achieve growth and
NHS or National
Health Services is an
important public
organisation of the
United Kingdom
because it has a clear
vision that people
should live healthy
and they would get
healthy lifestyle. The
main aim for this
organization they
Cancer Research is an
organization which is
included in the
voluntary to have a
world free of poverty.
There is a need to
give a proper
treatment to the
people in terms of
culture, caste and
creed in which they
belong. The main
4

success. The clear and
the best vision.
followed by the
Cyclacel is the
qualitative services
which is to be achieve
in the community, the
major components
including shareholders
and the performace of
organisation.
The clear vision of the
Cyclacel is to have a
world's biggest and
the top pharmaceutical
company which will
be on higher scale
after 5 years. The
main aim of this
company ro enhancing
profitability and
productivity of
company.
serve people in order
to providing
sustainable life.
mission of the
organization is any
law or the mission of
the organization is
part of overall country
and it is against the
injustice of poverty
that is taking place in
a country. The main
aim and purpose of
this organization in
order to serves the
society.
Size and scope It includes wide scope
and high quality of
services for all the
consumers.
National health
services is a public
organisation hwich is
dealing with the
health sector from
1948 and it includes
all medicines facilities
available to the
The voluntary
organization is
established in 4
February, 2002 as
well as 40,000
volunteer are
working. It
considered as present
5

consumers. in many countries and
200 clinical trails are
available. and in the
coming years it will
be at the top list.
Market share Asia and Europe are
the biggest market
share of the
organisation.
The various type of
services including
Scotland, England,
Ireland, Wales and
many others.
Cancer Research has
the major market
share in the global
business. The efforts
made by the global
business in the United
Kingdom are the
efforts by
organization is
leading towards their
enhanced scope and
development.
Size of the
Stakeholders
It has more than
500,00 stakeholders
that are working in the
organisation.
2.4 million people are
connected with NHS.
Approximately
40,000 volunteers are
all included in the
Cancer Research and
3,964 employees are
currently working.
Sales and the
turunover
The sales and turnover
is 64.222 billion
pounds.
A non-profit
organisation which is
not specifically run
for the sales and
turnovers.
cancer Research sales
and turnover is
approximately 638.81
million.
6

TASK 2
Critically analysed interrelationship between different organisation functions.
Business function plays crucial role in organisation in order to performed effectively to
achieving organisation goal and objective of company. HR manger accordingly trained to their
employees so performed well easily attained their targets effectively. There are various
functional heads has power to distribute work to their employees and they are accountable to
perform in effective manner so they smoothly run their business operations in effective manner.
Accounts department performed in effective manner in order to clear the checks, bills, salary,
checkouts and clerical work similarly customer department provides services into 24/7 so they
solve problem of customers in order to provides best solution. In context of Cyclacel, there are
ample numbers of business function which is regulated by functional head and they have to
power and responsibility perform task in effective manner so business functions performed
smoothly (Aithal, 2016). There are various kind of business function such as production,
administration, customer service, distribution, IT department, finance, marketing, sales and
human resources management. All the function worked together and internally linked on that
basis they achieved daily routine target so which are mentioned below.
Marketing & Finance-: In relevance of organisation, these is department which includes
they promotes the product and services, developing new strategies and monitoring external
environment. These departments helps to enhancing sales revenue and they are coordinated work
with other department also in order performed in effective manner. Finance is important
department which also said that it is major pillar without that organisation activities cannot
conducted so they are preparing budget, estimation of cost which organisation carrying different
activities. They helps to marketing function because these department required fund due to
promotes the goods and services so finance department preparing budget for marketing
department. These functions are linked to other department also such as customer service,
production and sales (Ali, 2019). Marketing and finance both are working together in order to
enhancing profitability and productivity of company
Marketing & Human resources-: These department work together in order to Cyclacel
manger dealing with both the department so they are worked accomplished with collaboration
because marketing manger provides all the details of HR manger in order to need of that
numbers of candidates so accordingly HR manger recruiting candidates and conduct proper
7

selection procedures which includes right person should be placed at right job. It involves all the
departments provides the information which relates to training and seminar so accordingly HR
manger conduct seminar because it is essential to employees as well as company. It helps in
employees career and developing new opportunity along with organisation they easily achieved
the objective of company (Badzińska, 2016). The main objective in order to both the functions
work combinable in order to increasing the organisation performance as well as employees.
Marketing & sales-: In respect of company, marketing and sales function has great
combination so they performed in effective manner because without marketing department sale
cannot be performed so it is essential sales manger assigned sales targets to sales executive
because it helps to enhancing profitability of company. Both the departments word with
coordinated in order to promotes the various products and services through utilised various sales
promotion tools and techniques in order to increasing sales revenues. They accordingly
developing new marketing strategies which helps to grape the market opportunities and gaining
competitive advantages. The main aim of the organisation because both function work
coordinate in order to gaining competitive advantages at market place.
Marketing & Customer service department-: Customer service department of Cyclacel
provides the best solutions to customers in order to solve the queries of customers, problems and
concern. It is responsibility and duty of services executives they solve the problems of customers
and present service in that manner which attract many customers and developing brand image in
the mind of customers. These department collaboratively worked with marketing department on
that basis service department provides information to marketing department regarding products
and services so accordingly marketing department modify and improvement in products and
services. These department also gives feedback to marketing department so on that basis change
are followed in organisation (Pikhart, 2017). Organisation providing best services to customers
and developing brand image in the mind of customer.
Marketing & production department-: Marketing department and production department
worked together in order to performed very effective way because production department
manufacturing product and basically converted raw material into final products so marketing
department conducting research about the market trend, taste and preferences so accordingly
produced goods and services. Both the functions smoothly flow of operation in order to achieved
8

the organisation goal and objective of company. Both functions plays vital role in order to helps
to achieving organisation objective which refers to smoothly run business activities.
Marketing & It department-: It department plays vital role in an organisation because
technology changes drastically so essential to organisation using advanced technology on that
basis they conducting market research so accordingly and effectively changes the technology.
Marketing department conducting research on that basis they aware about the changes on that
basis helps the IT manger and developing new products and services in order to promotes the
goods and services in effectively. Both the functions are working together in order to achieving
goal of company such as utilised advanced technology which impact on productivity and
profitability.
Hence, all the functions of organisation plays important role in order to performed their
work with coordination so organisation easily growing and successful accomplished the
objectives (Brown, 2018).
Organisation structure of Cyclacel
Cyclacel has utilize proper organisation structure which followed hierarchical
organisation structure. It is structure which refers to top management plays vital role they are
power and responsible to proper control and support to all the business functions. Top level
management of organisation has centralised system in order to take all the important decision
and authority to developing new marketing strategies on that basis they follow top to bottom
communication system because mangers gives the information to subordinates regarding work
and activities so employees are accountable to informed them. Mangers monitored and
controlled whole system due to check work and quality control. Employees also shares problems
with the manger and they solve queries as well as provides best solution. Every and each
individuals followed the chain of commands and helps to eliminates confusions, conflicts and
increasing effectiveness. In context of Cyclacel, followed hierarchical structure on that basis
lower level of employees followed all rules, regulation and command and accomplished work
within proper time frame (Sadler-Smith, 2016).
Task 3
Positive and negative impacts of the macro environment
PESTLE ANALYSIS
9

Political, Economical, Social, technological, Legal and environmental are all the factors
included in the PESTEL analysis that has a huge impact on the organisation. A leading
pharmaceuticals company of British is famous for its services. Therefore, pestle analysis of
Cyclacel includes all the factors which are based on the external factors. decision makes will be
analysed below:
Political: The factors which are directly related to the organisation functining and impact
of the government. The political factors includes tax rates and act of legislation that determined
by the government.
Positive impact: Forming different policies according to which the company formulate
brings opportunities to achieve growth and success.
Negative impact: Sometimes terrorism is a direct impact to the people who are working in
Cyclacel.
Economical: Some of the factors which are related to the economy of the society
including in the economic factor. In context with the Cyclacel, factors are directly related to the
economy of the society and the components in economic sector including cost demand, profit,
prices of the company and many others.
Positive impact: Maintaining the prices and profit increment is a positive impact of the
organisation.
Negative impact: Unemployment rate and High inflation are some of the factors which
are including in the economic factor. and unemployment rate.
Social factors: These are some factors which are related with the society or business.
Positive impact: Customers have friendly environment and maintenance of the
relationships.
Negative impact: employee duties and various responsibilities are the big hurdle in
Cyclacel.
Technological factors: Technological advancement of the company is included in the
technological factors.
Positive impact: Company growth and the value increment are all specifically based on
the positive impact of the organisation.
10

Negative impact: Technological updates and increasing in the cost of production are all
included in the technological updates and it gives the negative impact because of the cost
increasing and so employees genuinely have to suffer a lot.
Environmental factors: The geographical location is the major environmental factor.
Positive impact: The support of consumers and the increasing brand value is a positive
impact of the environmental factor (Centobelli and et. al., 2020).
Negative impact: The pharmaceutical organisation is one of the major issue because I
organisation has a lot of wasted that gives a negative impact towards the organisation.
Legal factors: The rules and regulations that are formed by the governmental authorities
are included in the legal factors (Demir and et. al., 2019).
Positive impact: The governance of the company is the best.
Negative impact: cost burden and framing of the legal policies is a big issue.
Therefore, it including utilising PESTEL framework which helps to easily analysed the external
factors in order to improving condition and situation of company as well as enhancing
profitability and productivity of company.
Task 4
Internal and external analysis of organization
SWOT Analysis
In context with the Cyclacel, they uses the framework to analyse the trends and market
situations. This tool includes several elements which are discussed below-
Strength:
 It is a strong brand and broader the size.
 Consumer base is very strong and the market area is broader.
 New schemes initiated such as club cards.
 It includes they are effectively operating business in many other countries as well utilised
advanced technology.
 The business spends a lot of money on marketing and as a result, it has a larger market
reach. The business is known as one of the best brands in the industry, with a large
number of loyal customers. As a result, the sales of company and market share rise.
11

 The organisation offers a secure working atmosphere for its workers, allowing them to
increase productivity and profits.
Weaknesses:
 market field in unknown
 use of technology needs high training.
 They needs to depend on the financial institutions.
 The main weakness of organisation political barrier so according changes in laws and
regulation on that basis operating business activity.
 The business expands its regional activities, and management is unable to concentrate on
those regions, resulting in low productivity. The business lacks successful cost-cutting
systems and has been unable to solve this. Customers does not get new structures from
the company, which is hurting sales.
Opportunity:
 Increasing business needs to have a rise in opportunities so the investment is quiet more.
 IT include organisation has various opportunity in order to government launching and
support to this kind of organisation.
 The company has the potential to extend its business and market reach in other areas.
 The business also has the ability to collaborate with high-profile brands in order to
increase efficiency and profitability.
Threats:
 Cyclacel has a big threat and it gives a major competition in the market.
 The major threat for an organisation in order to various competitors are available at
market place so accordingly demand and supply of products.
 New entrants also pose a challenge to Cyclacel, as the new company could bring new
products to the market and reduce the market share of Cyclacel. Competitors invested a
lot of money on research and development, which may cause them to lose market share to
their competitors.
The above table suggested that, internal factors are very important for the organisation to
understand the market structure more effectively.
Interrelation of strength as well as weakness with the help of external macro element.
Strengths and weaknesses of the macro-environmental factors are discussed below:
Basis Political Social Economical
12

Strength Laws and regulations
are made by the
Cyclacel to make a
proper structure and it
should be well
organised. It is
strength for an
organisation in order
to effectively expand
business in another
countries. It includes
government making
favourable rules and
regulation for
organisation so
effectively increasing
profit and sales.
Maintaining the
relationship and an
important social factor
of Cxyclacel
symbolizes the
strength of an
organisation. It
includes organisation
to know about the
market trend and
demand so accordingly
serves the best product
and services for
customers.
The environmental
factors include goals
which are well
achieved. Economical
is macro factor so
organisation
formulating strategies
in order to enhancing
profitability and
productivity as well as
accordingly demand
and supply of product
so various factors are
not affect them such as
inflation rate, interest
rate and tax rate.
Weakness IT can be suggested
that there is a need of
some updation and
modification in the
policies because
sometimes they goes
in the negative
direction. It includes
government
developing barrier
technology
advancement so
There should be great
availability of
chemical possibilities
and it is a duty of
Cyclacel organisations
that the staff will not
be treated badly due to
any reason. It
considered as social
factor such as
customer attitude, taste
and preference
The production of cost
is higher maybe due to
unemployment rate and
the high inflation
changes that
sometimes affected in
the organisation. There
are various factor such
as tax rate are
influenced in business
and impact on
organisation
13

organisation cannot
attained their goal and
objectives.
regarding the product
and services so
accordingly to know
about the requirement
of customers and then
serves product and
services.
profitability.
Basis Technological Environmental Legal
Strength It can be suggested
that the advance and
upgraded technology
is the affect of
technological strength
in the pharmaceutical
organisation in order
to serves the best
product and services.
Keep a check on the
environmental issues
is the best strength of
Cyclacel. Environment
factor includes used
eco friendly products
so organisation
developing effective
image in the mind of
customers.
Cyclacel uses the laws
and regulations made
by the Cyclacel.
Organisation essentials
to fulfil the legal
requirements in order
to successful and
survive in the market
place.
Weakness The modifications and
investment in the
organisation is a
serious issue in the
technological sector.
It is essential to
developing in
technology in order to
increasing sales of
product and attracting
large numbers of
customers.
Policies and
requirement show
Negative
environmental effect
on the Cyclacel.
Organisation nor
considered and
produces eco friendly
products so affect their
goodwill at
marketplace.
The authorities which
is quiet High genuinely
require more times and
money in the
organisation. It
includes organisation
spend their business
operation in another
countries so
accordingly
organisation adhered to
follow the rules and
14

regulation.
CONCLUSION
From the above report it has been concluded that, it involves business environment is
crucial concept because each and very organisation essential to analysed in order to provide the
information of market condition and situation. These reports it is study about different kind of
organisation and categorized on the basis of size and shape as well as also differentiate between
the performance of organisation. It includes different business function which are linked together
and impact on its profitability and performance of business activity. They are worked their
functions with the coordination so easily evaluation conducted in order to identified
interrelationship between the functions. Further, it involves external environment which includes
various factors so organisation essential to analysed in order to exploiting new market
opportunities and gaining competitive advantages. There are impact on business performance so
such includes positive as well as negative impact.
15

REFERNCES
Books and Journals
Aithal, P.S., 2016. Study on ABCD analysis technique for business models, business strategies,
operating concepts & business systems. International Journal in Management and Social
Science, 4(1).
Ali, L., 2019. Cyber Crimes-A Constant Threat For The Business Sectors And Its Growth (A
Study Of The Online Banking Sectors In GCC). The Journal of Developing Areas,
53(1).
Badzińska, E., 2016. The concept of technological entrepreneurship: the example of business
implementation. Entrepreneurial Business and Economics Review, 4(3), pp.57-72.
Brown, R.A. ed., 2018. Chinese business enterprise in Asia (Vol. 7). Routledge.
Pikhart, M., 2017. Managerial communication and its changes in the global intercultural business
world. In SHS Web of Conferences (Vol. 37, p. 01013). EDP Sciences.
Sadler-Smith, E., 2016. The role of intuition in entrepreneurship and business venturing
decisions. European Journal of Work and Organizational Psychology, 25(2), pp.212-
225.
Seetharaman, P., 2020. Business models shifts: Impact of Covid-19. International Journal of
Information Management, 54, p.102173.
Søilen, K.S., 2016. A research agenda for intelligence studies in business. Journal of Intelligence
Studies in Business, 6(1).
(Aithal, 2016)(Ali, 2019)(Badzińska, 2016) (Pikhart, 2017)(Brown, 2018)(Sadler-Smith, 2016)
(Seetharaman, 2020)(Søilen, 2016)
Habib, A. and Hasan, M.M., 2020. Business strategies and annual report readability. Accounting
& Finance, 60(3), pp.2513-2547.
Demir and et. al., 2019. Ambient Intelligence in Business Environments and Internet of Things.
Guide to Ambient Intelligence in the IoT Environment: Principles, Technologies, and
Applications.
Centobelli and et. al., 2020. Designing business models in circular economy: A systematic
literature review and research agenda. Business Strategy and the Environment, 29(4),
pp.1734-1749.
16