Business and the Business Environment

Business and the Business
Environment

INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
P1 Types and purpose of organizations...................................................................................................3
P2 Size and Scope of different types of organizations.............................................................................4
M1 structure, size and scope of Coca Cola and links to its business objectives and product or services. 4
P3 Relationship among different organizational functions and their link with organizational objectives
and structure............................................................................................................................................7
Advantages and disadvantages of relationship among organizational functions and its impact upon
organizational structure...........................................................................................................................8
CONCLUSION..........................................................................................................................................9
REFERENCES........................................................................................................................................10

INTRODUCTION
Every Business operates in two type of environment, such as micro and macro
environment. The factors under these two environment are different in terms of the way it affects
the operations of various businesses. In other word, micro environment has a direct impact while
macro environment has an indirect impact over the operations of the organization (Quélin,
Kivleniece and Lazzarini, 2017). The present report aimed to analyze both micro and macro
environment of Coca Cola and its close competitor like Pepsi to make out how both micro and
macro environment has an impact on Coca Cola and Pepsi. Also, how they are gaining strengths
and facing weaknesses due to the impact of such environmental factors. Both Coca Cola and
Pepsi are operating in beverage industry and competing with each other.
MAIN BODY
P1 Types and purpose of organizations
Organizations are generally categorized into three categories:
Public sector organization
Organizations operating under this sector are commonly formed for the purpose of
providing social welfare and social development. Such organizations are run and owned by
governmental bodies which aims to provide public services to the citizens or society (DeHart-
Davis, 2017). Their main motive is not to make more and more profit, instead of that their
motive is just society’s welfare and wellbeing. Some of the examples of public sector
organization are; public educational institutions, police and military services, public roads and
transportation, etc. Example of organization operating in public sector in UK is BBC (British
Broadcasting Corporation). It was found by government of UK, and it offers public service of
broadcasting.
Private sector organization: Private sector organization are mainly formed for the sole motive
of generating profit from the product or services it offers. Such organizations are owned by
private body or individuals. There are various forms of organization that can be formed under
this sector, such as sole proprietorship, partnership and corporations of all size (Parrado,
Reynaers and Rama, 2020). Sole proprietorship is owned, managed and controlled by the single
owner and he is the sole recipient of whatever the profit is earned by the business. For example;
grocery store or saloon shops. Partnership business are formed by two or more individuals with
the common aim to generate profits and the profit are shared among them in the ratio agreed
prior to the formation and operations of such business. Corporations are large form of
organization with the owner as those who contribute towards the capital of the company,
commonly known as shareholders. For example, Coca Cola, which is corporation based in
United States and producing beverages and related products.
Voluntary sector organization: Organization formed for social enrichment and welfare who
aims to make social impact instead of earning and making profits. Such organizations are formed
and owned by private body or individual but here they are considered to be made for nonprofit