The Business and the Business Environment Introduction

BUSINESS AND
THE BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION:..........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Different types and purposes of organisation; public, private and voluntary sectors and
legal structures............................................................................................................................4
P2 Explain the size and scope of different types of organisations..............................................5
TASK 2............................................................................................................................................8
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................8
TASK 3............................................................................................................................................9
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................9
TASK 4..........................................................................................................................................12
P5 Conduct the internal and external analysis of specific organisations in order to identify
strength and weaknesses...........................................................................................................12
P6 Explain how strengths and weaknesses interrelate with external macro factors.................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................14
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INTRODUCTION:
Business environment is an important attribute for organisation and consist all internal
and external factors that directly and indirectly affects its proceedings. On other hand business
environment in that includes individuals, groups and institutions and outside environment that
operates and gives their contribution in economic development with self development. These
factors affect overall working and its profitability. This report is based on B&M European Retail
value S.A that is European Based Retail organisation and it is listed under stock exchange of
London. That organisation is client of Yorkshire bank that is also a UK based bank that's main
motive is to give important values and principles in day to day life of their clients. This report is
based on different types, sizes and scope of organisation that play an important role in economic
development. It elaborates about interrelation ship among various functions and also link
between functions and structure of organisation. In addition to both negative and positive aspects
of macro environment factors in organisation. Further it elaborates relationship between micro
and macro environment of business and their effects on organisational growth and development.
TASK 1
P1 Different types and purposes of organisation; public, private and voluntary sectors and legal
structures.
Business environment play a significant role in organisation to adopt changes that are
important part for organisational development and enhancement. Business environment evaluate
threats and weaknesses to business and give guidance to improve them. In environment there are
different factors that helps to firms in gain organisational goals and objectives(Andersson,
Forsgren and Holm, 2015). There are different types of organisation in that includes public,
private or voluntary organisation and their sub parts that also known as their legal structure.
Public organisation:
Public sector is an attribute that operated by government and they giving their services to
masses. The motive of public sector firms is to provide services to customers by earn profit. The
main source of their fund is taxes, fees and financial transfers of income generation for them
(Boons and Lüdeke-Freund, 2013). Examples of public sector is Atomic weapons establishment
that works for design and manufacture of weapons. Their main purpose of this organisation is to

give intelligence with support by providing solutions for terrorism and nuclear. And put efforts
in organisation development in operation works and activities.
In public sector organisation when a person pays taxes from their salary it creates sense
of responsibility that comes from public sector workers. An worker can contribute in local,
society and nation development by their work. Private organisations works for consumers and
also for their benefits. That sector faces less competition in comparison to other organisations. It
provides such services that are less profitable in comparison to other fields. Public sectors also
work for welfare and provides goods and services to people who don't afford goods and services.
There are some disadvantages of public sector that are as follows:
public sector should be considered as bureaucratic in which red tap ism and corruption prevails
very much. Public sector have less profit motive and also lack of innovation in that sector. In that
sectors if changes occurs that mean change in priorities and that brings variation in funds and
spending.
Legal structure of public sector organisation:
Public sector is one of another type of joint stock company like a private limited
company. Public sector is run and operated by board of directors in perspective of shareholders
and A.G.M for that shareholders vote for certain issues of company. Public limited company
have different memorandum of association and articles of association from private limited
company. In some cases organisation have to follow rules and regulations or follow laws in best
interest of shareholders, for it they have to issue certificate of incorporation and trading
certificate that allows to sell in market. In that case price of shares fluctuate according to
perception of investors.
Private organisation:
Private organisation which is run by individuals and firms rather than government to earn
profit and large market share (Chen, Chiang and Storey, 2012). Private organisation plays crucial
role in economic development. Example of private organisation in UK is B&M retail that has
chain of stores that deals in variety of products such as home and living, furniture and electric
items etc. expansion of firm and gaining competitive advantage are major objectives of private
organisation.
Private jobs access opportunities from outside world according to consumer needs and
demands that gives profitability to both consumers and organisation also (Hilton and Platt,

2013). It creates large no. of employment opportunities to masses. It work to bring innovation in
market that very much beneficial. It is more efficient sector and has less risk in comparison to
public sector (licensing of product and services).
Disadvantages of private sector consist there is less job security and employees become
dissatisfied from jobs. It has restrictions in transferability of shares.
Legal structure of private organisation:
This is another part of joint stock organisation which has separate legal identity from
their owners. These organisations commonly small, family run organisations that are owned and
operated by stakeholders. In private organisation each member is part of firm and not any
circumstances shares should be not given to general public. In that organisation every member
have limited liability and company is run by board of directors and head of company is
chairman.
Voluntary organisation:
Voluntary organisation is entity which is created or framed by groups that totally rely
upon unpaid manpower, work as a charity firm. The sole motive of voluntary organisation is
welfare of people. Example of voluntary organisation is Oxfam. It has employee commitment
because employees work by their personal interest and committed to their works and objectives.
Non profit organisations provides services to overlooked people and communities that are
neglected so that it helps in enhancing people standard(Kew and Stredwick, 2017).
In disadvantages they have limited funds that is greatest challenge for them. They also faces
social pressure while dealing with public due to their beliefs and attitudes.
Legal structure of voluntary organisation:
There are important considerations that have to take while selecting legal structure of
organisation in which includes part of income come from grants and donations and from selling
goods and services. So it is important to access source while selecting best source of funding. In
organisation members take part in voting and in large organisation member take part to elect
board of directors and trustees so that effective results should be achieve. In legal structures
includes many rules and regulations consist in which payment of trustees, record keepin and
political campaign are basic rules that have to follow.
Advantages and disadvantages of different organisations:
Public organisation:

it has less no. of competitors in comparison to private sector and it gives large no. of
opportunities of employment. On other hand in that sector lot of corruption and bureaucratic are
exist that create hurdles in development.
In private organisation it help to access requirements of consumers and launch innovative
products that helps in increase standard of living and less risky on other hand in that job security
is not available.
In voluntary organisation it gives advantages to overlooked community that don't able to
afford goods and services. On other hand it has limitation of funds.
Sole traders are responsible for their own decisions and with profits and losses so it is
both advantage and disadvantage for them. It takes all decision that gives accuracy.
Partnership firms distribute their liabilities to other members so they have limited liability
and they in a ratio distribute both risk and profits that are both advantage and disadvantage for
them. In that sometimes conflicts arises.
P2 Explain the size and scope of different types of organisations
In present scenario competition is very fierce and large no. of organisations operates in
that environment (Cohen and Kietzmann, 2014). There are many organisations that operates in
different size and scope and for varies objectives and play a important role in economic
development, organisation types, scope with their advantages and disadvantages that are as
follows:
Basis of difference Atomic weapons
establishment
B&M retail Oxfam
Work and objective Atomic weapons
establishment works in
design, research and
development in
weapons. It provides
services in nuclear
deterrence mission by
more than 60 years. It
main objective to give
B&M European retail
organisation that formed
in 1978, now it is one of
the most well known
organisation in UK. Its
objectives is to provide
delighted shopping
experience to customers
with fun, give fantastic
It is a non
governmental
organisation and it
comes in territory
sector. Its main
objectives is to
work for reduction
in poverty and
injustice with