Business and the Business Environment

This presentation provides an overview of the business environment and its impact on organizations. It covers the different types and purposes of organizations, the size and scope of various organizations, and the interconnection of departments within a company. The presentation also emphasizes the importance of adapting to market conditions to achieve business goals and objectives.

Business and the
Business
Environment
TASK 1

TABLE OF CONTENT
 Introduction
 Different types and purposes of organisations
 Size and Scope of various types of organisations
 Conclusion
 References

INTRODUCTION
Business environment is characterised as place where
business operations that are executed by organisations to
timely attain goals and objectives. Companies have
internal and external factors which directly and indirectly
impacts on system functionality.

TYPES AND PURPOSE OF
ORGANISATION
Business environment have different types of corporations
which execute business operations to generate sufficient
profit. Private and public are two forms of sectors which
are present in market and conduct operations either for
profit, not for profit or serve as NGO.

Comparison between Enterprises
Basis of Comparison For Profit NPO NGO
Meaning Market have various
corporations which are set
up by executive to utilise
money and generate
adequate profits from
business. It is essential that
administration have
sufficient material and
manpower to provide
products and services in
respect to needs and wants
of people.
Non-profit organisation is
defines as firms which
require to provide variety
of items and services in
market to gain adequate
revenue. Owner conduct
activities in such manner
that they have appropriate
amount of funds in
company which are due to
reinvestment of money in
business.
NGO stands for non-
governing organisation
which are started by
individuals as funders and
volunteers. They require to
utilise funds and have
adequate resources to
deliver appropriate items
and services to people to
enhance their health and
living.
Area of Operations This aspect includes firms
which execute activities
either at large scale or at
limited level.
This form of corporations
comprises limited scope
actions.
NGOs require to execute
large scale operations.
Objectives This sector prime goal is to
grab attention of large
number of people to
generate adequate profit.
These firms which are set
to encourage art, science
and commerce concepts
among individuals.
NGO main motive is to
develop underprivileged
communities by providing
them charitable services.

Types of Organisation
Business environment has various types of organisation which
are present in market to attain appropriate positions and
image in market. It is necessary that management
organise activities and make system function in according
to market conditions which help them to timely
accomplish its aims and purposes.

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This is explanation which is defined below:
 Public sector
 Private sector
 Voluntary organisation

Public sector
Public sector: This segment comprises firms which are managed and
regulated by government to generate adequate income. These
organisations advantage UK to enhance country by increasing
employment opportunities and providing adequate items and
services in respect to demands of people. National Health Service
(NHS) is example of public organisation which gets capital from
national health care system which is famous and individual player in
this sector.

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Legal structure of public sector:
Central government – Public firm regulate, operate and manage by the
central and state authority for the social welfare.
State government: These business firm need to design stem and make
it function in according to rules and regulations of authorities.
Local government: These are enterprise which enhances employment
opportunities and products for welfare of society.

Private sector
Private sector: This concept includes organisations which are set up
by individuals to utilise funds and execute adequate business
operations in according to achieve their goals and objectives. Marks
& Spencer is multinational retail firm which give quality food,
clothes and home products

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Legal structure of private sector:
Sole proprietorship: The sole trader facing different unlimited liability
at the time of smoothly running of business operations and functions.
It can be defined as unincorporated entity in which no legal
difference between business and owners. A sole trade proprietor need
insurance number for opening a business in the UK market place.
They have to register self assessment with the HM revenue and
customer properly.

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Partnership: Two or more people come together in agreement to have
adequate resources in firm to accomplish goals and enhance
profitability. For starting a business with partnership in UK, so
company require to register self assessment tax, operate business as
per the regulations, name the business according to mutual
agreement and share equal profit among partners.

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Limited companies: Public and private are two forms which define that
shareholders and directors have limited liability which is due to
amount of paid up shares in company. For setting limited business,
there is necessity of a name and address of company, must have one
director and one shareholder, also follow all legal terms and
conditions and set up firm for corporate tax in the UK nation.

Voluntary organisation
Voluntary organisation: This sector define organisation
which are established by individuals to conduct business
operations for welfare of society. This help them to
generate adequate profit which is reinvested in business
to overcome problems and difficulties from society.

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Legal structure of voluntary sector:
Trust – The trust is the traditional structure for a charity and it is
usually regulated by trust deed that set the main objective of the
trust, name of the trustees and also provide funds for the
management of trust.
Charitable Incorporated Organisation (CIO's) – It is new form of
charitable firm which main motive is to provide charity and it is
registered and operated solely by the Charity Commission under the
law.

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Unincorporated association - When large group of people come
together for attaining common objective or motive and perform for
gaining public benefit. They are not recognised under the law as
legal venture, therefore the liability of regulated bodies are
unlimited.

SIZE AND SCOPE OF VARIOUS
ORGANISATION
Market have different kind of corporations which differ with
each other in respect to objectives, size, scope and
structure. Management require to design system and
implement appropriate tools and techniques which help
them to provide adequate items and services in
marketplace in according to needs and wants of people.

OBJECTIVE DIFFERENTIATION
Micro Small Medium Large
Main focus of
these firm is to
gain adequate
funds for
maintaining
living standards
and financially
secured in
society.
Prime motive of
such organisation
is to utilise
resources and
deliver adequate
items and
services in market
to gain sufficient
revenue from
business.
Main goal of
these enterprise is
to expand
business and
increase market
reach; thereby
have appropriate
customers to
enhance
profitability.
Large scale firms
objective is to
execute business
operations
effectively which
help seniors to
sustain in market
for longer period.

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These are various sectors which are present in market to execute
business operations in according to accomplish goals and
objectives. This help UK to develop economy by increasing
employment opportunities to help society members have
sufficient money to regulate and manage their livelihood.
 Private Sector
 Public sector
 Voluntary sector

Private sector
Private Sector- This segment includes enterprise which are beneficial for
developing state of economy as they increases employment opportunities.
M&S provide different items and services in according to needs and wants
of people.
Size of Marks & Spencer: M&S has 970 stores which are established in UK
and about 1500 branches are present all over world.
Scope – There are various types of goods which are provided by company to
their customers at international level. There are various products which are
serve to the desired buyers and achieve competitive advantages in better
manner.

Public sector
Public sector- This segment comprises firms which are maintained and
regulated by government to provide adequate items and services for
welfare of society. It is necessary that organisation has minimum 7 people
and maximum number is limited.
Size of NHS: For this, firm require 1.4 million staff members which benefit
company provide things in according to needs and wants of public.
Scope of NHS - The scope of NHS is to deliver various services related to
healthcare to their patients according to the need so they can easily recover
with their diseases, flues, cancers and so on. They can serve their
healthcare facilities or service to the national as well as global level people.

Voluntary sector
Voluntary sector- This sector includes companies which individuals operate to
execute activities effectively and accomplish objective of providing welfare
to society.
Size - Oxfam is voluntary firm which has registration in UK and have 15
charitable trusts established in nation to conduct appropriate activities to
reduce poverty level.
Scope – The voluntary sector has wide scope where every nation need to
reduce poverty and serve best services to the poor persons. So they can
survive their live in better condition. Moreover, this sector are focus on
policy investigation and eradication.

CONCLUSION
From the above report, it can be comprehended that business environment
comprises two elements which are internal and external. These factors
directly or indirectly influence on business activities. Market have different
types and purposes of organisation which vary with each other in respect to
size, scope, structure and objective. HR, finance, production, marketing,
sales, IT and R&D department function effectively and also in
interconnection which help company to accomplish goals and objectives
within defined time

REFERENCES
 Hamilton, L. and Webster, P., 2015.The international business
environment. Oxford University Press, USA.
 López-Gamero, M.D., Molina-Azorín, J.F. and Claver-Cortés,
E., 2011. Environmental uncertainty and environmental
management perception: A multiple case study. Journal of
Business Research. 64(4). pp.427-435.

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