Business Environment

This presentation provides an overview of the business environment, including the types and purposes of organizations, as well as the size and scope of various types of organizations. It emphasizes the importance of understanding the business environment for achieving effectiveness. The presentation concludes with a summary and references.

Business Environment

Table of Content
• Introduction
• Different types and purposes
of organizations
• Size and Scope of various type
of organization
• Conclusion
• References

INTRODUCTION
Business environment means the atmosphere in which
business operates. It includes all the internal and external
factors that comprises in a business and those affect the
workings of a business directly or indirectly. Effectiveness in
a business can be achieved by understandings the needs and
desires of customers and fulfilling them in a effective and
efficient way.

Different types and purposes of
organisations
In a growing economy, with diverse environment there are
various kinds of business organizations working in various
sectors of a market to attain profits simultaneously achieving
their objectives as well. For example NGO’s they work for
society and social welfare for achieving the objectives which
they laid in the beginning without earning any profits And on
the other side there are organizations who only work for
earning higher profits and achieving their goals and generating
higher revenues
• NGO and NPO
• For Profit

Continue...
Basis of
Comparison NGO NPO For Profit
Meaning NGO is basically a non-
governance organisation
which is made with an
aim of providing welfare
to the society and purpose
is to address a social or
political issue and it is
formed by independent
citizens
NPO is non-profit
organization. In this type
of organizations they sells
their products and
services to the people
who in need and for their
betterment but the profit
which is gained is not
shared among its
members.
They are formed for with the
only motive of generating
profits and revenue by
selling their goods and
services in a market.
Area of
Operations
Large Limited Can be large as well as
limited
Objectives This is being developed for
society and thus provides
welfare for needy people.
Forming with useful
motives which promote
commerce art and
Generating revenue by
attracting large number of
customers and selling those

Purpose of organisation
Our economy comprises of three major sectors which
are further discussed below:
• Public Sector
• Private Sector
• Voluntary Sector

Legal Structure of the Sector
Private Sector: In this sector, private firms are the sole traders and
can be in partnerships:
•Sole Proprietorship
•Partnership
Public Sector: Multiple type of govt. which is being included which
are being described below:
•State government
•Local government
•Central government

Size and Scope of various types of
organisations
Multiple types of companies are present which are mainly being
segmented and thus they are mainly classified on the basis of size
and scope. This kind of classification is being done in micro, small,
medium and the large which are described below:
• Micro Scale
• Small Scale
• Medium Scale
• Large Scale

Objectives differentiation:
Micro Small Medium Large
Significant reason for
this sort of business is
to give monetary
security win conscious
job among the general
public.
Gaining vocation and
keeping up regard
inside society and in
this way get open doors
for growing business by
different apparatuses
and procedures.
Primary spotlight is on
business development
inside the worldwide
market and hence
influences themselves
as worldwide pioneer to
organization by
different ways like
propelling joint
endeavours, franchisee
and numerous others.
There is the need of this
sort of business as
carrying practical inside
the nature alongside
clients along
improvement to the
economy of nation.

Scope of Different types of Organisations:
Micro Scale: They don't have substantially more extensive degree for
development of business activities as their procedure is considerably more
restricted in nature and intention is to survive.
Small Scale: There is size of extension which is substantially higher as looked at
for smaller scale level of business. This sort of business has abnormal state of
extension and they can move their business for their medium scale to substantial
scale.
Medium Scale: This sort of segment which has the high odds of going
worldwide by different ways and along these lines works business in different
business.
Large Scale: They have the extent of procuring financial matters in which they
have not built up their because of temperate condition and different lawful
issues.

Transnational Company:
Transnational organizations are the division which have the
business activities inside the nations and even their income
which is significantly higher than some economy of the nation.
Illustration can be taken up of Coca Cola which is
transnational organization and in this manner they chiefly
bargain in delicate carbonated beverages and the income in
2016 recorded were around 42 billion dollars. This sort of
income produced is considerably sufficiently more which can
give the improvement to nation which is in creating stage.

Conclusion
From the above report, it can be concluded that it is highly
essential for the company to bring out effectiveness within
the business process in order to have success. There are
mainly two kinds of factors which are micro and macro
which plays crucial role in making company attain aims and
objectives of company in better way.

REFERENCES
Robbins, S. P., Judge, T and Campbell, T. T., 2010. Organizational
behaviour. Financial Times Prentice Hall.
Siewiorek, A and et. al., 2012. Learning leadership skills in a
simulated business environment. Computers & Education. 58(1).
pp.121-135.
Teece, D. J., 2010. Business models, business strategy and
innovation. Long range planning, 43(2). pp.172-194.

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