Business and the Business Environment

This presentation explores the types, purpose, and legal structure of different organizations, including public, private, and voluntary organizations. It also discusses the size and scope of NHS, McDonald's, and Red Cross, as well as the interrelationship between organizational functions.

BUSINESS AND THE BUSINESS
ENVIRONMENT

 Business environment implies for the factors (internal and external) which in turn have
significant impact on firm’s operations.
 This PPT includes the types, purpose and legal structure of different firms like public
organisation, private organisation, voluntary organisation, small, medium and micro
enterprises.
 It also describes the size and scope of NHS, McDonald's and Red cross and the
interrelationship between the organisational functions of McDonald's.
INTRODUCTION

Types of organization
P1.Types, purpose and legal structure of different organizations
PUBLIC ORGANISATION
PRIVATE ORGANISATION
VOLUNTARY ORGANISATION-

Contd…
PUBLIC ORGANISATION-
Purpose-
 The primary objective of such organization is the welfare of the people and not profit
maximization.
 To make effective use of resources for the benefit of the society (Faghih and Zali,
2018).
Legal structure-
• Paid up capital: minimum paid up capital required for public company is rupees 5 lac.
• Minimum members: at least 7 members are needed to begin a public corporation.
• Maximum members: there is no limit on maximum members, Unlimited members can be
appointed (Lægreid and Verhoest, 2010). 02/03/19

PRIVATE ORGANISATIONS-
Purpose-
 The foremost objective of private organization is to maximize profit.
 To create the wealth of the stakeholders.
 Enhance the goodwill of the company.
 To reach competitive position in the marketilitating transparency to the members of the company
(Kopnina and Blewitt, 2018).
 To achieve the winning position across the world
Legal structure-
 Paid up capital: no limit on minimum paid up capital.
 Minimum members: minimum 2 members are required to create a private company (Bryson, 2018).
 Maximum members: private organisation can have maximum of 200 members.
Contd…

Voluntary organization: Purpose-
 The prime objective is to enhance the wellbeing of the individuals.
 To achieve a specific goal.
 Safeguard the health and life of the human being.
 The prime objective is to enhance the wellbeing of the individuals (Ridley-Duff and Bull, 2015).
 To achieve a specific goal.
Legal structure-
Voluntary organisations can be formed as a trust, unincorporated association and a private company limited
by guarantee and the voluntary groups follows the legal structure as per the provisions of the law given
for trust, association and private company limited by guarantee (Bryson, 2018).
Contd…

Contd…
MICRO ENTERPRISES-
• Micro business have assets less than $250000 per year. It can hire employees
below 10. They facilitate products and services in their local region.
• For example- local tailor shops. Sole traders have control over the firm and owner is
responsible for liabilities of the firm (Bryson, 2018). Sole trader is responsible for paying
tax on the bases of personal income.
02/03/19

Contd…
MEDIUM ENTERPRISES-
• These firms can hire approx 41employees as per the UK standard.
• These firms are required to maintain ongoing cost record and volume.
02/03/19

Contd…
SMALL ENTERPRISES-
• These firms get registered as an LLC corporations and can hire approx 500 or
fewer employees. For example- partnership firm, corporate, sole proprietorship firms.
Partnership firms are made with association of two or more people (Lægreid and
Verhoest, 2010).
• Both partners are responsible for overall liability of business. These firms have to pay
corporate tax rather than personal tax.
02/03/19

Basis of difference NHS McDonald's Red Cross
overview National health service
is the public company
funded for UK. It is the
largest corporation that
enables the residents in
making payments for
the healthcare
(Hamilton and
Webster, 2018).
It is an American fast
food restaurant chain
founded in 1940 and
headquartered in
Chicago, U.S.
It is the world's largest
voluntary organisation
that ensure safety and
protect the health and
life of humans from
any sufferings.
P2. Size and scope of different organisations

It provides all types of
healthcare services
like eye care, primary
care, dental care, long-
term care etc.
The product menu of
Mc Donald's include
burgers, soft drinks,
French fries, ice
creams, Mcflurry,
shakes, chicken
nuggets and many
more.
They facilitate
emergency kits, first-
aid boxes, relief
services etc.
Market size The major working of
this company is in
Europe region
countries like Scotland
northern Ireland,
Wales and England.
It has around 37,241
restaurants at different
locations worldwide.
It has its presence
nearly in every
country and around
190 national societies
are the part of the
committee of red
cross.
Contd..

Times It is majorly working in Europe
region and has a wide scope to
expand in the future.
This company has a huge scope as
it has a worldwide presence in
more than 101 countries.
As the focus is on humanitarian so
the scope of red cross is wide in
those countries that are facing
health sufferings.
Vision Vision of NHS is to deliver better
health, better care and better value.
To help financially for healthcare
and to provide better health
services (Our mission, vision and
values, 2019).
Creating positive environment and
to capture the large market share
and achieving competitive
advantage over its competitor
(McDonald’s Mission Statement &
Vision Statement (An Analysis),
2019).
Preventing the life of the human
and protect the human beings from
any health sufferings. The
American Red Cross, through its
strong network of volunteers,
donors and partners, is always
there in times of need.
Mission To provide quality of care to
every person every
day Delivering the best healthcare
services across the world.
To become a leader in fast food
restaurant chain. McDonald's
brand mission is to be our
customers' favorite place and way
to eat and drink.
To protect the lives of the people.
The American Red Cross prevents
and alleviates human suffering in
the face of emergencies by
mobilizing the power of volunteers
and the generosity of donors.
Contd..

Objective Its objective is to serve the people
who are facing any health issues.
The NHS will help to keep people
healthy and reduce health
inequalities. The NHS
will respect the confidentiality of
individual patients and provide
open access to information about
services, treatment and
performance.
Earning profit and increasing the
revenue is the main objective of
McDonald's. McDonald's main
aims are to serve good food for
great value in a friendly, fun
environment, as well as being a
socially responsible company that
provides good returns to our
shareholders.
Preventing the rights of poor
people and saving the life of the
patient. Objective of Red Cross is
to reduce the number of deaths,
illnesses and impact from diseases
and public health emergencies.
Increase local community, civil
society and Red Cross Red
Crescent capacity to address the
most urgent situations of
vulnerability.
Organisational & legal structure The board consist of 42 members
and act as an independent firm.
Effective divisional structure and
compliance team that works on
legal laws and policies to protect
the right of the company.
Not wholly independent and the
legal matters are handled by the
board.
Stakeholders information All the working members,
governments, investors, patients
and the doctors and other service
providers are the stakeholders of
the company.
Employees, board members,
customers, shareholders,
suppliers, government, investors
act as the stakeholders of the
corporate.
Service providers like doctors,
government and all the people
availing the services like
customers, suppliers etc. and the
investors of the Red cross are
treated as the stakeholders.
Contd..

P3. Inter-relationship between different organizational functions
Marketing
Finance
(Develops budget
according to the
requirement of marketing
department)
HR (recruits personnel as
per the need of marketing
department)
Operations (Develops
strategic framework as per
the input given by
marketing dept.

 The above report concludes that business environment influences the business to the
greater extent and different organizations have different objectives and legal structure.
 All the organizational functions are inter-related and go together.
Conclusion

Aydiner, A. S. and et.al., 2019. Business analytics and firm performance: The mediating role of
business process performance. Journal of Business Research. 96. pp.228-237.
Beatty, J. F. and et.al., 2018. Business law and the legal environment. Cengage Learning.
Calabrese, M. and et.al., 2018. From mechanical to cognitive view: The changes of decision making
in business environment. In Social Dynamics in a Systems Perspective (pp. 223-240). Springer,
Cham.
Charter, M., 2017. Greener marketing: A responsible approach to business. Routledge.
Faghih, N. and Zali, M. R. eds., 2018. Entrepreneurship Ecosystem in the Middle East and North
Africa (MENA): Dynamics in Trends, Policy and Business Environment. Springer.
Hair Jr, J. F. and et.al., 2015. Essentials of business research methods. Routledge.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
REFERENCES

Contd..
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business.51(1). pp.23-34.
Kopnina, H. and Blewitt, J., 2018. Sustainable business: Key issues. Routledge.
Mbaye, A. A. and Gueye, F., 2018. The Competitiveness Challenge of the Formal Sector in
Francophone Africa: Understanding the Role of the Informal Sector and the Business
Environment. In Africa’s Competitiveness in the Global Economy (pp. 25-51). Palgrave
Macmillan, Cham.
Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment
in delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Quinlan, C. and et.al., 2019. Business research methods. South Western Cengage.
02/03/19

Contd..
Lægreid, P. and Verhoest, K., 2010. Introduction: Reforming public sector organizations.
In Governance of Public Sector Organizations (pp. 1-18). Palgrave Macmillan, London.
Bryson, J. M., 2018. Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Online
McDonald’s Mission Statement & Vision Statement (An Analysis). 2019. [Online]. Available
through: < http://panmore.com/mcdonalds-vision-statement-mission-statement-analysis >.
Our mission, vision and values. 2019. [Online]. Available through: <
http://www.hrch.nhs.uk/about-us/our-strategy/our-mission/ >.
Red Cross Mission, Vision, and Fundamental Principles. 2019. [Online]. Available through: <
https://www.redcross.org/about-us/who-we-are/mission-and-values.html >.
02/03/19