Business and the Business Environment

Business and the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1.................................................................................................................................................3
P1 Different types and purposes of organisations.......................................................................3
P2 Size and scope of different types of organisations.................................................................5
LO 2.................................................................................................................................................7
P3 Relationship between different organisational functions and the way they link themselves
to organisational objectives and structure...................................................................................7
LO 3.................................................................................................................................................9
P4 Positive and negative impacts of the macro environment on business operations with
examples......................................................................................................................................9
LO 4...............................................................................................................................................10
P5 Internal and external analysis of the specific organisation..................................................10
P6 Interrelation of strengths and weaknesses with external macro factors...............................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment can be defined as the collection of all the factors, both internal as
well as external impact a business (Cepel and et. al., 2018). The factors can have an impact on
each other as well as on the business. The factors can range from technological advances,
implementation of government policies, market conditions etc. An organisation has to keep all
these factors in mind before developing and formulating any new strategies. Marks and Spencer
is an international brand, headquartered in Westminster which was founded in 1884 by Michael
Marks and Thomas Spencer. The brand is recognized globally offering clothing, food and home
products of high quality. The report covers an explanation of various types of organisations, their
purpose, size and scope. It also describes the various functions within an organisation that link
themselves to the objectives and structure of the organisation and work in coordination and the
positive and negative impacts of the macro environment on different operations of business. An
internal and external analysis of the company and the interrelation of strengths and weaknesses
with the various external macro factors is also explained.
MAIN BODY
LO 1
P1 Different types and purposes of organisations
There are different types of organisations that have their own goals and objectives such as
private, public and voluntary organisations. All organisations vary in their sizes, scope and
structures. A company from each sector and its organisational as well as legal structu5re is
described below - Public sector organisations – Public sector organisations are the ones that are owned by
the government of a country and are primarily focussed at providing services to the local
citizens in order to fulfil their needs and meet expectations (Clarke, Li and Xu, 2016).
NHS or National Health Service is a public organisation that provides health services to
the people and is owned by the UK government.

◦ Purpose : The primary purpose of this company is to give health services to the
people who can't afford to avail heath services because of their low levels of
disposable incomes. Therefore, the services that NHS provide are affordable and
cheap. Public sector organisations are funded by the government and hence their main
mission is not to make profits but provide affordable services to the citizens.
◦ Objective : The main objective of the company is to create an environment that is
helpful for the patients by providing them health benefits and a courteous staff.
◦ Legal Structure : The company was formed through the implementation of various
acts by the Parliament and also receives funds for the government.
◦ Stakeholders : Competitors, customers etc. are the stakeholders of the company. Voluntary Organisations – Voluntary organisations are non-profit in nature and include
various companies that provide services relating to education, healthcare etc. Oxfam is a
voluntary organisation in the UK that is mainly focussed on providing services to the
poor people for their overall development (Davies, 2016).
◦ Purpose : The major purpose of the company is to provide services to people below
poverty line who cannot afford even the most basic necessities. Oxfam work towards
developing solutions in order to remove poverty.
◦ Objective : The organisation aims for the development of the people who have no
source of finance and thus focuses on their overall development and advancement.
◦ Legal Structure : Voluntary organisations can either have a corporate or an
incorporate legal structure wherein the rules are executed through various parties
who donate funds. Oxfam has an incorporate legal structure as the company is not
developed according to a stable framework.
◦ Stakeholders : Voluntary organisations have both internal as well as external
stakeholders. The respective company has donation parties, general public as its
stakeholders. Private sector Organisations – These organisations are run and controlled by sole
proprietors like Marks and Spencer which is an internationally known brand (Erasmus,
Strydom and Rudansky-Kloppers, eds., 2016).
◦ Purpose : Marks and Spencer aims to provide services to people in middle and upper
class segments by offering products of high quality.