Business and the Business Environment

BUSINESS
AND
THE BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
Part 1................................................................................................................................................3
1. Different types of organisations with their business purpose and goods or services..............3
2. Size and Scope of different organisation with difference between enterprises based on size 5
3. Organisation structures and functions relating to organisation objectives..............................7
PART 2 ...........................................................................................................................................8
4. Positive and negative impacts of macro environment on business operations.......................8
5. Internal and External analysis to identify strengths and weaknesses....................................10
6. Interrelation of strengths and weaknesses with external factors...........................................11
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Business Environment can be defined as sum total of internal and external components of
an organisation which affect its surroundings and activities performed in it (Calabrese and et.al.,
2018). It refers to all factors which impacts working of an enterprise. External factors includes
political, legal, technological and social environment whereas internal includes employees,
management, rules and policies. It is important for a company to consider all factors of
environment for its overall development and attainment of desired objectives. For this report
chosen company is Dave, it is the sole trader firm. The main aim of this report is to identify
various organisations and their business purpose and goods or services. This defines various
enterprises on basis of size and also considering interrelationship between different structures
and functions of an organisation.
Part 1
1. Different types of organisations with their business purpose and goods or services
The various types of organisation and their purpose of formation with their legal structure
are described as:
Public sector company
It is an organisation where more than half or majority shares are owned and decisions are
taken by Government and it provide services only to citizens (Cepel and et.al., 2018). The
motive of this sector is not to earn profit. Example of Public sector company is National
Healthcare Service.
Business Purpose
The main purpose of National Healthcare Service is to provide healthcare services free to
their residents and visitors also. NHS of UK aims to provide healthcare and medical services to
its citizens better than other places where target is not to earn profit through them.
Types of Public sector organisation
 State Government: All the legal activities and rules and regulations in a state are under
regulation of State Government.
 Central Government: Central Government deals with entire county. All rights and
authority to control communities of country totally in the hands of Central Government.

Goods and services
NHS provides primary care, in-patient care, dental care, ophthalmology and long-term
healthcare to the citizen.
Legal structure
The NHS is controlled by the UK government through Department of Healthcare and
Social Care with aim to provide health services to its citizens.
Private Sector company
Private Sector companies are owned and regulated by one or more than one person with
motive to earn profit from citizens (Chang, 2016). In this sector, all decisions and activities are
under the control of its owner who are individuals or group of peoples. The example of private
sector company is Dave.
Business Purpose
The main aim of Dave is to provide best services to customers. Dave maintains its quality
level in proportion to its price distribution.
Types of Private sector organisation
 Multinational or Large corporation: These are the corporations which deal with other
countries in business to purchase or sell its products and services.
 Partnership: It is a firm where two or more than two persons acts like partners in an
organisation (Eling and Schaper, 2017). Partnership is a legal firm where all activities
and profits are shared among the partners as per their share in the company.
 Sole Proprietorship: In this business all activities and decision are taken by an
individual to earn profits by achieving its own targets in firm. It is also known as Sole
trading.
Legal structure
Director is responsible for all the decision made in business, it is legal liability of firm to
repay all liabilities to creditors.
Voluntary sector company
Voluntary sector companies are those which are originated not with the purpose of
earning profits. Non- Profit organisation and trust companies are known as Voluntary sector
company (Erasmus, Strydom and Rudansky-Kloppers, 2016). Its activities leads to the
achievement of objectives for benefit of society. The example of Voluntary sector is Oxfam.