Understanding the Business Environment | Report

Business and The Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purpose of organisation..........................................................................1
P2 Size and scope of different types of organisation..................................................................3
TASK 2............................................................................................................................................3
P3 Relationship of different organisation functions....................................................................3
TASK 3............................................................................................................................................6
P4 Macro environment positive and negative impact on business operations............................6
TASK 4............................................................................................................................................8
P5 Internal and external analysis of Apple Inc. for identify strength and weakness..................8
P6 Interrelationship of strength and weakness with external macro factors.............................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business Environment refers to a aggregation of all respective individual, institutions and
other elements that may have impact on the enterprise. It can directly affect firm performance,
production, profitability and growth. These types of factors influence all business activities and
functions. Every organisation exchange their goods on the basis of financial and non financial
concepts. In the business firm, there are some factors such as external and internal that involves
customers, employees, supply, demand and many other existing elements which directly or
indirectly affects on company's production and profitability (Armstrong and Taylor, 2014). This
report is based on Apple Inc. which is a multinational organisation. Its headquarter is located in
Cupertino, California. The company design, creates, sale consumer electronics and also provide
online services. They provide products that includes iPhone, tablet and smartphone, iPod media
player to their buyers. It deals with various kind of products or services in market and attracts
large number of customers. The aim of this report is to determine the interrelationship of various
functions or activities of firm in different situational environment. Also evaluate its impacts on
external and internal study of environment.
TASK 1
P1 Different types and purpose of organisation
The organisation profit is based on various business environmental factors which
includes many element that provide high productivity and profitability. There are different types
of firm structures that includes public, private or voluntary sector which are essential for the
society. The major functions of these sectors are discussed as under:
Private sector- It is that enterprise which are run by individual person and group of some
people. They are offers their shares in the market, by this any one can easily purchase the shares
of the company. Those person who buy these share, they get some benefits or rights of particular
firm. These types of organisation play a primary role for development of country by given an
important role in exchange of capital. Private sector may be large or small in size on the basis of
finance and resource amount (Billis, 2010). The most effectual example of this administration
may be sole traders, partnership firm and franchise. They have directly impact their share of
market and increase sale of products or services by using effective marketing strategies.
1