Business & the Business Environment

Business & the Business
Environment

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
LO1 .................................................................................................................................................3
P1 Different types of organization ..............................................................................................3
P2 Size and scope of organization...............................................................................................5
LO2..................................................................................................................................................7
P3 Various function within organization.....................................................................................7
LO3..................................................................................................................................................9
P4 Impact of macro environment factors over business operations ...........................................9
P5 SWOT Analysis....................................................................................................................12
P6 Interrelation of company's strengths and weakness with macro environment factors.........16
CONCLUSION..............................................................................................................................17
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment comprises various external and internal factors associated with the
corporate organization. Factors like employees, suppliers, customer's, government and various
other factors play an important role in business-environment.
Henceforth, this report will emphasis over different sectors in context to corporate
organizations. Aspect related to size and scope of the corporate organisations will also be
summarized in this report. This report will also focus over different functions associated with
corporate organizations that guides the company to achieve its business objectives. Factors
related to the macro environment will also be evaluated in this report that carry the crucial
implications over operations of business organizations. SWOT analysis is also conducted in this
report. Furthermore, this report will also focus over all the factors that interconnect strengths and
weaknesses of corporate organization with external macro environment factors.
LO1
P1 Different types of organization
Organisation is an entity that is established by individual for earning profit by offering
varieties of product and services to customers. Organisation is classified on basis of different
types and purposes of its in the market such as public, private and voluntary sectors. These all
company operates its business with different purpose and objectives of company thus it follows
specific legal structures. Different types of company and their legal structure is as follows:
Public-company: It is company that can issue its share to public and minimum seven members
are required with minimum capital of five lacks. Various document needed to be filled by public
company for its operation such as memorandum of association, article of association and
prospectus to raise fund from public (Masters, Kendrick-Jones and Buss, 2016). Public limited
name must be there at end of company name and have minimum 3 directors. One third of
directors of public company can perform their function independently in case it is listed on stock
exchange. It purposes and objective is to provide social product and services at reasonable or
affordable cost to public. BBC is a British public company that provide broadcasting services to
public. It employees 35,402 employees in terms of part-time, flexible and fixed contract. As per
2019 estimated revenue of company was £4.889 billion and its total assets valued £1.172 billion
(BBC., 2019.). Thus, it is large organization with number of employees operating its function to
provide broadcasting services to customer. Non government organisation is an example of public

company as it is share owned by public and it operates its function for providing social benefit to
people and shareholder of company. BBC by providing broadcasting services to public helps in
creating awareness among people about recent trends and major issues at reasonable rates.
Company distribute its profit earned among the shareholder of the company thus it operates its
function to maximise shareholder funds and for upliftment of living standard of people living in
the society.
Private company: Such types of company most operates their business for earning profit by
selling qualitative products and services to customers. It cannot issue its share to public and
generally operated and owned by individual or sole proprietorship or in partnership to bear risk
and reward of company. It has minimum 2 and maximum 200 members and paid up capital of
private company is 1 lack. Company fulfil its capital through borrowing from angel investors
financial institution and banks. As angel investor provide guidance due to immerses knowledge
and experience of them in the industry that helps in gaining competitive advantages. Travelodege
is a private company in UK that is operating its business in hotels and hospitality sector to utilize
people leisure time and money effectively. Company is well-known from its brand name as
Travelodge across UK with 579 hotels, 11000 employees and generate revenue approx £637.1 m
in 2018 (Travelodge UK, 2019). Thus, it can be stated that private company are established to
maximise its profitability and market share by offering qualitative services to customers. Profit
organisation come under private company as they are established to earn maximum profitability
by offering qualitative products and services to customers. Travelodege by providing world-class
facilities, services and exclusive accommodation provide comfort to customers at affordable
rates and convenient location. Therefore, company purpose is to maximise its market share and
profitability in hospitality industry by satisfied needs of customers beyond their expectancy.
Voluntary Company: It includes all such organisation that are run and operated by member of
charity and its purpose is to provide benefits to people living in the society by enhancing their
living standard. Government interventions is limited in such organisation as there purpose of
establishment is to provide social benefit to people. Thus, such firms are not established for
earning profit rather they operate to provide services to address social issue. British Red Cross is
a registered charity company that was founded in 1870 in UK and has more than 3500 staffs and
32,500 volunteers (British Red Cross. 2019). Its purpose is to provide Humanitarian aid to
people in crises both in UK and overseas. Thus, its mission is to empower humanity so that