Business and the Business Environment

Business and business
environment

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1Explain different types and purposes of organizations; public, private and voluntary sectors
and legal structures......................................................................................................................1
P2Explain the size and scope of a range of different types of organizations..............................3
TASK 2............................................................................................................................................5
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure.......................................................................................5
TASK 3............................................................................................................................................6
P4: Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................6
TASK 4............................................................................................................................................7
P5 Conduct internal and external analysis of specific organizations in order to identify
strengths and weaknesses............................................................................................................7
P6 Explain how strengths and weaknesses interrelate with external macro factors...................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business is an activity by which the individuals make money by selling products and
services in market. It simply an activity by which an enterprise turn into to profit making firm.
Business environment refers to the collection of internal and external factors that helps business
to grow or impact its growth. The internal factors of business environment is employees, owners,
clients, suppliers, etc. and the external factors are demand, customers, competitors, economic
changes, market trend etc. both the factors can impact the growth and profitability of business.
In this report the North London Chamber of Commerce and Enterprise(Bahoo, Alon, and
Paltrinieri, 2020) ( NLCCE) is mentioned as an public organisation. The Ford UK is selected as
an private organization and The National Trust is selected as voluntary organisation.
In this report various information about business and business environment is explained
such as different type of organisation and their purpose, size and scope of different organisation,
relationship between different organisational function and how they are linked with each other.
Furthermore, it also explained the impact of macro environment on the company, internal and
external analysis of organisation and its strength and weaknesses, at last explain how strength
and weaknesses interrelate with macro environment.
TASK 1
P1Explain different types and purposes of organizations; public, private and voluntary sectors
and legal structures.
An organization is a group of individuals who works for the same purpose and motive. It
can be an charity group, business group, an union or an corporation. Every organisation runs for
different reason and purpose. They can be profitable or non profitable organisation. Below is
explained different types of organisation and their purpose.
Public sector organization: This organization usually owned and operates by the
government for specific reason or purpose. The main motive of these organisations is to provide
services to the citizens. Usually the public sector organisation not run for the profit
maximisation. NLCCE is(Bentley-Goode, Omer, and Twedt, 2019) public sector organization
the main purpose of this organisation is to provide services and welfare to the local citizen of the
country. This organisation provide range of networking events and support survives that make
business enable to grow.
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Purpose: The main purpose of this company is to provide the services to the public and
welfare to the society and improve the living standard of the citizens.
Legal structure:
 Central government: In the public sector organisation they are fully manage and
controlled by the central government. This organizations collect funds in the form of tax
form the local public. In public sector organisation all the firms controlled, organize, and
manges by the central government.
 State government: All the public sector organisation are controlled and operate by the
state government. These organisation gets funds from the state public's tax.
 Local government: in this structure, the company are operates and controlled by the
local authorises such government vendors, municipality, local government etc. these
organization collects funds from the tax payers in local areas.
Privet sector organisation:
This organisations are controlled and run by the individual, there main motive is to
maximise profit and increase their revenues. In this organisation the government does not have
any control they run by their owners. This organisation provide various products and services to
the public in order to make more profit in their firms.
Purpose: the main purpose of these organisations it to provide the better product and
services to the public and make more profit for their firms. The aim of private service
organisations is to earn profit and become leading brand in the market. To enhance and achieve
this objectives most of the privet sector organisation use many technologies and effective
marketing strategies.
Legal structure:
 Sole proprietorship: This types of organisations are controlled and manage by the one
individual with the small amount of investment. This company do not have any control of
legal authorises. The debts and profit of these firms are the responsibility of single
individual. The motive of this organisation is to earn profit and make place in the market .
Partnership: This firms are run by tow or more individuals by making an specific partnership
contract in the company. All the partner (Cristofaro, 2020) of the company are the decision
makers for their organisation and all the profit and liabilities of the company are equally
distributed in all the partners of the company.
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