Business and Business Environment

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Different types and purpose of organization...............................................................................3
Size and scope of different type of organization.........................................................................4
TASK 2............................................................................................................................................5
Relationship between different functions of organizational structure........................................5
TASK 3............................................................................................................................................7
Identify negative and positive impact of macro environment.....................................................7
TASK 4............................................................................................................................................8
Determine internal and external macro factors...........................................................................8
Evaluate impact of macro and micro factors upon business decision making............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is defined as the collection of all internal and external factors and
forces which affects the working and operations of company. The present report is based on
“Northern trust investment bank” which is a public company providing their services in US. The
report will outline the different types of organization in accordance with their size, legal structure
and scope. Further the study will also outline relationship between different functions of
organizational structure. Further the analysis of external and internal environment of the
company will take place with help of different models.
MAIN BODY
TASK 1
Different types and purpose of organization.
There are different types of business such as profit and non-profit making business. Profit
making organization has a goal which is to make better profits by providing best quality of
product and services to customers. On the other side, non-profit making organization have
complete focus only on providing better services to customers without any profits margin.
Different types of organisations:
Private organization:
This type of organization is run by the individual people for earning profits. This type of
organization has different types which are as follows: Sole proprietorship is a type of business which is owned by an individual person who is
solely responsible for all profit and loss. (Bashir and Verma, 2017). For example: Ice
cream parlour and Beauty salon are counted into the sole proprietorship business. Partnership firm is a type of company which is formed by two or more people who share
profit and loss and all responsibilities on agreed terms with the aim of earning profit. For
example, Social China is a company founded in partnership by Steve Bartlett and Dom
McGregor. Public limited organization is a type of company which has a separate legal existence and
its shares are sold and traded within the market. For example: John Lewis is best example
of public limited company.

 Private limited company is a type of business which is handled by small group of people
and has some particular objective and working of company is in direction of attaining that
objective. Arcadia group is the best example of private company.
Public sector company:
This is a type of company which is owned by government for providing better services to
the people and society worldwide along with providing better services to customers at the market
place (Belás and Rózsa, 2019). Northern trust investment bank is providing better financial
services to their customers in order to manage their investment and money.
Voluntary sector company:
This is a type of company which include social services and services in order to improve
the society and underprivileged people in society. For instance, OXFAM is an independent
charitable organization which focuses on alleviation of global poverty line.
Size and scope of different type of organization.
As per size and scope of company there are three types of organizations which are small,
medium and large sized organization. Explanation of those are as follows:
Basis Small Medium Large
Meaning This is a type of
business which has the
income of not more
than £6.5 million and
total of balance sheet
of not more than £3.26
million.
This is a type of
business wherein the
turnover of the
company is not more
that 36 million and
balance sheet total of
36 million.
This is a type of
business where the
profit is more than
medium company but
here the number of
employees need to be
500 or more.
Goals To earn profits by
providing services.
To increase
sustainability of
business (Gaganis,
Pasiouras and
Voulgari, 2019).
To provide better
services and offer best
quality of products to
customers against of
money.
Objective To sustain better To increase profit To build best brand