Business and the Business Environment (Unit 1)

Business and the Business
Environment (Unit 1)

Table of Contents
INTRODUCTION...........................................................................................................................3
Different types, size and scope of organisations..............................................................................3
Difference between micro, small and medium sized enterprises and large organisations..........4
Range of legal structures associated with different forms of business........................................5
Interrelationship between different organisational functions and how they are interlinked with
organisational structure and objectives............................................................................................7
The impact macro environment has on business operations............................................................8
The internal strengths and weaknesses of Ikea and their interrelationship with external macro
factors. Understand organisational purposes of business..............................................................11
SWOT Analysis.........................................................................................................................11
TOWS Analysis.........................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business environment is consisting of various factors that has huge impact on the
operations and strategies of the organisation. The environment provides a numerous
opportunities to the business and it is necessary to identify the opportunities to improve the
performance to get success within the business. Business can easily identify opportunities and
overcome from the negative impacts if they are aware of all the factors. Within the environment
This report will cover case study of IKEA stores which is a British multinational conglomerate,
who are operating their business in all over the world. They are selling a product such as home
appliances, home accessories, ready meant furniture, and including home services.
This report will explain the types of businesses including their size and scope. this report will
also discuss about the functions within the organisation and there Enter relationship with each
other. this report will conclude past analysis to identify the factors within the business
environment that affect on the company’s operations (Xu, W., 2019). In the end of this report
will determine the internal weakness and strength of the IKEA Company and their Inter
relationship with micro factors.
Different types, size and scope of organisations
Difference between public, private and voluntary organisations
There are various type of businesses within the business environment who have various
roles and way of doing their work. Each of the organisation have their own purpose and their
type. Here is the purpose and type of organisations.
Public organisation
Public companies are created by the government bodies and when they create a public company
then their main purpose is to provide benefits to the public and local communities. most of the
companies work for the non-profit, but some of them are listed as a public company, but they are
earning profits it serves highly regulated areas such as broadcasting and public transportations.
Public companies mainly work to add value for their customers and create product that could be
helpful for the public and useful as well.

Examples- Sainsbury is the public limited company who are second largest supermarket within
the United Kingdom an having a good reputation within the market.
Private company
Private companies are owned by the individual person or the companies group who share we
spend their own capital investment and also take the benefits and liability. companies who are
registered as the private limited work on the purpose to earn profitability by selling their goods
and products to the customers and customers buy product from them because they want to satisfy
their needs. IKEA is an privately owned company who are operating their business in various
countries and they are selling products such as kitchen appliances, home appliances and
providing home services to their customers. this company was founded by Ingvar Kamprad In
year 1943.
Voluntary companies
The main purpose of the voluntary companies is too provide benefits to the society and the work
for the welfare of society (Collier, N. And et.al., 2018). they focus to provide services and help
to the needy people and their main source of income is donations by the NGOs and government
bodies. Age UK is an registered charity firm Within United Kingdom who are Helping the
people with the old age group and they Run a shop and by selling the clothes they earn money
that is spent on the old age people to help them.
Legal organisation
The legal entity is in Group or the individual that has legal rights and duties related to the
agreements, contracts, obligations, transactions, penalties and sues. This term can be applied to
any kind of organization formally constituted according to the particular set of laws governing
the country. UK environmental law Association. it is in legal body that is authorized to make a
law elated to the environment and implement effectively.
Difference between micro, small and medium sized enterprises and large organisations
Basis of
difference
Micro Small Medium Large
Size smallest in size Small but Big in size and Largest in terms of