Different kinds of Organisation with purpose and legal structure

This document explores the different kinds of organizations, their purpose, and legal structure. It provides an understanding of the size and scope of different types of organizations, including private, public, and voluntary sectors. The document focuses on Jaguar Automotive Plc, Crown Commercial Services, and Cancer Research UK as examples of these organizations.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different kinds of Organisation with purpose and legal structure.........................................1
P2 Size and scope of different types of organisation..................................................................4
TASK3.............................................................................................................................................7
P3 Various organisational function. ...........................................................................................7
TASK 4............................................................................................................................................8
P4 & M3 Analyse the positive and negative impacts of macro-environment upon business
operations....................................................................................................................................8
P5 SWOT analysis....................................................................................................................11
TASK 4 .........................................................................................................................................12
P6 Interrelation of strength and weakness with external factors...............................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business Environment define as number of factors that influence core competencies of
organisations that in turn establish and sustain better customer relationships. In general, it is total
of various physical as well as social forces which are undertaken by firm's management in
decision-making process of organisation. There are three type of environment exists namely
internal, micro and macro(external). Analysis of business environment is useful with purpose of
understanding social and cultural changes (Business Environment, 2020). Jaguar Land Rover is
one of biggest Automotive multinational organisation and has holding enterprise of Jaguar Land
Rover limited. Organisation has its headquarters in Coventry, UK and it is a subsidiary of Tata
Motors. Company deals in manufacturing, designing, developing of luxury and deluxe vehicles
under brand name of JAGUAR and Land Rover. It has product portfolio of Luxury auto-mobiles
along with Sport Utility vehicles. This research assignment explores various areas of business
environment which affect decisions and working of following organisation. Moreover, it
contains information regarding different kind of organisations their purpose and structure.
Comparison between organisational functions and their link with business objectives. Futher,
negative and positive impact of micro and macro environment.
TASK 1
P1 Different kinds of Organisation with purpose and legal structure.
There are various number of sectors in which business enterprises are operating their
working operations and functions. Each sector has its own purpose, policies, objectives criteria,
culture as well as legal structure. Many organisations come under these sectors and that can be
understand by thorough study of different kind of organisation (Quinlan and et. al., 2019).
1. Private Organisation: this kind of sector refers to any type of partnership, corporations,
agencies which is not regulated by either public or profit body. This sector involve all
kind of business entities that has sole purpose of earning profits. Private organisations are
self sustained and build up on federal property by owners who are not a part of federal
government body. Private sectors are govern and regulated by persons or entities that are
run for profit maximisation. For instance, former type of Jaguar is private held company
which deals in manufacturing of lavish and high profiled cars and serves the same
worldwide.
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Purpose: sole motive of private sector is to optimize higher profits from markets. Individual who
operates in such sector are price taker through which firm can decide and charge their own prices
for goods. Main objective of Jaguar is to provide lavish experienced to its customers to gain
higher profits.
Legal structure of Private sectors.
 Sole proprietors are those individuals who owns or run single person business commonly
known as sole traders. In such business, few amount of funds are required to start-up.
These kind of traders has to bear unlimited liability for debts also there is no legal
separation in between of business and owners. Furthermore, sole traders has full control
over its business decisions and has entire right on earned profits and revenue. (Gaganis,
Pasiouras and Voulgari, 2019).
 Partnerships categorised as an association of different partners or individuals who
together run and regulate functions of business. To participate in a partnership deed there
must be minimum two or maximum twenty partners required. In such structure, each
partner is accountable for debts and bear risk equally. All rights are equally divided in
partners so they are eligible to participate in decision making process. As well as profits
and revenue are equally enjoyed by each partner.
 Corporations are refers as limited liability organisations as these has common
organisational structure that secure common assets and identify liability in order to
establish an enterprise as separate entity without connection with persons. In simple
words, it means overall responsibilities and risks is bear by companies. These
corporations are known as joint stock company which as separate legal identity from its
owners.
Jaguar Automotive Plc come under corporation legal structure as it has separate legal entity with
sole purpose of earning higher profits.
2. Public sectors: these sector of economy is comprised of all different categories of
government enterprises excluding private owned companies (Wickramasekera,
MacKenzie and Gordan, 2019). These sector provides a wide range of governmental
services which involve infrastructure, transportation facilities, public education, health
care, military etc. these are known as state sectors which deals in public services as well
as companies. This particular sector is owned and run under ownership of government. In
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UK, Crown Commercial Service is a government owned organisation which is
accountable for managing purchasing of common goods and services in order to raise
savings for taxpaying through centralizing procuring requirements.
Purpose: sole motive of public sector is to provide quality services and goods to public and
handle out all public related issues. Crown Commercial Services is established under
Government Trading Funds Act 1973, with motive of professional procurement services in order
to enhance value for money in commercial activities.
Legal structure of Public sector.
 Local government categorised as type of public administration that exists at lower stage
of management within following state of country. It has a power to assess as well as
apply corrective measure for restricted area within entire state. It is refer as subdivision of
political unit which regulate specific local area.
 State government refers as government of country which is sub category of federal or
central government which regulate and take decisions for entire state. It makes laws and
implement same within specific state. State government are accountable for governing
trade within state boarders as well as identify problems related to particular region (Bill,
Feurer and Klarmann, 2020).
 Central government define as political authority which run as well as regulate entire
nation. It refers to overall federal system of country that enjoys separate powers at
different levels delegated by its state members. It has authority to control state and local
government of country. Crown Commercial Services come under this section as it serves
its services within entire nation.
3. Voluntary sectors refers to those organisations which encompasses products and services
in order to provide benefits and enhance society without earning profits. These sectors
has no or little interference of government. It also known as civil sector which perform a
duty of social tasks carried out by non profit organisations. Cancer Research in UK is an
charitable organisation which perform different research campaigns and generate funds
for cancer patients (Zhang, Daim and Zhang,2019).
Purpose of voluntary sector is to provide welfare services in order to enrich society as whole.
Sole purpose of Cancer Research UK is to reduce number of deaths from cancers.
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Legal structure of Voluntary Sectors.
 Trusts are categorised as that structure in which different individuals known as trustee
undertaken various business tasks. These are organisation owned by persons who
administers financial assets and resources on behalf of other persons. Cancer Research
UK is come under Charitable type of organisation (Mawejjeand Sebudde, 2019).
 Unincorporated Associations are those business enterprises that are established through
agreement held between committee of individual who come under one roof with purpose
of social welfare without earning personal profit or benefits.
Basis Private Sector Public Sector Voluntary Sector
Purpose Sole purpose of this sector
is to earn high profits.
Aim of public sector is to
offer quality services in
public welfare.
Motive of this sector is
to perform social
activities in order to
provide benefits and
enrich entire nations.
Legal Structure It include sole
proprietors,private limited
corporations and
Partnership firms.
Public sector is legally
divided in three structure
local, state and central
government.
This involve charitable
trusts, unincorporated
associations.
Government
interference
It has zero or limited
intervention of
government.
This sector is fully
controlled and regulated
by government of nation.
There is moderate
level of inference.
Members It required minimum two
members and maximum
limit is 200.
It required minimal 2
individual and maximum
no limit.
It required minimum
10 individual and
maximum unlimited.
P2 Size and scope of different types of organisation.
Private organisations are those who operates for attaining maximum sales and profits.
These are purely profit earning business organisation. These are run and regulate through
individuals as well as groups in order to seek high return of profits. These organisations are free
from government control (Nam, Lee and Lee,2019). Jaguar Automotive Plc is huge
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multinational corporation which deals in processing and selling of luxury auto-mobiles to its
target market. Company designs and develop high featured cars for its high class standard
customers. It is build upon two iconic British Brands Land Rover which world's leading
manufacture of premium vehicles and other one is Jaguar which produce luxury sports saloon
and cars (Crudu, 2019).
 Background: jaguar automotive is a subsidiary of Indian automotive organisation TATA
Motors. Company was founded twelve years ago in year of 2008. In 2013, operations of
Jaguar Cars limited were combined with Jaguar Land Rover Ltd. They together known as
Jaguar Land Rover Automotive PLC. Products of organisation are common under two
categories JAGUAR and LAND ROVER. Jaguar products are XE(compact executive
car), XF(executive car & estate), XJ(full size luxury car), F-type(Sports car)etc. Under
Land rover range there are Discovery sports car, Defender, Range Rover Evoque.
 Mission of Jaguar is “to be best in automotive industry in order to provide high class
customer experience through high great quality cars”.
 Vision of Jaguar is “to create sustainable and smart mobility world in which everyone
can live safer and better lives together”.
 Size: Jaguar is large organisation and serves its products worldwide. It has around
43000+ number of employees with four subsidiaries. Company production output is
approx 430000+ of land rover and 170000+ units of jaguar (Brenstein, Electronic Credit
Systems Corp, 2019).
 Objectives of Jaguar is “to earn higher profits and sustain its competitive advantage by
offering premium all-wheel-drive luxury and sports vehicles to increase customer
excellence”.
 Structure: Jaguar Land Rover Plc make use of Functional organisational structure.
Public Organisations are those which are run as well as owned by local, state and
central government. Sole purpose of this organisation is to provide products and services in
welfare of public. These are similar to voluntary organisation as these do not work for attaining
profits or revenue (Zhou and Wen, 2020)(Al Fallah, 2019). Crown Commercial Services (CCS)
consider as executive and fund trading organisation which is governed by Cabinet office of UK
Government. CCS is work for administering procurement of normal goods and services and
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centralizing buying requirements in order to increase savings of taxpayer. Moreover, it lead
procurement policies on account of government.
 Background: Crown Commercial Services was established under name of Buying
Agency in 1991. In 2000, it became a part of Office of Government Commerce (OGC).
It operates its function under Government Trading Funds Act 1973. In 2010,
organisation join hands with Efficiency and Reform Group within Cabinet Office along
with OGC. Company provides wide range of common products and services under
various categories such as Buildings, Corporate Solutions, People, Technology.
 Mission of CCS is “to accomplish maximum benefits for both central government as
well as public sector”.
 Vision of CCS is “to offer premium commercial solutions in order to procurement of
common products and services to entire UK public”.
 Size: CCS provide wide range of services and work with different sectors which include
local government, health&care sectors, Universities and colleges, schools and
academics, charities, housing association, police and emergency services (Cravo and
Piza, 2019).
 Objectives of CCS “to help out UK public in saving money while purchasing common
goods and services”.
 Structure: All policies and rules are regulated and formulated by central government of
UK.
Voluntary organisation refers to group or union of people who work for a common
interest in order to accomplish a specific purpose. This is third sector of economy which work
for social welfare rather than profit maximisation (Hamilton and Webster, 2018). Cancer
Research UK is one of flourish charitable organisation which work for cancer research and
spreading awareness regarding same. Sole motive of this organisation is to eliminate ratio of
cancer patients deaths. It organises different events, research in order to raise funds for victims.
 Background: organisation was renamed as Cancer Research Fund in February, 2002.
earlier it was known as Imperial Cancer Research Fund. In twenty years, organisation
become one of leading cancer research charities. Organisation is mainly emphasize on
cancer research and health policies.
 Mission of Cancer Research UK is “to prevent, monitor and cure through research”.
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 Vision of Cancer Research UK is “to be pioneer at research work into prevention,
diagnosis and treatment of cancer”.
 Size: organisation has approx 3000+ number of employees and around 40000+
volunteers.
 Objectives of firm is “to help more and more cancer victims and spread awareness”.
 Structures: Cancer Research UK make use of functional organisational structure.
Basis Micro size
enterprise
Small size
enterprise
Medium size
enterprise
Meaning It refers to that
business enterprise
which sells goods
and services to the
customers on the
local level and opens
their outlet in the
local area.
It is almost similar to
the micro enterprise
which sells products
and services to their
customers having a
little more capital as
compare to micro
enterprise.
It refers to enterprise
that maintains assets,
capital and
employees on some
extent.
Size The size of the micro
enterprise is
containing less than
10 employees.
The size of the small
enterprise is that it
has minimum 50
employees not more
than this.
The size of the
business is mot more
250 employees who
are working in the
organisation.
Scope The scope of this
type of enterprise is
not big as they are
geographically
restricted.
The scope of this
type of business is
sustaining in the
marketplace for
profit earning.
The scope is wide as
compare to other two
types that shows their
presence in various
states and nearby
countries.
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TASK3
P3 Various organisational function.
Organisational functions define as process of different set of activities which are
undertaken by company for purpose of attaining mission goals. These functions are categorised
under six sub functions which involve Finance, Marketing, Human resource, Production, R&D
and Administration. Every function has its own pros and cons also these are interconnected with
each other that can be understood by following interrelations (Wood, and Logsdon, 2017).
 Production and Finance: these two pair are interlinked with one another as production
function perform all those activities which are related to designing and developing new
product or modifying existing one. While finance department focuses on preparing and
sanctioning budget for other activities also it keeps a record of inflow and cash-flow of
funds. These are interlinked with each other as for manufacturing any product it requires
high-tech machines, equipment, tools, raw material for which financial budget is needed.
These budgets and funds are approved by finance department. In context with Jaguar, it
is a multinational enterprise which manufacture luxurious vehicles for it require budget
for procuring raw materials, machines. Production team must determine amount of funds
it required so that it can communicate about same to finance department (Gebauer,
Haldimann and Saul, 2017).
 Marketing and R&D: the pair of these two are highly interrelated with each other cause
both are involve in research projects and campaigns. Marketing department perform
various activities related to promoting and communicating related to its product and
services to attract target audience and increase its sales volume. Whereas, R&D
department perform different course of actions which provide answers to various
questions like which marketing tool is more effective, what are current trends and
changes are prevailing in market, what type of packaging is going to be used? Etc. both
are connected because marketer requires to communicate with research department in
order to understand taste and preferences of customers, competitors strategies, prevailing
technology in order to formulate effective marketing mix strategy. Jaguar is world
known organisation so with help of powerful combination of research and marketing
strategy company can sustain its competitive edge and be pioneer in automotive industry.
Advantage of interrelationships between the departments
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The major advantage of the interrelationship is that it’s helps in encouraging the
creativity and improves the productivity within the organisation. It also helps in maintaining the
employee relations and helps in reducing the employee turnover. Because of interrelationship
between the departments work can be done ion an effective way and done quicker also. this
interrelationship also helps in achieving the competitive advantage in the marketplace and also
helps in longer sustain ability of the firm.
Disadvantage of interrelationship between the departments
By interrelationship between the various departments it will create the conflicts
sometimes and shows the dominancy factor by the one. In this marketing manager is depends on
the finance manger in a way that when the budget is not passed by the finance manager
production manager cannot work properly and start production and if research and development
department cannot research the market and not give the information to the marketing manager
than they cannot achieve the target of attracting and satisfying the customers. it amy crete delay
in work and because of this conflict may arise.
Organisation structure refers to an alignment of various activities and actions that are
perform by individuals who are positioned at each level of structure. This is a system which
justify how flow of information will be take place within an organisation. There are number of
structure undertaken by enterprises (Gaganis, Pasiouras and Voulgari, 2019).
Functional organisational structure refers to division of organisation in separate
departments on basis of functions and roles. Each department is regulated by functional manager
and its team is formulated as per their role. Functional managers have full knowledge and
experience of their subject role. Organisational chart of this structure exhibits role hierarchy
which includes CEO, CFO, finance department, sales department, HR department so on. In case
of Jaguar Land Rover, organisation is presently using functional structure cause it is large in size
and work with huge workforce. This structure enables firm to achieve its business objectives as it
follows systematic procedures and policies.
Divisional organisation defines arrangement in human resource are segmented into
various sections or areas. Each area contains its own functions, product/service as well as
market. In such structure, each member has some kind of authority to complete respective
operations (Eling and Schaper, 2017). This organisation structure helps in achieving the
objectives of the firms in this work can be assigned in small groups so that it can be done very
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easily and effectively. The main aim of trhe firm is to achieve the objectives for this Jaguar may
use this structure in their firm so that the workers does not feel any burden and it also imporves
the employees performance that helps in achieving the organisational objectives.
TASK 4
P4 & M3 Analyse the positive and negative impacts of macro-environment upon business
operations
Macro- environment
It refers to that state that consists of overall environment and in the economy as a whole
rather than particular place or region. It includes various trends like inflation, gross domestic
product, employment, monetary and fiscal policy etc. All the factors that are related to external
environment of a company is resist under macro- environment. It gives opportunities and threats
to the company in many ways. In context of jaguar, manager apply PESTLE to examine the
opportunities and threats for a company that are as follows-
PESTLE Analysis Political factor- In this factor, many specialist assumes that a potentially weakening
power of the Europe once the United kingdom to be its member . After Brexit occur in
country affect the economy of the UK but it itself gain more political freedom but
separation from EU might harder for other countries to make friendly relation with UK.
In context of Jaguar, manager plan to expand their manufacturing factory in the country.
Fluctuation in tax rate on selling the car by the government will affect the decision
making. Fuel and environment tax for making the vehicles more efficiently create a
impact on jaguar car producing and sales adversely and it also affects its selling power
within the country. (Hamad, H., Elbeltagi, I. and El‐Gohary, H., 2018).
Positive impact- because of gaining more political stability in the majority of UK Market, help
the jaguar to garb more and more opportunities and find new ways to earn profits within the
company itself. And because of increased support of government for automation affect the
decision making of the company in a positive way.
Negative impact- Due to Brexit occur in the UK, this will affect the sale of car in Jaguar in other
European countries and also affect the supply chain and manufacturing of car.
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 Economic factor – When decision related to leave the European Union announced, then
every people and businessman thinks how they and economy would be affected. Due to
this cash payment in UK is minimised this will affect the sales of many companies. In
context of jaguar, spending of government affect the manufacturing & development and
payment process. it will affect the company in two ways in positive and negative ways
and it can be shown below.
Positive impact- if the economic condition of the country is stable and the income of the people
are also good than it will appreciate the sales and production function of car in jaguar.
Negative impact- because of reducing the investment of the government of country in the car
manufacturing company jaguar and less borrowing of amount affect the development of
company in a negative way (Crav oand Piza, 2019). Social factor- Because of changing fashion of community can affect the business. It
represents the norms, customs, value of population, demographic characteristics within
an organisation operates. It includes population, age, distribution, attitudes, health,
cultural barriers etc. For example - In context of jaguar, manager mainly focus on the
social welfare and aware about the religious values and norms of a human being living in
a particular region. Like muslin workers have some relaxation at the time of prayer and
Christian employees are not require to work on Sunday. Manager follow proper ethics
and ensure the successful trade between the buyer and seller. this will poasitively affect
the company as there employees are happy and satisfied with their working environment
and give their best. (Gromoff, Bilinkis and Kazantsev,2017).
Positive impact- because of increasing population of the country affect the jaguar sales and it
earns more profits and revenue. And the manager of company should properly follow the ethics
and provide healthy environment to their employees so they work productively and efficiently it
will increase the sales and production of the company very well.
Negative impact- If the company does not follow the proper rules and regulation and nor satisfy
the customer demand it will affect the firm sales and revenue and it also affect the growth and
market share of the jaguar. Technological factor- These factor shows the innovation in technology and UK is one of
the major technology user in all over the world. It includes automation, research and
development activity, level of creation, and awareness of technology that a market
11

possesses. For example - Jaguar is the company that is known for innovation in its car
design and production process. Company provide the light weight car that is more
efficient by using aluminium technology. They use the resources in a very optimum way
that will save time and cost of the company. it can be imp[act in a great way as they
minimum the production cost that means they earn more profit margin.
Positive impact- Jaguar rapidly adopting the auto mobile technology this will increasing the sales
and brand image of the company. They launch light weight cars this will attract the more and
more customers in a market place (Hamilton and Webster, 2018).
Negative impact- in context of jaguar, many competitors copy the idea of using technology in
manufacturing the cars by their own names because they patent the right of using, producing it. It
will affect the revenue and market share of the organisation. Legal factor- In context of jaguar, manager follows proper legal laws related to their
employees so they work very effectively and productively. Here. Leaders follows
employment laws so they fairly pay every staff members according to their work. This
factor affects the company in two ways that can be shown below.
positive impact- manager of jaguar follows a proper legal laws and regulation that was stated by
government to successful operates their business in a long term.
Negative impact- if the jaguar does not follow proper government stated rules it will affect the
image of the company and also affect the sales and growth of firm. Environmental factor- In this factor, jaguar execute various legislations to ensure the
optimum emission and wastage of resources. For this manager of make a proper plan to
create a fuel efficient car design that does not harm the environment by using recyclable
materials and aluminium. It generates more profit margins.
Positive factor- New design fuel efficient car does not affect the community and sales of jaguar.
Negative factor- If the manager of jaguar does not follow the rules relating to safety of
environment than it will affect the profit and sales of company (Woodand Logsdon, 2017).
P5 SWOT analysis
Jaguar is world's largest multinational organisation which manufacture ultra premium
cars that known for its luxurious, deluxe as well as exclusive piece of engineering. Company has
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certain combination of strength, weakness, opportunities and threats. This can be understood by
following matrix.
Strength Weaknesses
 Experienced employees strength
 spends more on R & D as well as on
innovation that will increase sales.
 Company offers high product quality
with rich culture identity.
 Enjoys strong global brand value.
 Less variety of products
 problem in design from the customers.
 Company deals in few models which
may reduce number of potential
customers.
Opportunities Threats
 Targeting the trending potential
markets like china and India
 making and moving a step toward
hybrid cars.
 Jaguar can manufacture ozone-friendly
vehicles in order to raise its goodwill.
 Acquisition of new markets with
purpose of increasing customer base
and sales (Eling and Schaper,2017).
 Increasing cost of manufacturing
 instability in economic condition of
country.
 Changing policies and legal laws in UK
can be a threat for jaguar growth.
TASK 4
P6 Interrelation of strength and weakness with external factors.
 Political: these factors are favourable for Jaguar as in UK, there is political stability
which enhance strengths of company. Stable political environment enables firm to
expand its market share and upgrade its distribution channels with better polices and
strategies. Due to Brexit, it may decrease profitability of firm which act as a weakness
and because of this company can face the problem of sustainability. in this spending
power of the consumer also affected as they cannot spend more due to this there
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proficiency affect in a negative way. this factor may influence and create a problem in
making strategic decisions.
 Economical: these factors act as strength if economic conditions are optimal for
company through which firm can expand its brand image in other areas also.it also
attracts the large customer base that helps in earning profits. Weakness of firm due to this
factor is that it may reduce its sales volume and decrease its productivity. due to this sales
of the firm may affect and its also influence to take strong and smart decisions that helps
in overcome this issue. (Gebauer, Haldimann and Saul, 2017).
 Social: these factors are favourable in strengthening power of jaguar cause it has popular
brand image with powerful luxury products which admire by loyal customers. But it may
create weakness for firm as company deals in few variety of products due to which
customer can switch to other brands.
 Technological: these factors are favourable for jaguar as company use advance version
of hybrid technology to manufacture its cars with high profiled featured. On contrary, it
may create a weakness because company offers only few models as compare to its rivals
which produces different featured models with updated technology.
 Environmental: these factors are optimal for Jaguar profitability as it produces eco
friendly vehicles through which company enables to reduce emission of CO2 and other
pollution related issues. Also, other giant automotive firms are also producing
environmental friendly cars such as FORD. This can act as weakness for firm.
 Legal: stable political environment will leads to stable rules and laws of country this act
as a strength for firm as company can operate its operations smoothly in same legal
environment. But due to Brexit it turn out as weakness for firm since there are chances of
emerging fluctuation in legal laws of UK (Gaganis, Pasiouras and Voulgari,2019).
CONCLUSION
From above research assignment, it can be concluded that business environment is an
essential element business operations and its decisions. It contains various internal as well as
external forces which has negative and positive impact over productivity and profitability of
organisation. Business owners are required to consider these factors thoroughly for purpose of
formulating effective strategies and policies. There are number of methods through which firm
can determine the changes prevailing outside of company such as pestle, SWOT/TWOS.
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Business has various different functions which are interrelated with one another which enables
firm to cultivate healthy and coordinated organisational environment as well as structure.
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