Business and the Business Environment

BUSINESS AND THE
BUSINESS ENVIRONMENT

Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Types of company.................................................................................................................3
P 2 Size and scope of different businesses..................................................................................5
LO 2.................................................................................................................................................6
P 3 Relationship between different organizational functions and how they link to the
objectives and structure of the company.....................................................................................6
LO 3.................................................................................................................................................7
P 4 Impacts that is positive and negative on the macro environment and operations of business
.....................................................................................................................................................7
LO 4.................................................................................................................................................9
P 5 Analysis of the company on the basis of internal and external environment........................9
P 6 Strength and weaknesses that interrelates with macro factors that are external..................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment means all of the internal and external factors that affect how the company
functions including employees, customers, management, supply and demand and business
regulations. An example of a part of a business environment is how well customers' expectations
are met. Tesco, is a British multinational groceries and general merchandise retailer with
headquarters in Welwyn Garden City, Hertfordshire, England, United Kingdom. It is the third-
largest retailer in the world measured by gross revenues and the ninth-largest in the world
measured by revenues. This report contains issues such as Different types and purposes of
Organizations. Size and Scope of range of different types of organizations. Relationship between
different organizational functions and how they link to the objectives and structure of the
company. Impacts that is positive and negative on the macro environment and operations of
business. Analysis of the company on the basis of internal and external environment. Strength
and weaknesses that interrelates with macro factors that is external (Kuula and Haapasalo, 2017).
LO 1
P 1 Types of company
Public Company-
Firms that have categorized themselves as this category of business has to divide their
share in market to general public by which they will turn out to be the shareholders of company.
The motive of people is to invest and get substantial amount of return on it. NHS is a company
that has registered themselves as a public company which gives the power to people to buy or
sell their shares as per their preference. There are certain rules and regulations in order to do that.
First management must make sure that they have a minimum of 7 members and for the
maximum they can take as many as they want which is as per the shares that are listed in the
market. Apart from that they need to invest 5 lacks as paid up capital in market this will give
them the advantage of turning any of their private subsidiary to public. It is important that they
work as per legal guidelines so that they can be allowed to work under public company. They
also need to work on prospectus in order to describe their portfolio to public (Ślusarczyk and UL
HAQUE, 2019).

Private Company-
These firms usually register as individual or partnership entity. Most of the companies are
small but some of them such as Tesco operate on large scale. They started with people and in
these firms the maximum limit is up to 200 people. Even the paid up capital invested is 1 lacks
and they can set it as per the scale of their operations. Being registered as a private business they
are not entitled to distribute their shares in market. Company has maintained a void so that they
can keep their planning and future related decisions safe. Also they do not have to invest their
time on listing their prices on market or raising money through that option. The stores are opened
by the preference and analysis of market (Krajnakova, Navickas and Kontautienė, 2018).
Voluntary Company-
This form of business has a different motive to serve in market which is to cater the needs
of those people who are not privileged enough and do not have the resources to get ample
amount of education. This is done by non profitable organizations and one of these companies is
Oxfam. They began with their work in the year 1942 in Kenya and the executive director of
business is Winnie Byanyima. They have been successful in establishing different NGOs who
looks after these causes and try to reduce the difficulties in the lives of people. The company is
working as per their aim which is to provide everyone with equal rights and opportunities so that
they can remove the difference between poor and less. It is the legal structure of the company
that keeps the trustees of the company in their decision for charities. In order to serve in different
areas and cover more audience they have started working with 20 other companies so that they
can cater the needs of people globally (Popescu and Popescu, 2019).
P 2 Size and scope of different businesses
Size of business determines from where they can reach and provide services to different
people from different areas. Different countries such as Scotland, England and Wales are the
ones that keep on maintaining their operations. Apart from that they are working in North Ireland
to provide the services of social and healthcare department. They started working 73 years ago
during world war II. They scale of employment maintained by them is around 1,70,000 people.
NHS is the most beneficial for UK citizens as they get the treatment or checkup at free of cost.
They just need to cover the expenses for dental care and optician. They get the prescription at no