Business and the Business Environment

BUSINESS AND THE BUSINESS
ENVIRONMENT

CONTENTS
INTRODUCTION .........................................................................................................4
Lo-1 .............................................................................................................................5
P 1Different types of organizations and their purpose............................................5
P 2 Explaining the size, scope and legal structures of different types of
organizations............................................................................................................6
LO – 2 ..........................................................................................................................8
P 3Relationship amid different organizational functions and their link to the
objectives and structures of the firm.........................................................................8
LO – 3 ........................................................................................................................11
P 4 Determining the positive and negative influence of macro factors on the
business operation of Virgin money ......................................................................11
LO-4 ..........................................................................................................................13
P 5 Carrying out internal and external analysis of Virgin money............................13
P 6 Explaining inter-relationship of strengths and weaknesses with the external
macro factors..........................................................................................................13
CONCLUSION .........................................................................................................15

INTRODUCTION
Business organization is defined as an entity with a main aim to perform
commercial enterprise through offering products and services for meeting out the
demands of the customers. Environment in which the business operates is very
complex and it is related with both internal and external factors that impacts the
functioning and operation of the business. These factors typically include employees,
customers, supply, stakeholders, demand, laws, government and many other that
influence the decisions of the business. Thus, it is quite necessary to analyse all
these factors for successful running of the corporation (Hamilton and Webster,
2015). The current research report also aims to comprehend the functions of
different types of organizations with wider business environment. Focus will be made
on varied organizations, there sizes and scope being linked to the products and
services and business objectives of the organizations. Further, analysis of the inter-
relationship of different organizational functions linking to their business structure will
be carried out. The final part of the study will throw light on both positive and
negative impact of macro environment on the business operations and will determine
the internal strengths and weaknesses and their relationship with the external macro
factors.

Lo-1
P 1Different types of organizations and their purpose
There are various types of organizations which have purpose to operates a
business in effective manner. Those sets of purpose are help to make positive image
at workplace (Caprotti, 2012). There are various kinds of Organization whose
business and reason for existing are different from one another and are being
clarified underneath:
• Public organization – These are not-for-profit government owned firms which offers
services mainly for some or the other social purpose. The main purpose of public
sector enterprise is to look into the delivery of public merchandise and legislative,
administrations services including military, police, public frameworks, travels and
many others for the advancement of the general public. Example, Virgin group.
• Private organization – Private enterprises incorporate for-profit associations that can
be owned either by non-governmental organizational or by other small number of
people and groups. They are considered as fundamental piece of the nation's
monetary framework which is possessed by private people as well as groups
consequently carrying out activities for creating more turnover (Besley, 2015). Other
than this, they are likewise regarded as a significant basis of development and
advancement and creator of per capita income for the nation and in this way,
enlarging the gross domestic product of the country. Example, TESCO.
• Voluntary organization – Focusing on the voluntary organizations, they incorporate
those bodies that preforms social actions attempted particularly by some
predetermined not for revenue driven associations which are additionally non-
governmental in nature. As voluntary organizations involves different associations,
there sole reason lie in giving advantages and improving the general public with no
motive to earn profit. They further make social wealth and helps in the improving the
general public. Example, Cancer Research UK (Cancer Research UK Centre, 2018).
• Profit organization – These associations incorporate organization, sole trader
organizations and the principle point of these organizations is to build their income.
Profits is being viewed as a significant hotspot for their survival. Benefits earned by
these associations are invested into those undertakings which can give them further
rewards and welfare of the society is the minimal need for these organizations.