Business and the Business Environment: Organisation Analysis Report

This report provides an overview of the business environment, focusing on the analysis of public, private, and voluntary organizations. It examines the structures, purposes, sizes, and scopes of organizations such as the NHS, Marks & Spencer, and Oxfam. The report explores the relationships between different organizational functions, including marketing, sales, research, and production, and their links to organizational objectives and structures. It discusses how these functions contribute to achieving business goals, enhancing profitability, and ensuring sustainability. The analysis covers legal structures, stakeholder relationships, and the impact of size and scope on business objectives. Furthermore, the report highlights the key stakeholders and business missions of the selected organizations.

Business and the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Overview of different types of organisations and the growth of international business......1
P2 Explain the size and scope of a range of different types of organisations.............................3
TASK 2............................................................................................................................................5
P3 Defined the relationship between different organisational functions and their link to
organisational objectives and structure.......................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment refers to all the internal and external factors which can impact on
the organisational activities. All the factors may or may not be control in the organisation, they
can greatly impact on the performance, growth, profitability and sustainability of the business.
This report is based on public, private, and voluntary organisations which are NHS, Mark &
Spencer and Oxfam. This file will cover about the different types of organisation according to
their purpose, size and scope and their legal structure. Also, the relationship between all the
organisation functions and the advantages and disadvantages of their interrelationship and how
they impact on the organisational objectives and structure.
TASK 1
P1 Overview of different types of organisations and the growth of international business.
There are various type of organisations that is profit, non-profit, and non-governmental
whose structure and purpose is different from each other. The main motive of some businesses
are to earn higher profit and some are operating their activities for accomplishing the social
needs(Savrul, Incekara and Sener, 2014). All the type of organisations with its purpose are
defined below:
Public sector company
This type of organisation are established by governmental authorities for meeting the
needs of social people. Various strategies and plans are formulating by this business with the aim
of enhancing the lifestyle of people without making any kind of profit. The funds for the public
sector is usually collected from taxes, fees, donations etc. and these organisations have right to
sell their share publicly. In this category the taken organisation is National Health organisation
whose purpose and legal structure is described beneath:
Purpose
NHS is established with the purpose of rendering sufficient medical services all over the
UK without earning profit. Along with this, they are trying to remove all the inequalities from
the health services.
Legal Structure
 Central government- This is the foremost legal structure in which all the policies are
made for managing the health services across the nation.
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 State government- In this, the board of members are responsible for regulating the
health care services at state level(Zeng and Duan, 2012).
 Local government- This is the least level of the legal structure in which authorised
persons are taking the responsibilities of maintaining the health services at small scale
like a city or specific area.
As NHS is a public organisation due to which it is operated by the government of the UK. Their
functions are divided into three categories which are primary, secondary or tertiary sector. In
which they are focussing on first discussion with their patients about their problems and then
treated them accordingly. Due to which they are controlled by the central government.
Voluntary Organisation
This kind of organisations are operating their activities for accomplishing the needs of
social people with the aim of enrich and develop the society. The organisations which are
comprised in this category are performing its functions under the tertiary sector because of this
non-profit concept. The taken organisation in this file for this category is Oxfam, which is a
charitable organisation whose main motive is alleviation of worldwide poverty.
Purpose: The main purpose of this organisation is to decrease the poverty, provide them
education and complete their needs.
Legal Structure
 Trustee- This kind of structure refers to the some responsible person who are authorised
by the company for controlling the organisational activities.
 Charity- In this from, funds are arranges by the donors and investors and used in
upliftment of the society(Glova, Sabol and Vajda, 2014).
In the Oxfam, they are following the charity structure as they are established under the
charity Act, 2011.
Private Organisation\ profit organisations
This type of organisations are formed by an individual or a group of people. Private
organisations are working with the motive of earning higher profit by satisfying the needs of the
people. The taken organisation is M&S who is a British multinational retailer and dealing in high
quality clothes, food and home products.
Purpose
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The main purpose of M&S is to earn higher profit and capture huge marketplace by
providing higher quality products.
Legal Structure
 Sole proprietorship- It is the most easiest form of the business as an individual is
responsible for all the profit and losses(IşıK, Jones and Sidorova, 2013).
 Partnership- In this business form, an individual or more than two individuals are
establish a business under an agreement. In the partnership, all the shareholder are liable
for all the profit and loss according to their share.
 Private Limited companies- These companies are formed by an individual or a group of
people for earning higher profits. In the UK for operating the business under the private
Ltd they have to take all the necessary licence from company House UK.
As M&S is leading their business for maximising the profits due to which they are
coming under the private limited company. Their function are coming in the second sector as
they are indulged in the manufacturing.
Analyse how the structure, size and scope of different organisations link to the business
objectives
The structure, size and scope have huge relation to the business objectives as it can be
understand by the above described organisations. All the organisations like private, public and
voluntary organisations are different from each other because of their size, purpose and mission.
As the private organisations are in the both small and large in size with the motive of earning
profit by providing higher quality products and services so that they can accomplish their
objectives easily(Avramenko, 2012). Other, the public organisations are related to that
organisations which are established for serving the society and its called non-profit organisation
due to which they have vast scope in the marketplace. And the voluntary organisation is working
with the motive of upliftment of the society and their size is depend on the social people benefits.
P2 Explain the size and scope of a range of different types of organisations.
Private organisation: A private company is generated under private possession as it is
controlled and operate by an individual and a group of people. The main motive of these
companies is to earn profit by providing the customers various products and services. The private
organisation taken in this file is M&S which has huge different size, scope, vision, objectives
from other public and voluntary organisation which are defined below:.
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Size: As M&S is serving its products and services in various countries due to which they
are able to cover a big marketplace(Rose, Orrenius and Neumann, 2013). They have almost
80,700 employees and approx 959 stores across the world which helps them to get higher
profitability and higher brand value.
Scope: M&S is serving high quality clothes, food and home products. As they are serving
a range of high quality products which helps them to attain more success and growth in the
marketplace.
Vision: The main vision of the M&S that how stores and digital work in a simple,
sustainable, and relevant manner. Also, they are focussing about renew their supply chain and
enhance its online presence so that they will be able to attract customers in their products and
services.
Business objectives: The main objective or mission of the company is to provide higher
quality products to its customers. Their main focus on the rendering high quality products and
speciality food. Moreover, they are focussing on the become a digital first retailer by developing
new apps, automation, and increase its brand chain.
Key stakeholders: M&S have various stakeholder such as employees, customers,
government, community, and many others. They are greatly concerned for their stakeholders as
they for sustaining their business in the marketplace. As they are using various websites,
advertisements, business letters, promotional strategies for their stakeholder so that they able to
easily communicated and maintain their relationship with all the outside and inside stakeholders.
Public organisation: A public organisation is that which is controlled by the government
and responsible for meeting the needs of social people(Rocha, 2012). The main importance of
this kind of organisation is very high as they are working with high transparency and with non-
profit objective. The chosen organisation in this category is NHS which is described below:
Size: NHS is very huge in the size as they have employ almost 1.7 million people in the
32 countries.
Scope: Scope of this organisation is very vast as they are serving in various countries for
providing the medical services to the people(Dima, Grabara and Modrak, 2014).
Vision: The vision of the NHS is to deliver better health, better care, and better value.
Better health can be provide by maximise health care and prevent people from illness. Care can
be deliver by providing infection free facilities with the help of trained and motivated staff. The
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better value can be understand when the public money is spending on the needed and beneficial
aspects.
Business mission: The main objective or mission of the NHS is to provide higher care
and medical facilities to a range of people so that they can live the happier and healthy life.
Key stakeholders: The key stakeholder of the NHS are service users, competitors,
contributors and many others.
Voluntary organisation: The voluntary organisations are those who's main motive is to
enrich or improve society. Mostly they are operating their activities without profit with less
intercession of government. The taken organisation is Oxfam whose size, scope and others
factors are defined below:
Size: Oxfam has employed almost 5300 employees worldwide and working with almost
22000 volunteers. Also, they are working with the 20 independent charitable organisations which
have covered all over the world.
Scope: It has wide scope in the marketplace as they are working for the social needs of
people due to which they are able to attain more attention of the social people. Their main focus
on the removing poverty form the society.
Vision: The vision of the company is only to see the world without poverty. Other, they
want a world where all the people are treated equally and valued and where people can enjoy
their lives and rights and assume their responsibilities(Schaltegger, Lüdeke-Freund and Hansen,
2012).
Business objectives: Objectives of this organisation is to remove the poverty the local
and the global level.
Key Stakeholders: The main stakeholders of Oxfam are customers and suppliers who
can impact their business in an effective manner.
TASK 2
P3 Defined the relationship between different organisational functions and their link to
organisational objectives and structure.
In the organisation all the functions of different departments are related with organisation
goals and structure which are defined below:
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Marketing and sales department: Marketing can be defined by those activities which
are conducted by an organisation to motivate the people to purchase the products and take the
advantage of their services. Marketing department is responsible for searching a target customers
and promoting the products and services in the market. So that the sales department will be able
to sale more products and services to their customers and can earn higher profit and brand value.
If the Marketing department of M&S will plays their responsibilities in and effective manner
then sales department will able to attain more customers attention in its products services which
provide higher benefit to the company(Al-Saleh and Mahroum, 2015). They will also able to
capture a huge marketplace and increase their sustainability which helps them to accomplish
their goals and objectives effectively.
Research and production department: These both department have great relation with
each other and have big impact on the success of the organisation. As the research department is
responsible for searching out the new innovations, customers demands, and market segments
which helps the production department to operate their production activities accordingly. If the
production department of the M&S produce products according to the giving information by
research department then they will be able to get more customers satisfaction, interest and higher
profitability in the marketplace. It will help them to achieve higher profitability and higher
growth so that their goals and objectives of the organisation can be accomplish.
Finance and marketing department: These are the foremost departments of any
organisation as the success of the business depends on it. As the without publicity and
advertisement the sales can not improve same as for the successful marketing it is essential to
have a strong base of finance. Without an appropriate finance company will not able to decide
marketing department goals like sales targets, sales price, cost of products etc. So it is necessary
for the M&S to focus on the healthy relationship between the finance and marketing department
so that they will be able to achieve its pre determined goals and objectives(Sodeyfi, 2016).
Impact of Inter-relations on organisation structure: It has been discussed that all the
departments are interrelated with each other which assist them to achieve its business goals and
objectives easily. As the M&S is multinational company and leading its business in various
nations due to which they are follow the flat structure within the enterprise which helps them to
easily communicate with their employees so that the employee can easily share their ideas,
opinions, conflicts with the top management. It will motivates the employees in an effective
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manner so that they will support the organisation in achieving their goals and objectives by
putting their higher efforts.
Examine the merits and demerits of interrelationships of organisational functions and the impact
on organisational structure
For operating the business activities smoothly it is essential to make a balanced
relationship with all the departments in the organisation. This relationship provide various
advantages and sometimes disadvantage to the company. For example, if the research department
will do better research about the market and customers segments then the M&S will able to
produce according to the customers demands and needs which results higher profitability and
success(Luo and Zhao, 2013). Other, if the research department will take higher time in their
researching activities then production department have to suffer the delay in their production
process due to which they are not able to meet the demands of its customers on time and can not
satisfy the customers needs. It will also impact on their structure as because of the delay in their
production process their employees motivation will be decrease which will great impact on their
organisational structure.
Provide a critical analysis of the complexities of different types of business structures
As the M&S is following the flat structure in their business activities which has sometime
positive impact on their organisational functions or sometimes negative. By following the flat
structure in their organisations they can boost the morale of the employees and motivates them to
do more efforts in order to achieve the goals and objectives. As because in this structure they are
including all the employees in the decision making and directly contacted with their employees
due to which they have to face the delay in their decision making process which hinder the
effectively conduct their business operations(Avramenko, 2012).
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CONCLUSION
From this file, it can be understood that analyse the business environment is essential for
the organisation as it has great impact on the organisational activities. There are various
organisations like private, public, and voluntary, these all are different from each other in every
aspect. These all are conducting their activities with different purpose, vision and mission. While
operating their activities they have to concern for their key stakeholder which has great impact
on the business. Along with this, the relationship between all the departments within the
organisation will be stated by this file.
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REFERENCES
Books & Journal
Al-Saleh, Y. and Mahroum, S., 2015. A critical review of the interplay between policy
instruments and business models: greening the built environment a case in point.
Journal of Cleaner Production. 109. pp.260-270.
Avramenko, A., 2012. Enhancing students' employability through business simulation.
Education+ Training. 54(5). pp.355-367.
Dima, I. C., Grabara, J. and Modrak, V., 2014. Sustainable logistics and business
competitiveness. International Letters of Social and Humanistic Sciences. 15 (2).
pp.148-156.
Glova, J., Sabol, T. and Vajda, V., 2014. Business models for the internet of things environment.
Procedia Economics and Finance. 15. pp.1122-1129.
IşıK, Ö., Jones, M. C. and Sidorova, A., 2013. Business intelligence success: The roles of BI
capabilities and decision environments. Information & Management. 50(1). pp.13-23.
Luo, Y. and Zhao, H., 2013. Doing business in a transitional society: Economic environment and
relational political strategy for multinationals. Business & Society. 52(3). pp.515-549.
Rocha, E. A. G., 2012. The impact of the business environment on the size of the micro, small
and medium enterprise sector; preliminary findings from a cross-country comparison.
Procedia Economics and Finance. 4. pp.335-349.
Rose, L. M., Orrenius, U. E. and Neumann, W. P., 2013. Work environment and the bottom line:
Survey of tools relating work environment to business results. Human Factors and
Ergonomics in Manufacturing & Service Industries. 23(5). pp.368-381.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150.
pp.35-45.
Schaltegger, S., Lüdeke-Freund, F. and Hansen, E. G., 2012. Business cases for sustainability:
the role of business model innovation for corporate sustainability. International Journal
of Innovation and Sustainable Development. 6(2). pp.95-119.
Sodeyfi, S., 2016. Review of literature on the nexus of financial leverage, product quality, &
business conditions. Journal of Economic & Management Perspectives. 10(2). pp.146-
150.
Zeng, L., Li, L. and Duan, L., 2012. Business intelligence in enterprise computing environment.
Information Technology and Management. 13(4). pp.297-310.
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