Business and Business Environment

This assignment focuses on understanding the different types, size, and scope of organizations. It explores the interrelation of various functions of organizations and their link with organizational structure. The positive and negative impacts of the macro environment and the internal strengths and weaknesses of an organization are also discussed. The organizations analyzed include Keepmoat Homes Ltd, GCHQ, and Equal Rights Trust.

Business and business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
LO 1.................................................................................................................................................1
P1) Different types and purpose of organisations..................................................................1
P2) Explanation about the size and scope of different types of organisations.......................4
LO 2.................................................................................................................................................5
P3) Relation between different organisational functions ......................................................5
PART 2............................................................................................................................................7
LO 3 ................................................................................................................................................7
P4) Positive and negative impacts the macro environment....................................................7
LO 4.................................................................................................................................................8
P5) Analysis of internal and external strengths and weakness ..............................................8
P6) Interrelation of strengths and weaknesses with external macro factors .........................9
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Business environment is a very broad concept which is a sum total or a group of all
individuals, institutions and other internal and external forces that have effect and control on a
business enterprise. Overall performance, productivity and success of an organisation depends
greatly on these factors and forces of business environment (Ali, Islam and Rahman, 2019). For
this assignment which is based on business and business environment 3 organisations are
selected from the important sectors of economy of UK. From private sector the chosen
organisation is Keepmoat Homes Ltd, from public sector the enterprise selected is GCHQ
(Government Communication Headquarter) and finally from Voluntary sector the organisation
taken for this report is Equal rights trust. In this assignment the main focus is on understanding
the different types, size and scope of organisation. Beside this, an interrelation of various
function of organisations and its link with organisational structure is also included. Further, the
positive and negative impact of macro environment and internal strength and weaknesses of an
organisation are also form a part of this assignment.
PART 1
LO 1
P1) Different types and purpose of organisations
An organisation is basically an entity or group of individuals that aimed at conducting or
carrying out some commercial activity such as providing goods or services to meet the needs and
satisfaction level of customers. On the basis of their aim and main business practices, control and
purposes these organisation are grouped or divided into three main categorises which are
elaborated below:
Private sector
This sector is also know as citizen sector as organisation under this sector are owned and
managed by private individuals or corporates (Beatty, Samuelson and Abril, 2018). It is that
sector of economy that is run by individuals and limited companies with the main purpose of
earning profit and expansion of business enterprises for having better growth and success.
Legal structure
It mainly represent the business ownership structure or business form. On the basis of
there legal composition the private sector is divided into following 3 types:
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Sole proprietorship- It is the simplest form of an organisation which is operated and
control by single person or private individual (Boone and et.al., 2019). This single person is
wholly responsible for all the debts and risk and enjoy maximum portion of profit and revenue.
In UK, a sole proprietorship required to file timely tax return and also have to follow other
provisions.
Partnership firm- It is basically an organisation that is formed by mutual concern of two
or more private individuals and persons with a main aim of earning profit. In UK, theses private
partnership firms are governed by The partnership act, 1890. Beside this, terms of agreement
between partners and its day to day policy are written in its partnership deed.
Private limited companies- These are the privately owned organisations having a large
number of shareholders or owner where liability of each shareholder is limited to the face value
of its shares (Hamilton and Webster, 2018). After incorporation a company become a separate
legal entity having its own legal existence and its operations are governed and operated by its
AOA(article of association) and MOA(memorandum of association). Beside this, in UK private
limited firms are incorporated and registered under the companies act, 2006 and have to follow
its provisions.
Public sector
This sector is mainly comprised those organisation which are owned and operated by
government and provide a range of basic services to its citizens. The main purpose of public
sector is to provide governmental or basic services which include public transportation,
infrastructure, health care, public education, police and military services, etc.
Legal structure
The legal structure and operation of organisations are controlled by different level of
governments. On the basis of their legal control and composition public sector are categories into
following types:
Central government- Theses organisations are under the control of central government
and they are liable for its control and management. Provisions and rules regarding theses
organisations are also formed by central government and beside this finance and staff is also
appointed by authorities of central government.
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State government- These type of organisations are under the control and jurisdiction of
state government where there main operations and incorporation is made. Thus, all the
responsibility of management and finance is also on state government.
Local government- This type of organisations are mainly operated and run by local
government and authority are have work in limited areas and mainly under the jurisdiction of
local municipal corporation or other local authority.
Voluntary organisations
These organisation are also known as non for profit organisation as there main aim is not
profit earning while having a purpose of working for betterment and welfare of society and
serving deprived and vulnerable group of society through fulfilling there basis amenities and
needs (Jabłoński, 2019).
Legal structure
On the basis of its legal structure voluntary sector is divided into following categories or
types:
Trusts – It basically represent a fiduciary relationship among members who work for the
benefits of its members and society and its financial needs are meet by amount of charity and
donations made by its members. These charitable trusts are managed and controlled by there
Trustee.
Company limited by guarantee- It is another important kind of voluntary organisation
which is controlled and managed by its members who are known as guarantor and governed by
MOA and AOA of organisation (Khatun and Miah, 2019). They mainly work for welfare of
society through gathering finance and funds from its members as donations.
On the basis of their size the organisations can again categorises into three types which
are described below:
Micro- These are quite small organisations which have limited operations and require
limited amount of funds for their management. Micro organisation are mainly operates at local
level.
Macro- These organisation are bigger than micro but smaller than large organisation and
mainly focused on maximization and their expansion. Macro organisations mainly works at city
or metropolitan level.
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Large- These organisation are mainly big corporates which require huge workforce and
resources for their management. Large organisation are mainly multinational and operates at
different locations and countries of world (Nikitina and Lapiņa, 2019).
P2) Explanation about the size and scope of different types of organisations
A brief description about size, scope, legal structure, objectives, etc. of organisation from
different sector of economy are provided below:
Keepmoat Homes Ltd (Private sector)
It is a private limited company founded in 1931 by George Bramall and Dick Ogden and
having its headquarter in Doncaster, United kingdom. It is privately owned housebuilding
organisation of United kingdom that provides private homes for sale. The main objective of this
organisations is to provide a high quality, affordable homes across all the location of UK. The
mission of this organisations is “To strengthen their position as a market leader in Infrastructure
Construction & Real Estate Development Projects” (Keepmoat Homes, 2019). The vision
statement of Keepmoat homes Ltd is “to Build communities and transforming lives of its
customers through providing better work experience”. Being a private sector organisations there
main aim and targets are related with its own growth and development trough providing highest
level of customer satisfaction and enhancing shareholder's value, by building and enhancing its
strengths through innovative designs, superlative quality of material, cutting-edge technology,
timely completion and demonstrating the highest standards of workmanship (Ruohomaa and
Salminen, 2019). The advantage of Keepmoat home Ltd is that it provided best quality and high
standard homes to its customer and also facilitate better infrastructure in UK. Keepmoat home
Ltd employs around 1000 to 1500 workers thus, as per it size it is a macro company having
limited stakeholders and customer base.
GCHQ (Public sector)
This organisation comes under the jurisdiction of central government( Her Majesty's
Government) of UK. Government Communication Headquarter( GCHQ) was founded after first
world war and is an intelligence and security organisations having its headquarter in England,
United kingdom. The main objective of this organisation is signals intelligence and information
assurance to the government and armed forces of UK (Shu, Jain and Liang, 2019). The mission
of GCHQ is to keep Britain safe through bringing intelligence and technology together to
counter sophisticated threats. The vision of this organisations is to provide a safe and sound
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nations to citizens through keeping an eye on terrorists, hackers and other criminal gangs. Being
a public sector organisation GCHQ aim at providing better military services to citizens of UK
and aim at fulfilling the basis needs of safety of individuals. Thus, the biggest advantage of this
public sector organisations is providing and creating a terrorist and crime free environment and
atmosphere in UK. Currently around 6000 employees are working for GCHQ thus, it is large
organisation working under the control of central government of UK.
Equal Rights Trust (voluntary sector)
It is a voluntary trust of UK that operates at international level and having its headquarter
in London, United Kingdom. It is large sized independent organisations working in around 40
countries of world and beneficial for society as creating and raising awareness about human
rights and equality through publishing stories and timely reporting cases of abuses (Equal Rights
Trust, 2019). The mission of Equal rights trust is to eliminate discrimination and ensure everyone
can participate in society on an equal basis. The vision of this voluntary organisation is to have
equality in world (Singh, 2019). The main objective of Equal Rights Trust is to support equality
by combatting discrimination and providing all basis human rights to every individual across the
world.
LO 2
P3) Relation between different organisational functions
Keepmoat home Ltd is a private limited company which is a famous housebuilding
company of UK. Its headquarter is in Doncaster, UK. It is main aim is constructing and
providing best housing facility build through using superlative raw material. The functions of
this construction company is provided below.
Production- This functions or department is responsible for construction of buildings
and houses on the basis of requirement, need and desire of its customers. It is ensured by
Keepmoat home Ltd that raw material and other techniques used for construction of buildings is
of high quality so that a safe and well structured hose is provided top customers (Sousa and
Rocha, 2019).
Marketing- This function of Keepmoat home Ltd is responsible for promotion and
advertising of this organisation for attracting more customers to increase its productivity, sales
and revenue.
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Human resource management- The main function HR department is to recruit and hire
most talented and skilled employees for betterment ad success of Keepmoat company (Tura,
Keränen and Patala, 2019). Timely training and development preprogramme are also a function
of HR department which ensure high standards and better creativity at workplace of Keepmoat
home Ltd.
Finance- It plays an important role in preparation and maintenance of timely report and
budgets for all projects of Keepmoat home Ltd, thus keeps a check and control on cost and
expenses to meet the objective of cost efficiency.
Interrelation of functions in Keepmoat home Ltd.
Production and marketing- An interrelation between production and marketing in
Keepmoat home Ltd ensures construction of houses and building as per the instructions and
desire of customer and also maintain a balance between current trend of market and its
technology up gradation. Marketing department keeps production department updated about
latest trend and prevailing situation of environment thus, enhance efficiency of production
department and yield better result for Keepmoat home Ltd.
Finance and HR department- Finance department provides adequate sum of money to
HR department to provide timely salary and incentives to staff which enhance creativity and
efficiency of employees and in turn enhance overall productivity of Keepmoat home Ltd (Wirtz,
2019). Thus, a collaboration between HR and finance lead to better productivity through
providing better motivation and in turn finance department get better sales revenue to meet its
day to day expenditure.
From the above explanation it is clear that interrelation in functional unit yield better
result through facilitating efficiency in construction of building and attracting more customer for
product which yield higher sales revenue. To have a proper coordination and communication
between all the function Keepmoat home Ltd has implemented Functional organisational
structure in its organisation which has improved its efficiency and also reduces the chances of
confusion and chaos among different function.
Function based organisational structure of Keepmoat home Ltd.
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Illustration 1: Function based organisational structure of Keepmoat home Ltd, 2019
(source: Function based organisational structure of Keepmoat home Ltd, 2019)
PART 2
LO 3
P4) Positive and negative impacts the macro environment
For analysis and understanding the macro business environment use of PESTEL analysis
is made.
PESTEL analysis
Below a description about various factors of business environment and its positive and
negative impact upon business operations of Keepmoat home Ltd is provided below:
Political – The political environment of UK where Keepmoat is operating is quite stable
which has made working of this organisations easy. A stable political environment has created
many positive impact for Keepmoat home Ltd as there is not much permits and documentation is
required at every stage of construction thus, working become quite easy. The issue of Brexit has
created some negative impact on operation of Keepmoat home Ltd has a large number of
workers belong to EU (Xiong, Ye and Wang, 2019).
Economical- UK is having a stable and rapidly growing economic environment which is
providing many opportunity for Keepmoat through increasing the demand for houses. High
inflation rate has increased the prices of raw material like bricks thus, increasing cost of
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production. At the same time the unemployment rate of UK is also quite low( 3.9%) which has
lead to increase in wages of labour.
Social factor- The society of UK is having a viewpoint of having separate and
independent home which has is a positive sign for a construction company. The desire of society
of UK of having a standard and beautiful luxury house has created many opportunity for
Keepmoat home Ltd.
Technological- UK is highly developed in terms of technology and advancement which
is a positive sign for Keepmoat home Ltd and it ensure availability of better technology dan
machine for construction of buildings which enhance the productivity and revenue of an
organisation. But rapid improvements in technology also increase the cost of production as new
technology are mainly expensive to adopt (Yamamoto and Zhi, 2019). It also increases the
expenses on training of worker for having proper use of new technology thus, creates some
negative impacts for Keepmoat home Ltd.
Environmental- This factor include the elements related with degradation and harm
created to environment through various business operation. Many acts and policies are made by
government and society for protection and conservation of environment which has created some
issues for Keepmoat home Ltd as it need to have business operation which does not create much
harm and pollution (Zwikael and Smyrk, 2019). Keepmoat must focus on sustainability and
should conduct inspection of site before construction.
Legal- This factor is related with all legal provisions and acts which is necessary for all
organisations to follow. Being a construction company, many safety acts and laws are applicable
on Keepmoat home Ltd which sometimes create legal consequence and claims on this
organisation which is a negative impact of legal factor.
LO 4
P5) Analysis of internal and external strengths and weakness
For analysis and evaluation of internal and external strengths and weakness of an
organisation use of SWOT analysis is made which is described below:
SWOT analysis of Keepmoat home Ltd
Strengths Weakness
 The greatest strength of this  Shortage of labour
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organisation is that it is having a
advance system of project management
with an effective communication
system.
 Use of modern technology and work
automation with rapid advancement is
also a strength of Keepmoat home Ltd
(Keepmoat homes limited, 2019).
 A skilful and highly talented workforce
which lead to efficiency in all
Keepmoat Homes. 2019project is also a
strength.
 Keepmoat home Ltd maintain a good
relationship with its suppliers which is
also a strength as it reduces the chances
of delays and ensure uninterrupted
construction.
 High labour cost
 Huge amount of money is required to
invest in project creating higher risks of
loss.
Opportunities Threat
 Having an opportunity to increase its
productivity and efficiency through use
of modern and advance technology
 Better marketing strategy can be
adopted for effective promotion to
handle competition.
 High level of competition in
construction industry(Ali, Islam and
Rahman, 2019).
 Strict consumer safety and labour acts.
P6) Interrelation of strengths and weaknesses with external macro factors
An interrelation and connection between internal and external factors of organisation is
always there. Proser balance between internal strengths and weakness and elements of macro
environment yields better success and growth through grabbing of opportunity and also helps in
taking precaution for threats that exists in macro environment (Beatty, Samuelson and Abril,
2018). A international between strengths and weakness with external macro factor ensure that
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effective decisions are made by mangers and leaders of organisation after due analysis and
evaluation of both internal and external factor. Further, this collaboration between internal
strengths and weakness with external opportunity and other macro factors ensures that better use
of capabilities will be made for grabbing opportunity and handling threats.
The political environment of Keepmoat home Ltd has shown stability an interrelation and
connection of it with strength of Keepmoat home Ltd lead to enhancement in opportunity for
this organisation through making decisions and efforts for increasing it productivity through
making better use of modern technology (Boone and et.al., 2019). An advancement in
technological environment has also enhance the opportunity for Keepmoat home Ltd through
providing more efficient machine for construction of building and also reduce the threat of lack
of labour. The Brexit issue of political environment has created a weakness for Keepmoat home
Ltd through increasing its threat of lack of labour and also lead to increase in wages and salary of
employees because of shortage of labour which has increased the cost of production. The legal
environment of Keepmoat home Ltd is also creating a threat for it through exerting pressure for
providing a more safe and sound workplace for employees and should also need to have all
safety measures in its building for safety of consumer and to safeguard itself from future legal
claims and issues.
CONCLUSION
On the basis of above assignment it can be concluded that different types of organisation
are their in a business environment on the basis of their purpose, size and nature. An economy
mainly divided into three sector i.e. public, private and voluntary sector which includes different
types of organisation like sole proprietorship, partnership, trusts, etc. All organisation are having
different aim and objective like public sector organisations work for providing basic services like
transportation, health, military, police, eduction to citizen of a nation. Beside this, it can be
summarised from this assignment that use of PESTEL analysis is made for determining different
factors of macro environment while use of SWOT analysis is made to examine and evaluate
internal strengths and weakness.
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REFERENCES
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Online:
Equal Rights Trust. 2019. [Online] Available Through:<https://www.equalrightstrust.org/>.
Keepmoat homes limited. 2019. [Online] Available Through:<
https://beta.companieshouse.gov.uk/company/02207338>.
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Keepmoat Homes. 2019. [Online] Available Through:<
https://www.keepmoat.com/corporate/careers/vision-mission-and-values>.
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