Business and the Business Environment

Business and the business
environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types of Organisations and their legal structure.....................................................3
P2. Explanation of the size and scope of different types of organisations..................................5
P3. Interrelation between different organisational functions ......................................................7
Part 2 .............................................................................................................................................10
P4. Positive and negative impacts of macro environment has upon business operations..........10
TASK 4..........................................................................................................................................12
P5. Internal and external analysis of specific organisations in order to find out strengths and
weakness....................................................................................................................................12
P6 Strength and weakness which are interrelated with macro factors.......................................13
CONCLUSION..............................................................................................................................15
..........................................................................................................................................................1

INTRODUCTION
Business environment is consider as marketing term involving various factors that affects
the ability of organisation in order to build and maintain good relations with customers. In other
words, it is the sum of internal and external factors such as customers’ needs, supply and
demand, management, clients, suppliers, owners, innovation in technology, economic changes,
market trend, activities by government and economic changes etc (Alsaad, Mohamad and Ismail,
2017). All factors are affecting the functions of firm and states how its works directly and
indirectly. This reports will help to collect different types of information such as types of
organisation and their scope, size, purpose and legal framework. Structure of company and kind
of functions which are related to organisation, interrelation between functions and macro
environmental factors which affects the business, to be discussed properly.
TASK 1
P1. Different types of Organisations and their legal structure
Business environment is the important aspects of business that covers different types
organisation, formed by different authority and legal frameworks (Different types of organisation
involving public, private and voluntary, 2020). It involves mainly three typ[es of organisation
like private, public and voluntary that are as discussed beneath:
Private sector
This sector involves those firms which are owned by individuals and driven by profits. It
run business by private financed, collected from shareholders, bank loans, personal property etc.
In this, legal and financial framework is set by private individuals for running business and
making profits. For instance, Morrisons, Bentley motors, ASDA, Mark and Spencer etc. The
main discussion is about Sainsbury that is larger super market in UK.
Purpose: The main purpose of Sainsury is to provide healthy and good food at fair prices
and gain competitive advantages (Wood and Logsdon, 2017).
Legal structure:
Sole proprietorship: A simple structure of business that is operated by limited
corporation as it is operated by public limited firm.
Limited company: This introduce kind of corporations that controls the fixed liability
for investment and getting profitability. Private organisation are runs for making profit where as

public is run for social purpose. Limited company is consider as a type of business structure
where organisation is having legal identity of its own. It is separate from managers and owners
and formulated under companies act.
Partnership: This states agreement between two and more person for starting a business
in order to attain common objectives.
The legal structure of Sainsbury is public limited liability company. It is managed by
people who works in organisation collectively by following rules and regulations (Wood and
Logsdon, 2017).
Public sector
Public sector considering organisation which are owned by government, providing goods
and services for community benefits. This types of of organisation operates their business by
raising money from taxes (Aydiner and et.al., 2019) . For instance, HM Treasury, Department for
Transport, Civil services, Crown Commercial services etc. are run by governmental authority.
The main discussion is about Crown commercial services that is providing professional
procurement services to public sector that enable companies to deliver improve value for money
in activities (About Crown Commercial services, 2020).
Purpose: The main purpose of CCS is to provide high procurement services that can help
to improve value for money in order to run business activities. Moreover, to increase business
value by providing financial support and improve environments by using savings (About CCS,
2020).
Legal structure:
Local government: An administrative structure that covers small geographical area such
as town, city etc. that control over a specific region.
State government: A part of government that forms laws and legislations for state which
is liable for local needs and problems of particular state.
Central government: This is governmental authority, that regulates whole country by
formulating rules and regulations. It maintains public welfare and global negotiations as having
power and authority (Fabuš, 2017).
Crown Commercial service is the public organisation that is following central
government legal structure. It is providing services to required person all over the nation by
following government regulations.