Business and the business environment

This report discusses the different types and purposes of organizations in the business environment, including private, public, and voluntary sectors. It also explores the interrelationship of organizational functions and structures. The case study of Aston Martin, a luxury sports car manufacturer, is used to illustrate these concepts.

Business and the
business environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
Task 2...............................................................................................................................................3
1. Different types and purposes of organisation..........................................................................3
2. Different legal structures in private sectors.............................................................................4
4. Different types of business structure and the relevance of the interrelationship of
organisational functions...............................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCE................................................................................................................................10
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INTRODUCTION
Business environment is related to those factors which can impacts on business industry
such as internal and external. This involves clients, suppliers, competition, owners, shareholders,
technology, etc. Every organisation should accept the challenges and changes which helps to
deal with difficulties and run their business independently (Belyaeva, 2018). Business can be
established, but to sustain successfully a business there is need many resources such as finance,
human resources, capital etc. To understand about business environment Aston Martin has been
selected that is car Manufacturer Company produce sports cars by using new technology. It gets
funds from Investment Company who understands the requirement of company and provide
finance. This report covers different types and purposes of organisation, different legal structures
in private sectors and interconnection of organisational structure, size and scope with
organisational objectives.
Task 2
Main Body
1. Different types and purposes of organisation
In business environment, there are many company exists they are of different types such
as private, public and voluntary sectors. All business organisations have different purpose that
helps to run a business and accomplish business objectives. Every organisation wants to run their
business by providing different types of products and services. This is important for business to
focus on internal and external factors and influence business organisation. The description of
different types of organisation are as defined:
Private sector - This means those companies which are not run by any government
authority. This refers as any individual, corporations, partnership, association and agency who
operate their own business without following any government regulations (Kwilinski and et. al.,
2019). They works only for making profits. In business environment there are different private
organisations which operate their business independently by understanding needs and wants of
people. This also helps to to contribute in economic growth by contributing in taxes.
Purpose - The main purpose of private sector is to run their business by maximising the
profits. All business risk and profits are controlled by one person or private sectors.
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Public sector - This means that organisation which are run by government department
bis consider as public sector. Such organisation does not have any separate existence than the
government. The functions and business activities are controlled by department of government.
For example, Railways, broadcasting, telephone and post services (Alles and et. al., 2018).
Purpose – The purpose of public sector is to provide public services by involving public
goods and services. This wants to provide those services which can help people to improve their
living standard.
Voluntary sector – This means a group of individuals who enter in to an agreement in
order to accomplish a purpose. This types of organisation run their business with the concern of
all member and for the purpose of providing benefits to public (Tallman, Luo and Buckley,
2018). Voluntary sector are those sector which does not follow any legal or government
regulation and make benefits for people. For example, NVCO (National Council for voluntary
organisation), British Red Cross, Cancer research UK.
Purpose - The main purpose of voluntary sector is to provide benefits and enrich to
society without profit motive and no government interventions. This involves charities,
foundations, social welfare organisations, advocacy groups etc.
2. Different legal structures in private sectors
Aston Martin is a Luxury sports car manufacturer company that uses new technology and
ideas to develop the sports cars and making profits. This is British Manufacturer company which
was founded in 1913 by Lionel Martin and Robert Bamford. The management of such
organisation understand the desire of customers and produce car model accordingly which helps
to create trust among customers (Phillips and Moutinho, 2018).
The legal structure of Private sector considers:
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Illustration 1: Legal structure, 2019
Source: Legal structure, 2019
3. Organisational structure, size of business and scope are connected to overall organisational
objectives
Organisational structure is a system which outlined on certain activities which are
directed for the purpose of achieve organisational goals (Stout-Rostron, 2018). There are
different types of organisational structure which are follows by business organisation in order to
complete targets and attain business goals. Description of different types of structure is as
defined:
Functional structure - This means a structure in which all departments are
interconnected that helps to work very well. This helps to maintain coordination among all
departments which help in performing all business activities.
Divisional structure - This structure is mainly used in wide size organisation where
activities are divided between employees in small area. This helps to perform business activities
effectively (Gomes and et. al.,2018).
Matrix structure: This states that organisation classify their staff in to team of product
and project which are managed and controlled by product and project manager. In other words,
cross functional functions are used by business organisation to share the information which helps
to operate business activities successfully (Toma and Marinescu, 2018).
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From the above mentioned structure Aston Martin is using matrix organisational structure
in which business activities of employees are divided in to different department and managed by
their specified manager. This is multinational entity which manufactures sports cars as per
customer choice. By using this structure all activities are performed accurately which processes
to accomplishment of objectives (Nisula and Pekkola, 2018). The size, scope and objective are
related as small size and scope of business has small objectives which helps to perform under
functional structure by performing all functions effectively. By following structure organisation
focus on their objectives, size and scope which helps to define the how employees need to
perform their job and how they can manage the business activities. They are interrelated with
Aston martin structure as it is big in size and scope that has different objectives which can attain
by following the matrix structure which helps to perform all functions effectively.
The benefits of this structure are that employees are free to communicate with each other
and help to attain business goals. This is connected with size and scope with organisational
objectives such as Aston Martin is large size organisation that has wider scope and long goals.
To accomplish them there is need to classify the activities in to different department and work
properly. This structure helps to attain the business goals effectively (STEGĂROIU, 2018).
Global economy is consider as economy of all human world which is consider as
international exchange of goods and services that expressed in monetary units. Organisation
should focus on global economy and need to provide provide products and services accordingly.
By focusing on global economy it can get increase the brand image and market share in
internation market.
4. Different types of business structure and the relevance of the interrelationship of
organisational functions
Business organisation is focusing on different types of functions which are important to
run a business successfully. All functions are managed by a manager who analysis the needs and
wants of people and make efforts to accomplish them (Paul and et. al., 2018). A business concern
manly focuses on profit making activities by satisfying the customers which helps to create a
brand image. In context to Aston Martin, managers are performing different types of functions in
order to run a business successfully. The structure which is following by managers that is Matrix
structure, connected with different organisational functions (Ghobakhloo and Azar, 2018). The
interrelation of different functions is as defined:
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Different functions of organisation that are linked with objectives and structure
Research with marketing - Marketing is the important functions of business entity
which attracts people to purchase the products. Research is also main function which helps to
know about current trends and demand of people and make efforts to introduce those kinds of
products and services (Полякова, Шайда and Степанов, 2019). Both functions are connected
with each other as research department of Aston Marin collect the information about
expectations of people and share with marketing department which helps to introduce their
wanted products that processed to goal achievement. They are interrelated with matrix structure
such as both department coordinate with each other and share the information independently
which helps to attain the business goals. This function is important in business organization
which helps to operate the functions effectively.
Marketing with finance - For performing all functions and doing something finance is
important that helps to do all activities efficiently. Finance is the core functions of business
industry that are control by manager by performing all functions. Marketing function is used to
increase the sale of business organization by influencing person (Nardelli and Broumels, 2018).
Both functions, marketing and finance are interlinked with organizational objective such as
marketing department understand the goal of business organization and get funds from finance
department in order to perform marketing activities. To perform marketing activities marketing
manager uses advertisement, billboards, social media and brand celebrity which helps to provide
information to people and increase productivity and profitability. These all are interconnected
with matrix structure such as manger classify the activity in to different department and perform
effectively which helps to attain the business goals.
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Illustration 2: Organizational chart, 2019
Source: Organizational chart, 2019
Sales with IT - In current scenario, technology is growing fast due to which people's
needs and wants are also changing. It is important for firms to be up to date from new technology
which can help to gain competitive advantage. Technology department is core function of
manufacturing and other company which make easy the business activities and run their business
successfully. Sale functions is required many activities which helps to increase the business
performance by selling the products and services independently. In context to Aston Marin both
functions are connected with each other such as by using new technology sale of business
organisation can be increase which helps to Maintain high profits that leads to accomplishment
of business goals.
HRM with Marketing - Various roles are played by HR manager who understand the
requirement of organisation and helps in marketing by selecting the people which helps to attain
organisation goals. For instance, whenever Aston Martin needs employees for their
manufacturing department, IT department, finance department and sale then marketing functions
helps to collect the employees with different skills and experience which helps to attain
organisational goals (Alexandra-Maria, 2018). This is related with Matrix organisational
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structure which is following by such organisation such as all employees of different department
share their ideas and makes efforts to complete the task which is decided by management.
CONCLUSION
From the above report it can be concluded that in business environment there are
different types of sectors such as private, voluntary and public out of them private works for
profits, public works for non-profit and voluntary sector works for social welfare and providing
satisfaction to all people. Different functions such as marketing, finance, HRM, IT, and
production department are connected with organisational structure which helps to accomplish
business goals effectively. Human resource management needed in every organisation which
helps to run all organisational functions by formulating different policies.
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REFERENCE
Books and Journal
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Kwilinski, A., and et. al., 2019. Formation of the entrepreneurship model of e-business in the
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Alles, M., and et. al., 2018. Continuous monitoring of business process controls: A pilot
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Stout-Rostron, S., 2018. Business coaching international: Transforming individuals and
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Gomes, J. F., and et. al.,2018. Cyber security business models in 5g. A Comprehensive Guide to
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Toma, S.G. and Marinescu, P., 2018, May. Business excellence models: a comparison.
In Proceedings of the International Conference on Business Excellence (Vol. 12, No. 1,
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STEGĂROIU, C. E., 2018. INTEGRATING CLOUD TECHNOLOGIES IN THE BUSINESS
ENVIRONMENT. Annals of'Constantin Brancusi'University of Targu-Jiu. Economy
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Belyaeva, Z., 2018Kwilinski, A., and et. al., 2019Alles, M., and et. al., 2018Tallman, S., Luo, Y.
and Buckley, P. J., 2018Phillips, P. and Moutinho, L., 2018Stout-Rostron, S.,
2018.Gomes, J. F., and et. al.,2018Toma, S.G. and Marinescu, P., 2018,Nisula, K. and
Pekkola, S., 2018STEGĂROIU, C. E., 2018Paul, P., and et. al., 2018.Ghobakhloo, M.
and Azar, A., 2018.Полякова, Ю. В., Шайда, О. Є. and Степанов, А. В.,
2019.Nardelli, G. and Broumels, M., 2018. Alexandra-Maria, G., 2018
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