Business and Business Environment

This presentation provides an overview of the business environment and the different types of organizations. It discusses the purposes of various types of organizations, the size and scope of different types of organizations, and the link between structure, size, and scope with the products and services offered. It also explores the functional relationship and its link with the objectives and structure of the organization, and the advantages and disadvantages of interrelation between departments and its impact. Additionally, it analyzes the difficulties in different types of business structures and organizational functions relationship.

BUSINESS AND BUSINESS
ENVIRONMENT

Introduction
 The business environment include all the factors that affect the business
activity internally as well as externally.
 The environment is consist of internal and external factors.
 This report describes the size, scope, structure and purpose of different types
of organizations.
 It explains the interrelation of structure, size and scope of organization with
the products and services providing by the organization.
 It also briefs about the link between functional department with the
objectives and structure of the organization.

1.1 Purposes of various types of organizations
There are different types of organization in the economy. The types are as follows:
Public sector organizations: The purpose of public sector organizations is to work
for the individuals like generating employment opportunities, providing education,
etc.
Private sector organizations: The main purpose private sector organization is to
earn maximum profits.
Voluntary organizations: The main purpose of these type of organization is to do
welfare for the society.

1.2 Size and scope of different types of organization
Public sector organization:
Size: As Asda Store Ltd. is a large public sector organization and work on a large
scale.
Scope: The scope of public sector companies is from large organizations to the small
organization. It has a wider range of scope. It is responsible and accountable for the
resources which they are using. But the scope is limited to the profits
Private sector organization:
Size: Private sector organizations can be small or large.
Scope: The scope of these are also wide. They work with the motive of profit
maximization, so they go for large markets or across the country. Mostly these type of
organizations are growing more.
Voluntary organization:
Size: These type of organizations are not on very large scale. These are from small to
medium size.
Scope: The scope is there but not so much popular. In-spite of this they are running.

1.3 Link between structure, size and scope with the
products and services offered by the organization
 The structure of the business is depend on its size.
 Asda Ltd. is a large retail public organization in British whose having business
structure in hierarchy which includes top, middle and lower levels. It has wider
range of scope.
 Iceland Foods Ltd. is a large privately hold organization in British supermarket.
It is also having hierarchy in the structure, but not so wide. The scope is very
wide.
 In Voluntary organization the business structure is not in so much level of
hierarchy like the members an then managers if required. The scope is not so
wide.

2.1 Functional relationship and its link with the objectives
and structure of the organization
 The organization divide its activities into various functional departments.
 The various types of departments are- purchase, sales, marketing, finance, human
resource, information technology, research and development etc.
 The functional departments in an organization is depend upon its size and structure.
 The different departments are also adhere to the objectives of the organization. They
consider the objectives and work accordingly.
 The functional head can take help or advice from another departmental head.

2.2 Advantages and disadvantages of interrelation
between departments and its impact
Advantages:
Employee can take help from the head of other department.
Every department having the knowledge about the other department.
Easily transfer of employee from one department to other.
The work goes in a coordinated way.
No overlapping or duplication or work.
Disadvantages:
Due to specialization of work they get expertise in a particular field only.
The chances of misguidance can happen.
The feel of competition may arise among departments, which is not good for the
organization.
The overall impact of interrelation between departments is not so much negative, it
is moreover positive impact. Even through these organization can run smoothly.

2.3 Critical analysis – Difficulties in different types of
business structures and Organizational functions
relationship
 Business structure is a layout or a framework for the organization.
 The jurisdiction in which the organization is going to operate.
 Every structure of business is having its merits and demerits.
 Before selecting the structure of business, it is required to identify the objectives
and goals of the business.
 Different types of business structure includes sole proprietorship, partnership and
corporations.
 In sole trading there is a single person, in partnership there are more than two
persons and hire other people if required and in corporations the hierarchy is to
be framed from top to bottom.

Conclusion
 The conclusion of this report involves that the purpose of organization
depends upon its type
 The size and scope of the organization is depend on its type.
 The functional departments are based on the structure of the organization.
 The interrelation of functions are beneficial for the organization.

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