Business And The Business Environment

The distinguished types of private (Amazon), public (Coco Cola) and voluntary ( Save the children UK) organization and their purposes and legal structure are discussed as follows: |Basis|Private Firm |Public Firm |Voluntary firm |Public company|Voluntary | |has “Ltd” at the|has “Pvt.Ltd” at |organization work| | |end of the |the end of the|for the | | |enterprise name |firm's name and

Business And The
Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
P1) Discuss public, private and voluntary organization's purpose and legal structure. .............1
P2) Highlight private, public and voluntary organization's size and scope................................3
P3) Review the relationship between several organizational functions and how are they inter-
related with objectives and structure of company. ....................................................................4
P4) Look into positive and negative impacts of macro environment with examples on business
operations. ..................................................................................................................................5
P5) Conduct SWOT analysis for both Public (Coco Cola) and private (Amazon) organization.
.....................................................................................................................................................9
P6) Explain strengths and weaknesses inter-connected with external macro factors. .............10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment comprises of internal and external factor which directly affect the
functioning of the business including supplier, customers, management etc. Organization need to
examine the business environment in order to design tactics for growth and success in the global
market place. This report is based on public (Coco Cola), private (Amazon) and voluntary (Save
the children UK) organization. This assignment covers private, public and voluntary firm in
which detail information regarding size, scope, background, vision, mission etc.
PESTEL(Political, economical, social, technological, environmental and legal) analysis is carried
out in an organization so that business can be expanded smoothly in the competitive world.
Whereas, SWOT (Strengths, weaknesses, opportunities and threat) analysis is carried out
environment so that threat and opportunities can be turned into their benefits (Aithal, 2016).
However, throw-light on how functions of organizations are interrelated and impact the the
structure of the organization.
P1) Discuss public, private and voluntary organization's purpose and legal structure.
The distinguished types of private (Amazon), public (Coco Cola) and voluntary ( Save
the children UK) organization and their purposes and legal structure are discussed as follows:
Basis Private Firm Public Firm Voluntary firm
Meaning Private company has
“Ltd” at the end of the
enterprise name and is
owned and traded
privately
Public company has
“Pvt.Ltd” at the end of
the firm's name and is
owned and operated
publicly.
Voluntary
organization work for
the betterment of the
society and people.
Minimum number of
members
The minimum
member's needed to
build public
administration are
seven.
In order to form a
company at-least two
members are required.
Minimum seven
members are needed to
open up a NGO or to
form a society.
Issue of prospectus Private organization
can issue prospectus
Prospectus can be
issued by public
Save the Children UK
firm does not have the
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and public are not
allowed for
subscription of shares.
company and they are
free enough to invite
public for subscription
of it's share.
necessity to issue
shares.
Purpose It's purpose is to gain
huge profits.
Public organization
main motive is to
serve the public by
generating more
employment
opportunities and other
facilities. It controlled
by governing bodies.
It's main purpose is to
uplift the community
or society (Ambler, T.,
Witzel and Xi, 2016).
Legal structure of Private firm are:
Sole Trader: In the competitive world sole traders need less amount of finance to start a
business. Newsagents, hairdressing etc. are the examples of private firm.
Partnership: In partners the profits and loss are shared among the partners according to
their agreed ratio of sharing. In an firm partners can be from 2 to 20 depending upon the size of
the company.
Private Limited Company: In this case it a joint stock company in which business has
separate legal entity. The shareholders are the part of the form and in any circumstances shares
are not sold top the general public.
Legal structure of Public firm are:
Local government: It is the local administration of countries, cities, towns which
includes both country and municipal government structure.
State government: This is accountable to share political powers with the federal or
national government.
Central government: It is the political authority which governs an nation. The United
state is a federal system in which authority and powers are shared among central and state
government (Andersson and Holm, 2015).
Legal structure of Voluntary firm:
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Trust: Voluntary organization gather monetary amount from various trusty where several
investors or companies contribute their a part of profits for the growth and upliftment of the
community.
Charity: Monetary value are allocated by the firm through various charity clubs. In this
case, voluntarily individuals contribute amount in the development of the society.
Explain size and scope of various public, private and voluntary firm.
Here, Private (Amazon) enterprise adopts legal structure of private firm and public (Coco
Cola) administration follows legal structure of legal firm. whereas, voluntary ( Save the children
UK) association conduct legal structure of voluntary firm.
P2) Highlight private, public and voluntary organization's size and scope.
The Size, scope, structure etc. of private (Amazon), public (Coco Cola) and voluntary
( Save the children UK) organization are stated as follows:
Basis Private (Amazon)
firm
Public (Coco Cola)
firm
Voluntary (Save the
children UK) Firm
Scope The future scope of
Amazon is to come up
with online book-store
into a global e-
commerce and cloud
colossus. By doing so
the goals can be
achieved on time.
The future scope of
Coca- Cola is to come
up with juices in order
to frame strong
portfolio. It directly
aid the firm to achieve
the desired goals on
time.
Save the children UK
future scope it to
provide better support
to children by
providing proper
education, Children's-
rights and health. The
set scope assist the
association to achieve
their set targets on
time (Voluntary
organization, 2018).
Product/ services The distinguished
product of Amazon
are, Amazon Art,
Amazon video,
Products of coco cola
are, coco cola zero,
diet coke, Simply, Del
Valle, Dasani, Gold
This association
provides life saving
support for children
suffered due to famine,
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Consumers
electronics, Amazon
drive, amazon
business etc. By
coming with this
products set objectives
are fulfilled.
Peak etc. This helps
the enterprise to raise
sales due to which set
standards are meet on
time.
wars, floods, natural
calamities etc. By
serving such services
society is uplifted and
set targets are
achieved respectively.
Number of employees Around 6,47,500
employees are
working across the
globe (Number of
employees in Amazon,
2019).
62,000 workers are
working day and night
to meet the emerging
needs of the customers
across the boundaries
(Number of employees
in Coca Cola, 2018).
24,000 staff are
working in more than
120 countries in order
to provide emotional
and financial support
to the children's.
Structure The structure of
Amazon is classified
as hierarchical.
Coco cola provides
support to regional
structure as their
decisions are taken by
executive committee
of 12 company
officers.
Save the children UK
adopts organizational
structure so that
society and
community can be
upgraded.
P3) Review the relationship between several organizational functions and how are they inter-
related with objectives and structure of company.
In an organization there are various organizational functions like, Human resource,
marketing, finance, customer support service etc. . The organizational functions varies according
to the type of business being carried out in the cut throat competitive world. The inter-connection
of several organizational functions are explained as follows:
Marketing and Finance department: In order to attain the objective in the market there
should be proper balance between marketing and finance department (Bah and Fang, 2015). In
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order to promote the product sufficient finance will be required. If there is lack of transparency
between both they best outcomes can be received and profit can not be maximized. The parallel
support from both end will aid the firm to achieve the desired goals on time.
Human resource and Production department: In this case the structure of the
company will provides rough idea that how many more human assets are needed in the
production division. Both division are interrelated with each other for effective results in the
market place. Sufficient human resource helps the company to accomplish the set standards on
time.
Customer support service and production department: The feed back from client
should be taken in positive way so that improvements can be done accordingly. In order to attain
the set goals firm should focus on the review regarding the product or services. By doing so
production of goods can be carried out respectively. This departments are directly or indirectly
are interrelated with each other due to which customers are made satisfied with the innovative
idea.
P4) Look into positive and negative impacts of macro environment with examples on business
operations.
Macro environment can be explained as those uncontrollable forces such as political,
social, legal, environmental etc. which directly or indirectly affect the working of the
administration at a large scale (Brown, 2018). Public (Coco Cola) and private (Amazon)
enterprise should investigate macro factor before entering into new market with new creative
idea so that business can be expanded smoothly without any government interference. PESTEL
analysis aid the business associates to deeply examine the factors so that accordingly policies
and strategies can be framed in order to capture huge market ratio. The PESTEL analysis for
Public (Coco Cola) and private (Amazon) company are discussed as follows:
Basis Public (Coco Cola) Private (Amazon)
Political factor Political factor includes bureaucracy,
tax policy, trade restrictions, foreign
trade policy etc. All this forces affect
the working of Coco cola at a wider
scale. Example: Suppose, in an
Foreign trade policy, consumer
protection laws, etc. are some of the
examples of political factor. Which
affect the business functions in a
positive and negative manner.
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country the tax policy is raised. It will
affect the business selling ratio due to
which profits maximization will be
affected. Positive impact:
 Raises profitability ratio as
political stability is there in
UK.
 Capture market ratio as
economy is strong in UK.
Negative impact:
 Fluctuation on policies
slowed down the growth.
Example: Suppose, the foreign trade
policy raised in the market. It is
positive sign for the business as it
raises the export rate due to which
countries economy increased.
Positive Impact:
 Helped firm to grow globally as
the GDP is strong Of UK.
Negative Impact:
 The fluctuation in foreign trade
policy affect the sales ratio.
Economical
factor
Interest rate, laws policies etc. are
examples of economical factor.
Which affect the profitability ratio at
a rapid scale. Example: Suppose,
The interest rate raised which
affected the business function in a
positive way.
Positive impact:
 Firm come with creative idea.
 Resources are utilized
effectively and efficiently.
Negative impact:
 Decreases productivity level
as policies need to modified
according to economic factor.
Economical factor involves wages rate,
policies, government activity etc.
which affected the company at a wider
level. Example: Suppose, the wages
rate increased it will directly affect the
profits volume in a negative way
Positive Impact:
 Company is able to expand
business in various other
segments.
Negative Impact:
 Human resources are work less
effectively and efficiently due
to which goals are not meet on
time (Charter, 2017).
Social factor Contribute a part of profit share in
societies welfare such as , education,
Coco cola shares a huge part of the
profits in the betterment of the society.
6

health care, environment safety etc.
all this forces directly affect the
functioning of business. Example:
Using the process of recycling helps
the organization to uplift the
community to better way.
Positive Impact:
 employees gets encouraged to
perform better.
Negative Impact:
 Government can seal the firm
if continuous to deplete the
environment.
As well as uplift the living standard of
the people. Example: Using less
chemicals and more of natural
ingredients will improve the health of
the people and make them fit.
Positive impact:
 Increases the market value of
the company in the eyes of the
customers by carrying out
social welfare activities.
Negative impact:
 Not sharing hands in the
welfare activities of the
community build negative
image. Due to which market
share gradually reduces in the
market.
Technological
factor
Adopting modern technological
assist the to achieve the desired goals
on time. Example: Modern
equipments helps to meet the
increasing demands in the market.
Positive Impact:
 Firm is able to bind customers
for longer time duration by
satisfying their needs.
Negative impact:
 Targeted customers are
switching to some other brand
which are cheap so the needs
can be fulfilled (Hamilton and
Coco cola is adopting modern
techniques to make drink in a large
quantity. So that emerging needs of the
customers can be fulfilled. Example:
3D technology helps the organization
to create tough competitors in the
market place.
Positive Impact:
 Bind customers with the
product and services by coming
up with innovative idea.
Negative impact:
 The production cost increased
for the goods and services due
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Webster, 2018). to which potential customers
are switching to other cheap
brand.
Environmental
factor
Harmful gases, climate, pollution, pH
level of water, pH level of soil etc.
are environmental related examples.
All this forces affect the business
growth and success at a tremendous
scale in the competitive world.
Example: The Emission of harmful
gases in the atmosphere raises
temperature of the climate. Due to
which survival of living things is on
stake.
Positive impact:
 By following this factor
business can be carried out for
years and profits can be
maximized.
Negative Impact:
 Firm spend huge funds on
searches work so as to come
with friendlily ways in the
market.
In this case, organization need to adopt
environmental factor so that business
functions can be carried out smoothly.
Example: The decrease in pH level of
water government has restricted
organization to stop disposal of waste
in the rivers, oceans etc.
positive Impact:
 By working for the betterment
of the environment brand
awareness can be created in the
eyes of the customers.
Negative impact:
 Due to raising economic forces
in the market cut throat
competition is prevailing at a
wider scale (Hillary, 2017).
Legal factor Legal factor are, consumer protection
, industry specific law, securities etc.
by following all this forces business
can flourish globally and operation
activities can be carried out smoothly.
Here, Coco cola follows legal laws in
order to work the business activities
smoothly without any government
interference in the market. Example:
By following the laws goodwill is
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Example: By adopting industry
specific law illegal activities can not
be carried out by the company.
Positive impact:
 Skilled and effective
employees can be retained for
longer time duration.
Negative Impact:
 When firm does not follow
employees related laws then
skilled workers switch to
some other company.
raised in the market due to which sales
ratio raises at a rapid scale.
Positive impact:
 The market share increase due
to which profit can be
maximized ta a large scale and
business can be expanded to
another level.
Negative Impact:
 Business associates come across
several challenges while
accomplishing objectives on
time.
P5) Conduct SWOT analysis for both Public (Coco Cola) and private (Amazon) organization.
SWOT (Strengths, weaknesses, opportunities and threat ) analysis is carried by an
organization so that market scenario can be closely examined in the market place. It assist the
company to frame strategies effectively so that tough competition can be set for others in the
market place. The SWOT analysis for both the firm are discussed as follows:
SWOT analysis of Amazon:
Strengths Weaknesses
 Amazon has strong brand image in the
eyes of the customers in the
competitive world. It positively affect
the decision making process in the
market.
 On continuous basis firm is growing
business in diversified sector. By doing
so HR of the firm is able to make
effective decision for the innovative
 Organization is limited in penetration
developing markets. Due to which
tactics are framed effectively and
positive decision are made.
 Flop of products is more in the market.
Fire phone was a big flop in the US. So
top level should take decision by
examining all the market activities for
effective results (Khan and Quaddus,
9

idea. 2015).
Opportunities Threats
 Firm by acquiring E-commerce
companies can reduce neck to neck
competition in the market. So that
better decision can be made for
expansion of business.
 Hacking of customers data is the
biggest threat to the firm. Amazon need
to assure customers that their data are
privately secured.
SWOT analysis Of Coco Cola:
Strengths Weaknesses
 Coco Cola has huge brand equity in the
market. Due to which decision making
need to taken by analysing all the
market factors for best results.
 The weak point of Coca Coal firm is
that it is less diversified in the product
due to which less market ratio is
captured. Top level management take
the decision by studying tactics of other
competitors.
Opportunities Threats
 Organization an spread into developing
countries having humid climate in the
market. So that more customer base can
be raised accordingly. Top level
management decision-making results
to effective results (Prajogo, 2016).
 Decreasing demand for carbonated
drink in the market.
 Huge competition from global and local
companies.
P6) Explain strengths and weaknesses inter-connected with external macro factors.
Political factor: In this case the strengths and weaknesses of business associates are
interconnected with macro factor because the frequently changing in policies and regulations
are the weak point in the competitive market place. Due to which the productivity decreases in
the market at a rapid scale.
10

Economical factor: In this particular case macro factor work parallel with the strength
and weakness. Any required changes or modifications in macro factors directly leads to change
in organizations strengths and weaknesses. Due to which skilled turnout ratio raises and market
value decreases (Quinlan and Griffin, 2019).
Social factor: Here, social factor greatly affect the strengths and weaknesses of the
organization as well as their productivity level. They inter-connected because working of the
business depends on the external factors in the cut throat competitive world.
Technological factor: Advancement in technology is equally related with macro factors
in the cut throat competitive world. By doing so company come up with innovative product and
services and are able to meet the emerging needs of the customers (Saleem, 2015).
CONCLUSION
From the above it can be summarized that macro environment plays a vital role in the
growth and development of the business globally. The purpose and legal structure of private,
public and voluntary organization is studied so that future objectives can be designed
respectively in the market place. In an administration the organizational functions such as human
resource, finance, production, marketing etc. are interconnected with each other so that best
outcomes can be achieved. PESTEL and SWOT analysis are investigated by the firm in order to
figure loop holes of other which can be turned into their benefits in the competitive world.
Additionally, enterprise studies the strengths and weaknesses inter-connected with external
forces so that improvements can be done in the initial stage.
11

REFERENCES
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Africa. Journal of Development Economics, 114, pp.159-171.
Brown, R. A., 2018. Chinese business enterprise in Asia. Routledge.
Charter, M., 2017. Greener marketing: A responsible approach to business. Routledge.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Khan, E. A. and Quaddus, M., 2015. Examining the influence of business environment on socio-
economic performance of informal microenterprises: content analysis and partial least
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288.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
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Quinlan, C., Babin, B., Carr, J. and Griffin, M., 2019. Business research methods. South Western
Cengage.
Saleem, S., 2015. BUSINESS ENVIRONMENT, 3/e. Pearson Education India.
Online:
Voluntary organization. 2018.[Online]. Available Through:</https://www.google.com/search//>
Number of employees in Coca Cola. 2018.[Online]. Available
Through:</https://www.statista.com/statistics/254562/coca-colas-number-of-employees-
worldwide///>
Number of employees in Amazon. 2019.[Online]. Available
Through:</https://www.statista.com/statistics/234488/number-of-amazon-employees///>