Business and Business Environment: Types, Functions, and Impact

Business and business
environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Different types and purpose of organization public, private and voluntary...........................3
P2 Size and scope of range of different types of organization....................................................5
M1 structure, scope and size........................................................................................................6
LO 2.................................................................................................................................................6
P3 Relationship between different organizational functions link to structure and objective......6
M2 Advantages and disadvantages of interrelationship between organizational functions and
impact on structure......................................................................................................................7
D1 Critical analysis of challenges with different business structure and relationship................7
LO 3.................................................................................................................................................8
P4 Identify negative and positive impact of macro environment upon business operations.......8
M3 PESTEL analysis of macro environment............................................................................10
LO 4...............................................................................................................................................10
P5 Internal and external analysis by using SWOT analysis......................................................10
P6 Strength and weakness interrelate with external macro factor.............................................11
M4 Justification of SWOT analysis influences decision making process.................................11
D2 Impact of macro and micro environment on business objectives and decision making
process.......................................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Business and business environment is the best and effective approach which is the
collection and sum of all internal and external factors. Those factors are employees, customer’s
expectation, supply and demand, management, client, owner and suppliers, activities by
government and innovation as well as social trends. The present report is based on arcadia group
which is British multinational retail company. Company deals in various product and services
like clothes, accessories and shoes. Report will explain different types and purpose of
organizations like public, private and voluntary with size and scope range of organization. This
will explain relationship between different organizational functions and linking with objectives
and organizational structure. The report will identify impact of external factors by using PESTEL
analysis. At the end of report will also highlighted internal and external analysis of organization
with its strength and weaknesses and interrelations with external factors.
LO 1
P1 Different types and purpose of organization public, private and voluntary.
There are different types and purpose of organization which are establishing for achieving
goals and objectives that are sets by owner. There are two types of business which are explained
below:
 Profits making business: this type of organization has one main goal to make effective
and best money like to make the higher profit (Bocken, Boons and Baldassarre, 2019).
 Non profit making organization: this type of organization has focused on a keeping it for
going in an effective manner at market place.
Different types of organizations are as follows:
Private organization:
Private organization is the type of organization which is run by companies and individual
for earning profits. The Private company has main purpose is to earn profits for growth of the
economy. There are different types of private companies are explained below:
 Sole traders: This type of business is owned by an individual person. Example: real
beauty salon is a sole trader firm that is formed for earn money. Key features of sole
trader business are simple to form, individual owner, less legal formalities (Bosilj Vukšić,
Brkić and Tomičić-Pupek, 2018). The main goal of sole trader is to retain higher margin
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of profit and purpose to keep costs lower. The main objectives of company are to make
money for fulfil ultimate goals. The legal feature of company is minimum government,
unlimited liability.
 Partnership firm: is organized with two or more people. John Lewis is the best example
of a partnership firm. The main feature of business is two or more persons, lawful
business and sharing profit and loss equally. The Goal and purpose of this business is to
share the loss and profit equally at market place (Buehler and et.al., 2019). Objective of
business is to bring together their skills and resources for getting effective success at
market place. The legal feature of company is come with legal agreement and contract at
the market place.
 Public limited firm: This type of company is held small business entity in which owner
liable is limited for sharing their share. Example of private limited company is TESCO is
private limited company. Goal of TESCO is to make shopping cheaper for the average
households. Purpose for opening is attracting customers and objective of business is to
introduce more healthy eating products at wide range of supply.
 Private limited firm: private limited company is held small business entity, in which
owner liability limited to their share. The best example of private limited company is
arcadia group. Main features of private limited company are owning, legal compliances
and minimum share capital. The main goal and purpose of company is to earn money.
Public sector:
This type of organization is owned by the government for providing services to public.
This sector is makes goods and services for people (Comin and et.al., 2019). The example of
Public Sector Company is NHS, this provides free medical services to people who are not able to
afford medical services. Feature of NHS is to provide comprehensive services to people.
Objective of company is to keep safer all the people.
Voluntary sector:
This sector has a duty to perform social activities which are undertaken with organization
for non profit organization. OXFAM is the best example of this sector. The main purpose of this
is emphasizing the relationship in society, provide benefits. The organization structure is
contributing greatly to working.
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