Business and Business Environment

This presentation provides an overview of the business environment, including the factors that influence it. It covers different types of organizations, such as private, public, and voluntary, and discusses legal structures. The presentation also includes case studies of TESCO, Marks and Spencer's, and NHS, along with information about their size and scope. Additionally, it explores the relationship between various functions in M&S and highlights the departments within the organization. References are provided for further reading.

BUSINESS AND
BUSINESS
ENVIRONMENT
Task 1

COVER CONTENT
 INTRODUCTION
 Private Organisation
 Public Organisation
 Voluntary Organisation
 Legal structure
 TESCO
 M&S
 NHS
 Department in M&S

INTRODUCTION
 All those factors the affect the environment of business and which
cannot be controlled by the organisation are known as Business
Environment.
 These factors include all the internal and external forces that
influence the growth, survival end expansion of business in a given
market

PRIVATE ORGANISATION
 Every company is formed with the aim to generate profits out of it
in order to survive, grow and expand in future.
 This type of institution has minimal government intervention.

PUBLIC ORGANISATION
 The aim of this company is also to earn profits but it distributes the
profits earned to its shareholders in the form of dividends.
 It is formed by issuing an IPO to general public.

VOLUNTARY
ORGANISATION
 Its main purpose is to help people and works for the welfare of the
society.
 It can be both a government institution or a private non profit
organisation.

LEGAL STRUCTURES
 Sole proprietorship
 Partnership Firm
 Company
 Voluntary Trust

SOLE PROPRIETORSHIP
 It is owned and managed by a single person.
 The start up cost for this type of business is very low.
 Since no other person is associated with it the liability of the owner
is unlimited i.e. Even his personal assets can be used to pay the debt
of creditors.

PARTNERSHIP FIRM
 In this two or more persons come together in order to share the
profits of business.
 In this either both or any one partner bring the capital to start it.
 All the partners in the partnership firm are equally responsible for
the liability of the firm.
 To ensure that there are no issues relating to the work, responsibility
and sharing in profits a partnership deed is signed and registered.

COMPANY
 Any body of corporate formed with a view to distribute the profits
among its shareholders and registered under the companies act is
known as Company.

VOLUNTARY TRUST
 Here there is no restriction on minimum and maximum number of
members.
 The members come together to serve the society and its people.
 It can either be an independent trust or in tie up with a government
body.
 There is no legal and government involvement in these type of
trusts. NHS is trust formed to treat both critical and non critical
residents free of charge.

SIZE AND SCOPE OF
ORGANISATION
TESCO,
Marks and Spencer's
NHS.

TESCO
 TESCO is one of the leading public limited company in the retail
sector.
 It is the third largest retailer in the world in terms of profits.
 At presents the company have approx. 6500 stores majorly in UK
and USA and online grocery stores with around 4.75 lac employees
working with it.

MARKS AND SPENCER'S
 Marks and Spencer's is one of the leading private company in the
retail sector dealing in clothes, home products and luxury food
items.
 At present a large number of employees are associated with it.
 It aims at providing a world class retail experience to its customers
and also reward its employees by maximising the profit and
increasing sales revenue.

NHS
 NHS is a Voluntary association with the only purpose of serving its
patients. it was formed in the year 1948, to provide the best of
medical facilities either critical or non critical for the residents of
England free of cost and some services for a very nominal fee.
 It is the fifth largest employer of the world with every doctor and
nurse of England associated with it.

Relationship between various functions in M&S.
 Marks and Spencer's owns retail store in UK, USA and many
other countries with a view to sell clothes, home products and
luxury foods.
 It follows a flat organisational structure where there are minimum
level management between top executives and staff members.
 The level of communication between all department is very good
as there are minimum number of middle level management, hence
the employees work more efficiently .
 A flat structure is broader and flat .

Departments in M&S
 Finance department
 Marketing department
 Human resource department

FINANCE DEPARTMENT
Its main function is to reduce cost and aim at
increasing the profits of the company by
eliminating all the unnecessary expenses.

MARKETING DEPARTMENT
 Its work towards attracting new customers and retaining existing
ones by analysing the niche market.
 It is also required to have a detailed study of the age, choice,
preference, taste and nature of shopping of its clients.

HUMAN RESOURCE
DEPARTMENT
 This is the most important function of any company because if the
employees that are appointed are as per the requirement of
company and also has capability to grow in future the company
can flourish.
 Employees are the most important resources of any company.

REFERENCES
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent
developments and future research. Journal of management, 37.
(4).pp.1019-1042.
Cavalcante, S., Kesting, P. and Ulhøi, J., 2011. Business model
dynamics and innovation:(re) establishing the missing linkages.
Management Decision, 49.(8). pp.1327-1342.

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