Business and its Environment | Assignment

Business &Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Different types and purpose of organization....................................................................1
P2: Size and scope of various types of organization..............................................................3
TASK 2............................................................................................................................................4
P3: Relationship between various organizational functions and their linking with the structure
and objectives.........................................................................................................................4
TASK 3............................................................................................................................................5
P4: PESTLE model to determine positive and negative impact of macro- environment.......5
TASK 4............................................................................................................................................6
P5: Internal and external analysis of M&S company with other similar organization..........6
P6: Interrelation of strengths and weaknesses with external macro factors...........................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment is a kind of link between organisation’s actions and its
environment. Environment is the atmospheres of a company by which firm influenced directly or
indirect manner. Where the political, economic, social, and technological factors shopping a
business environment that are evaluated by a business for making forthcoming strategy. The
company’s business environment also includes the suppliers and customers who play an
important role in the business. There are two types of environment faces by the company such as
internal and external. In Internal environment it considers internal factors like value system,
mission and objectives, quality of human resources, organizational structure etc. whereas
external environment includes external factors which are two types like micro and macro
(Avramenko, 2012).
In micro external environment includes suppliers of input, customers, marketing
intermediaries, competitors, etc. and macro external environment includes economic, legal,
global, natural, and ecological. While preparing this report, Marks and Spencer, UK based
company which manufacturer’s apparels, food products, and other household items are selected
for this report. This report also summarized different size, kind, and scope of organization and
also includes its important functions and structure. The strategic management tools and
techniques are used in this report like SWOT and PESTLE to analyse the business environment
factors. This report also summarized the strengths and weaknesses of the Marks & Spencer
Company.
TASK 1
P1: Different types and purpose of organization
Following there are different types of organizations which are summarized below:
Private Sector Organization: A private sector organization is that organization which is
owned, managed and controlled by private individuals or institutions. Maximization of profit is
main priority of private sector (Karagiorgos, Drogalas and Giovanis, 2011). A private sector
does not undertake risky ventures or those having low- profit margin. Private enterprises are run
by businesses men; capital is collected from the private partners. For example, M&S is the
private sector organization in UK which has operated its own business operations in so many
countries. It has 1000 (approx.) outlets in UK itself.
Characteristics:
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 Private ownership
 Profit motive
 Independent management
 Private accountability
 Private management
Types of private organizations
 Partnership organization: A partnership organization is a type of business organization
where there are two or more individuals or persons pool money, skills, and other
resources, and share profit and loss in accordance with terms and conditions of the
partnership agreement. For example, FAB.
 Limited liability organization: A limited liability organization is a corporate structure
where the members of the company cannot be held personally liable for the company’s
debts or liabilities. It has combination characteristics of a corporation and a partnership or
sole proprietorship. For example, Associated British Foods, PLC. This organization can
be classified into two types i.e. in the form of guarantee and shares.
 Sole proprietorship: A sole proprietorship is the ownership of a business by one person,
who receives all of the profit, but is responsible for all debts and obligations as well. The
individual who owns and runs the firm is called as ‘a sole proprietor’ or ‘sole trader’. For
example, Restaurants, beauty salons, etc (Kolk, 2016).
Public Sector Organization: A public sector organization is the organization controlled
by and accountable to central or state government. Such type of organization is established to
provide services for its citizens. For example, the public sector organization includes education,
electricity, emergency services, healthcare, etc.
NHS is an organization which is provides medical services at reasonable prices to the
people of the country. This organization is basically focuses on the low income group who are
not afford the expensive medical services. The organization has a main function by providing
medical facilities to the society and its betterment in the UK.
Objectives of NHS
 To keep the lifestyle of every individual in healthy manner.
 Providing free check-ups to the low income group.
 Providing betterment of healthy life to the society.
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