Understanding the Business Environment and its Impact on Organisations

This presentation provides an overview of the business environment and its impact on organisations. It discusses the different types and purposes of business organisations and explores the size and scope of various organisations in the public, private, and voluntary sectors. The presentation also emphasizes the importance of understanding the business environment for the growth and success of organisations.

Business environment

CONTENT
• Introduction
• Different types and purpose of business organisations
• Size and scope of business organsiations
• Conclusion
• References

Introduction
• It is very significant for organisations to understanding the
environment in which it operates and running.
• The environmental factors put a huge impact on all aspects of
business units as well as its nature, prices of products, location,
distribution system or policies.
• Thus, the growth and success of a corporate association depend on
adoption of the environment in which it functions.

Introduction
• It is very significant for organisations to understanding the
environment in which it operates and running.
• The environmental factors put a huge impact on all aspects of
business units as well as its nature, prices of products, location,
distribution system or policies.
• Thus, the growth and success of a corporate association depend on
adoption of the environment in which it functions.

Different types and purpose of business
organisations
There should be close relationship
among business and its
environment, this gives
strengthening to the firms by using
its resources efficiently. In this
competitive era, on the basis of their
types and purpose business
organisations are classified in to 3
parts, i.e. public, private and
voluntary sectors.

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Public sector – Public sector organisations consists with all
government and publicly controlled or funded groups, agencies and
companies which deliver public goods and services.
For example – National institute for health and care excellence
(NICE) is an public body which works for department of health in
UK.

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Private sector – This sector also plays an imperative role in
generating employment opportunists within the nation as there are
several number of private sector organisations are being growing day
by day.
For example – Domino's Pizza is UK based master franchise of
international fast food pizza supplier chain. The holds exclusive
rights to own, control, operate franchise branches of the chain in UK,
Ireland, Germany and other countries.

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Voluntary sectors – It is group of individuals who enter into an
agreement as volunteers to form a body in order to attain specific
social purposes.
For example – Oxfam is known as one of the largest charitable
organisation over the world which works towards alleviation of
poverty.

Size and scope of various range of organisations
Public sectors – The sector occupied wide place in order to attain
systematic and planned development in a country.
For example - NICE was established in an attempt to end the so-
called postcode lottery of healthcare in England and Wales.
Mission and vision of the company – The vision statement of NICE
is to improve health and wealth in the world through research.

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Private sectors – The sector also has a positive role in expansion and
development of a nation. It involves in managing and providing entire
services to people in general.
For example - Domino's is also known as of the largest private sector
entity. It operates through three segments: Domestic Stores,
International Franchise, and Supply Chain.
Mission and vision of the company – The vision statement of Domino's
Pizza is to be best operator of pizza system by having best talent.

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Voluntary sectors – It involves trade unions, public arts organisations,
social enterprises, voluntary and community organisations, community
interest etc.
For example – Oxfam is known as one of the leading charitable
organisation, it believes that poverty and powerlessness are avoidable
and can be reduced by human action.
Mission and vision of the firm – The mission statement of the
organisation is to address all the causes of poverty and work primarily
by local accountable units by raising their effectiveness.

CONCLUSION
• It is essential for managers to analyse all those internal and
external factors which can put a huge impact on business activities
and functional area.
• On the basis of their size and purpose business organisations are
divided into three parts, such as- public private and voluntary
sectors.
• In which public sector organisations works under control of
government whereas private sectors establish to gain high sales
revenues and competitive advantages.

REFERENCES
Agarwal, R., Grassl, W. and Pahl, J., 2012. Meta-SWOT: introducing a new
strategic planning tool. Journal of Business Strategy. 33(2). pp.12-21.
Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011. Big constraints to small
firms’ growth? Business environment and employment growth across firms.
Economic Development and Cultural Change. 59(3). pp.609-647.
Auzair, S., 2011. The effect of business strategy and external environment on
management control systems: a study of Malaysian hotels. International
Journal of Business and Social Science. 2(13).