RUNNING HEAD | BUSINESS ENVIRONMENT

RUNNING HEAD: BUSINESS ENVIRONMENT
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Business Environment

Business Environment
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Table of Contents
Introduction......................................................................................................................................2
LO1:.................................................................................................................................................2
Types of organization and purposes.............................................................................................2
Legal Structures...........................................................................................................................4
Relationship between different organizational functions.............................................................5
LO2:.................................................................................................................................................7
Relationship between business functions.....................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................9
LO3................................................................................................................................................12
Negative and Positive impacts of macro environment on business...............................................12
LO4:...............................................................................................................................................14
External and Internal Analysis in order to know weaknesses and strengths.............................14
Interrelation of weaknesses and strengths with external factors................................................15
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

Business Environment
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Introduction
Business environment is considered as the collection or sum of all external and internal factors
that includes customers, employees, expectations, management, suppliers, government,
technology, market trends, social trends, economic changes etc (Worthington,2009). This report
highlights the different types of organization, different size of organizations and scope of
organizations followed by interrelationship of many business functions that link to their business
structure. In the second section, focus is on negative and positive impact on the macro
environment of given business. In order to understand these concepts, three different type of
organizations are selected that are Virgin money, Tesco and Cancer research UK.
LO1:
Types of organization and purposes
Public Company Private Company Voluntary
organization
Definition Public organizations
are owned by the
government in order
to provide services to
citizens and exist
solely for fulfilling
social objectives
(Marjis and
Hulleman,2019).
Private enterprises are
the profit making
organizations that can
be owned and run by
both the government
and private bodies
including groups and
individuals
(Gorman,2019).
Not for profit
organizations are =the
organization that are
established to carry
social activities and
are non-governmental
in nature (Van
puyvelde et.al,2016).
Purpose Public sector
enterprise and
businesses are run by
the government, the
They are important
part of the
development and
growth of the
The purpose of this
type of organization is
to offer services
without aiming for

Business Environment
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purpose of these
organizations is to
deliver basic services
to citizens that include
police, military,
public infrastructure,
and electricity and
transports all services
and goods are offered
for the betterment and
development of the
society (Subramanian
and Kruthika,2012).
economy as
enterprises that are
owned by private
groups and individual
aim for making
profits. Private
organizations
contribute majorly in
the generation of per
capita income in the
country that resultant
in strong GDP growth
of the country at the
global level.
profits. The main
motive is to provide
benefits to enhance
and develop society to
the greater extent
without expecting any
monetary return.
Further, they also
focus on creating
social wealth and
improvement of the
society.