P1 Different types & purposes of business organisations

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Different types & purposes of business organisations...........................................................1
P2 Size and scope of different types of organisations ................................................................3
TASK 2 ...........................................................................................................................................5
P3 Relation among different organisational functions and their link with objectives &
structure.......................................................................................................................................5
TASK 3 ...........................................................................................................................................7
P4 Positive and negative influence of macro environment on business operations....................7
TASK 4 ...........................................................................................................................................9
P5 Internal and external analysis for identifying strengths & weaknesses.................................9
P6 Interrelationship of strengths and weaknesses with external macro factors.......................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
.......................................................................................................................................................14

INTRODUCTION
Business environment means a collection of external and internal factors that effects a
business's operating situation. These factor includes different aspects considering suppliers and
customers, owners and rivalry, government and laws activities, enhancements in technology and
economic, social and market trends (Business Environment, 2018). This assignment is based on
three types of business including private, public and voluntary. In the development and growth of
economy all those organisations are play vital and effective role. In this chosen organisation is
Coca-Cola. Types, purpose, scope and size of three organisation with its legal structure are
determined in this project. Organisational functions and their relation with its structure and
objectives are also analysed. Internal and external sources of the company and their relation, it
influence on the business decision making which is also described in this study in detail manner.
TASK 1
P1 Different types & purposes of business organisations
There are different kind of business entity available which play vital and effective role for
the development and growth of economy. In this some of the companies are profit seeking and
some are non-profit enterprise (Reed and et. al., 2013). All these are vary due to their
environment, cultures and structures along with the business line. Private, public and voluntary
sector with its examples are determined as below:
Private: These businesses are run and owned by private individuals. There are some examples of
this sector including franchises, sole traders and partnership. Main aim and objectives of this
sector are growing their business operations, making profit, maximising market share and sales.
In this chosen private organisation is Virgin Group Ltd, overview and purpose of these business
are explain as below:
Overview of Virgin Group Ltd: It is one of the leading investment business along with
the international originality and appealing brand image (Reinhardt and Stavins, 2010). This
company was founded by Sir Richard with motive to increasing market share.
Purpose of Virgin Group Ltd: Main aim and objective of company is to increase the
welfare and development of society by rendering quality in telecom services and products at
affordable price.
Legal Structure of private company:
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Sole Trader: It is type of one-person enterprise, usually analysed in trades where only
minimum amount of capital is needed in order to launch.
Partnership: It is a agreement between a two or more persons to form an organisation for
accomplishing a common objectives. In order to overcome may of the issues of a sole trader, a
partnership business may be established. In this business minimum 2 and maximum 20
employees are working with motive to share their profit and loss. Advantages and disadvantages
of partnership:
Advantages Disadvantages
 Two heads are better than one.
 Someone to offload to.
 Better decision-making.
 Cost effectiveness
 Stronger financial power
 Financial problems.
 Slow decision-making
 A partner’s mistakes reflect on you
 Not suitable for all temperaments
 Dissolving a partnership is hard.
Limited Company: A limited company is a kind of business structure which has been
incorporated or organised into a lawfully distinct body or ‘person’. (Shigang, 2010). This type of
business needed some kind of licences. Such enterprise is monitored by the board of director. All
limited companies must pay corportation tax, but you may also be elligble for other types of
taxes including VAT, PAYE, Capital Gains Tax and National Insurance Contributions. Once
limited company is organized, they will require to register for corporation tax. Such kind of
requirement to be finished within three months. Limited companies are divided into two parts
which are determined as below:
Company Limited by Shares: For a company limited by shares, the liability or obligation
of the members is restricted by the Memorandum of Association to the minimal amount of
his/her part or so much which remains unpaid.
Company Limited by Guarantee: In this, the liability or responsibility of the members is
controlled to the measure of susceptibility undertaken by each and every of the members in the
Memorandum of Association. Thence, the Private Limited Company members – Limited by
Guarantee and they cannot held responsible for an sum higher the measure of guarantee which is
seized by the member in MOA (Memorandum of Association).
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Public: Public company has government as stakeholder of more than 50% in stakeholding. In
these companies governmental parties also take part in decision making and has right to vote in
general meeting. Main purpose of motive of this sector is to provide essential services and to
utilise optimum resources well for the development of the community. In this selected public
company is Coca-Cola, purpose of introduction of company are explain as below:
Overview of Coca-Cola: It is a type of Beverage industry which was founded by the John
Pemberton. The company is best known and well-established for its flagship products. They
provide different beverages and services to the clients with motto to increase customer base in
the organisation.
Purpose of Coca-Cola: Main and foremost purpose of the company is to provide
effective services and utilise proper resources with aim to develop growth and success of society
(Karagiorgos, Drogalas and Giovanis, 2011).
Legal structure:
Central government: Central government has different authority and power which is
designated at different level.
State government: It is a type of government which assist in functioning or performing of
organisation activities and operations via state agencies.
Local government: These type of legal authority manage entire function of enterprise
related to handling of public sector. They perform or work at local level including in home
country.
Voluntary: It is a type of groups or organisations which are not run by any single person.
All the same, some will be liable for seeing that it sets budget and targets and does what it is
fixed to do. Main aim and purpose of these business is to provide healthy and better services to
the needy people. One of the main example of voluntary sector is Oasis Charitable Trust.
Purpose of these business are shown as below:
Overview of Oasis Charitable Trust: It is a type of Charitable enterprise, it was
established by Steve Chalke in 1985. They provide their services for national governments and
local authorities as well as self funded initiatives.
Purpose of Oasis Charitable Trust: Purpose and objective of these business is to
providing services for those family of charities who now functioning on four continents
including education, training, delivering housing, healthcare and youth work (Kolk, 2016).
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Growth of the international business environment: International business serve substantial
potential returns and risks from an business perspective. Growth of these business is mainly
depends on to Acknowledge the analysable factors that may effect an organization’s strategic
decision in order to to expand their business operations internationally.
P2 Size and scope of different types of organisations
Size of scope of the each and every organisation is different which is necessary for the
development and progress of the economy. Thus, scope, size, mission, vision, products and
services and stakeholder of Coca-Cola, Virgin group and Oasis Charitable Trust can be
determined as below:
Coca-Cola:
Background: The business organisation is best known and famous for its flagship
product. Coca-Cola was invented by pharmacist John Stith Pemberton in 1886 at Atlanta,
Georgia. It is type of beverages industry that provide different number of products to the
customers. Net income and total assets of the organisation are US$1.248 billion and US$87.896
billion.
Size: Coca-Cola is an American corporation, marketer, manufacture and retailer of
nonalcoholic beverages concentrates. It was invented by the John Pemberton in 1886. In 2017
approximately 61,800 employees are working with motive to maximise their turnover as well as
gain competitive benefits within predetermined period of time.
Scope: It is another important part which define the scope of company at international or
global level. Coca-Cola has widest portfolio in beverages industry including 3300 products
(Nishitani and et. al., 2012). They provide different products such as fruit juices, water, energy
drink, coffee and tea etc. Another scope of their products including Thums up, Fanta, Maaza and
many other. Services of the company is to receive and manage complaints of harm from the sales
outlet of Cold Drink products.
Mission: “The company mission is to keep being number one selling coke in the globe
and to maximise their income, the same way they have complete in their past years”.
Vision: Vision statement of the Coca-Cola is “to be the leader in the Beverages
Industry”.
Business Objective: Main objective of the company is to gain maximum amount of the
capital and achieve long term goals and objectives within predetermined period of time.
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Stakeholder: In Coca-Cola, there are different stakeholders are work with motive to
improve business performance and effectiveness at international level. There are different
stakeholders of Coca-Cola including Employees, customers, consumers, governments etc.
Virgin Group:
Background: Virgin Group Ltd. is a British multinational organisation venture capital
combined supported by entrepreneurs Sir Richard Branson and Nik Powell. Date of
incorporation of Virgin Group's is recorded as 1989 by Companies House. Virgin's business and
trading activities date to the 1970s. The net worth of business organisation was figuring at £5–
5.5 billion as of November 2014. They provide different products such as Banking Books
Commercial aviation, Commercial spaceflight, Consumer electronics, Films, Health care,
Internet, Jewellery, Mobile phones, Music, Radio, Retail and Travel.
Size: Virgin Group is well-established leading investment enterprise with the
international brand image (Osterwalder and Pigneur, 2010). This business was invented by the
Sir Richard Branson with aim to provide effective services to the customers. This company is
operating or running in over 50 countries beside with more than 50000 workforce.
Scope: Company has different and large scope in the different area of products and
services including mobile telephony, Music, travel, Holidays, leisure, financial Services and
health.
Mission: It is another important part which is related for the company, mission of the
business is to be the shopper victor, by delivering brand values like value for currency, superior
quality, pioneering etc.
Vision: Vision statement of the Virgin Group is We are planning a global presence in
travel, entertainment retailing, mobile communication and music.
Business Objectives: Main and foremost objective of company is to provide better
quality in its products and service for betterment of community.
Stakeholder: The stakeholder of Virgin Group includes suppliers, customers, investors,
employees, government along with public and many other. All these are essential for the
sustainable growth and development of company (Osterwalder and Pigneur, 2010).
Oasis Charitable Trust:
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Background: Oasis Charitable Trust is also known as Oasis, it is a Christian registered charity in
UK. It was founded in September 1985 by the Reverend Steve Chalke. It had been assistant
minister at Kent, Tonbridge Baptist Church, for 4 years. Oasis business now has over 5,000 staff
members in the United Kingdom as well as one thousand more volunteers.
Size: It is a type of non-profitable and charitable business. This entity was founded in
1985 by Steve Chalke. They has 5000 employees in the United Kingdom as well as 1000 more
volunteers.
Scope: They provide different services including anti-trafficking, healthcare, churches,
youth work, education and many other. So scope of the company is large (Pikka, Iskanius and
Page, 2011).
Mission: To transform communities by developing access to housing, addressing
homelessness and travelling with people as they accomplish their God-given potential.
Vision: A place where each and every person is included, making a contribution and
reaching their God-given potential.
Business Objective: Main objective of these business is to provide effective services to
the need people and improve their performance internationally.
Stakeholder: In the non-profitable organisation there are some stakeholders are work
including Volunteer families, clients, Donors, community, partners and so on.
Shareholder Analysis: It is known as an impressive activity of assembling and studying
quantitative information in order to determine whose occurrence that should be appropriated into
account when utilizing and processing a system and policy. Some number of stakeholder that are
impart their entire efforts in operations of Coca-Cola such as employees, governments,
Customers, capitalist etc. For this, needs of management is to prioritize company people as per
its curiosity of business entity are as below:
 High power – fascinated people
 Low power – less fascinated people
 High power – less fascinated people
 Low power – fascinated people
Objectives differentiation:
Micro Small Medium Large
Business that for the Organisation under Business entity which Under this business
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most important part
develop income
maintaining in mind
the last point to
survive goes in this
parts like: little outlets,
shops etcetera.
Objective of the
business is to
maximise their profit
by providing accurate
products and services
to the people. Size of
this business is 2 to 5.
such segment bargains
in different zones and
attempt to
communicate items
and manage to
customer so that to
gain large amount of
money. Like:
consultancy business
entity which is having
about 10 to 50
representatives. Main
purpose of this
business to increase
their growth and
success in an effective
manner. Size of this
organisation is less
than 50.
is working and
functioning together at
the level of residential
and putting
undertaking so that to
expansion should be
accomplishable and
concern can acquire
ready worldwide
market. Size of this
entity is less than 250.
enterprise expressed
that are working or
functioning with each
other at global level.
These business under
this sub parts conveys
primal point and
individual rationale is
to win large number of
benefits. This business
organisation support
the organisation to
increase their
digitalisation which
support the
organisation to
maximise their sales as
well as save their time.
Size of this
organisation is more
than 250.
Scope: Scope of SME's and large organisation is more large at the international and
global level because these organisation are provides large number of the opportunities to the
unemployed people by providing job. It also support the organisation to maximise their strong
position at different level in an effective and efficient manner. Objectives of small, medium,
large and micro company is to gain profit as well as accomplish their long term objectives and
goals easily. SMEs are the lifeblood of different economies. On mean, they correspond over 90%
of organisation and account for 50-60% of employment at a domestic level.
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TASK 2
P3 Relation among different organisational functions and their link with objectives & structure
In Coca-Cola, there are different departments are work and have various functions which
are determined as below:
(Source: Organisation Structure of Coca-Cola , 2018)
Human resources department: HRD in the Coca-Cola has different functions including
workforce planning, recruitment and selection, performance appraisal, training and development.
All these functions are support the business manager to motivate and encourage their entire
workforce (Pulver, 2012). It benefited to the business to achieve their long term goals and
objectives in limited time period. This function mainly related to the function based structure of
company because in this various functions are included like human resource, finance, marketing
and other.
Marketing department: Marketing manager of the Coca-Cola has different roles and
duties to investigate about the marketplace and customer preference regarding beverages. These
type of information assist the business to satisfy needs and wants of the customers. Thus, it is
important for the business to enhance their profitability as well as accomplish predetermined
goals easily. This functions is mainly related with consumer based structure of company.
Therefore, it help to identify all requirements of clients in an effective and efficient manner.
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Production Department: It is another main department in Coca-Cola which has different
roles to produce effective quality in their beverages to the customer according to its needs.
Production manager provide these information to the marketing manager in order to make
variation in the taste and choice of their beverages (Avramenko, 2012). Thus, it is essential for
the business to attract different number of buyers and attain their targets and objectives within
preset period of time. This function is mainly related with the product based structure of
enterprise because in this all products and services are classified as per the needs of clients.
Financial department: Finance manager of the Coca-Cola has various roles and
responsibility to prepare a finance budget in an effective manner. These will support in proper
allotment of capital to other departments as per their needs. This department is direct related with
marketing department to follow modern advertisement techniques and production manager
follow advanced equipments. Thus, all these departments are interrelated with having common
purpose to accomplish goals and objectives as well as gain maximum amount of the capital. This
functions is related with Pre-bureaucratic structures because in this leaders make entire decisions
about arranging accurate amount of capital.
TASK 3
P4 Positive and negative influence of macro environment on business operations
Macro environment consider as the external factor of the company i.e. PESTLE Analysis.
These factor highly effects on the decision making of manager about to expand their business
operations and functions in different or international level (Bovee, Thill and Raina, 2016). Thus,
PESTLE Analysis of the Coca-Cola and their negative and positive impacts are determine as
below:
PESTLE
Analysis
Introduction Positive impacts Negative Impacts
Political Coca-Cola is also matter to
the Occupational Safety and
Health legislation as well as
to state, local, foreign and
federal, environmental
legislation. There are some
If all such legislation are
benefited to the of
enterprise then it has
positive effects on
business performance. For
ex., Cola-Cola follow
High taxation rate
and tight export
and import policies
have that have
unfavourable
effects upon
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factors that effects on
business operations including
Occupational Safety and
Health legislation to keep
quality of their beverages.
business operations
of Coca-Cola.
Economical Staggering fall down in soda
consumption or usage in the
broader United States market
have unluckily injured Coca
Cola income with the
organization about income of
US$41billion in year 2016, its
worst since 2010.
Preparation of evaluation
report that assist to collect
cognition about inflation
rates and various levels of
income (Cavalcante,
Kesting and Ulhøi, 2011).
It support to become
positive effect.
Minimum level of
income of peoples
that has direct
effects on the
demand and supply
of their beverages.
Social The macro social environment
can include variation in
people’s lifestyles, labour
composition, fashion, social
mobility and many other
demographic trends that have
the actual to either exist Coca
Cola or avail possibility to
them.
To determine positive or
favourable effects that
want to examine the
behaviour of target and
potentials clients, it assist
to improve their revenues.
Poor level of
education among
peoples that has
unfavourable effect
on business
profitability and
performance.
Technological Coca Cola, this modifying
retail landscape gives
unbelievable innovative
possibility to make stronger
relationships with their
wholesale or retail consumer,
many of whom are now meet
a click’s range of tendency
from their drinkable brands.
Application of innovative
techniques including
internet, e-commerce and
many other tools that
supports in marketing and
increment of revenues. It
assist to make direct
connection with clients.
Use of out-of-date
techniques reduce
the products and
services quality
which has
unfavourable effect
on goodwill and
image of company.
Legal Coca Cola is presently the Following Occupational If not following
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matter of a legal proceeding
area in a California zone court
by non-profit team Praxis
Project. The cause say that
Coca Cola purposely deceives
user, misleading them
regarding the health hazard of
drinking syrupy drinks and
sodas.
Safety and Health
legislation by Coca-Coal
that supports to analysis
the trust and believe of
clients towards their
functions and activities
(Hair, 2015).
these type of
legislation then
lawful punishment
are faced by Coca-
Cola. This will
have untoward
effect on
profitability and
effectiveness of
company.
Environmental The Coca Cola Company
acknowledge the actual trends
in users and legal authority
demanding companies to
maximise waste recycling.
But environmental groups
such as Friends and
Greenpeace of the Globe have
criticized business proposal
calling it simply ‘PR spin’.
This factor assist the
business to work with the
development and welfare
of society. It assist
business to maintain their
strong position globally.
Sometime
Environments rules
and regulations of
the government is
highly effects on its
brand image.
TASK 4
P5 Internal and external analysis for identifying strengths & weaknesses
Internal and external factor is identify the strengths, weakness, threats and opportunities
of the company which are determined as below:
Strengths Weaknesses
 Coca-Cola is well-being and number
one beverage industry in terms of
sales.
 Focus on Carbonated drinks.
 Health issues as well as negative
publicity.
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 Large number of products are produce
including Fanta, Limca, Minute Maid
and many others (Hamilton and
Webster, 2015).
 Coca-Cola has long and strong
organisation with global sports
sponsorships, events etc.
 Sluggish performance in North
America.
 Lack of diversification
Opportunities Threats
 Acquiring other business can
strengthen business place in the other
industry.
 To expand their business operations
and activities internationally.
 Diversify their product portfolio or
functions by coming into snacks sector
to compete with their rivals.
 Difficulty in complying with various
regulations and norms which are
formed by the government in different
countries.
 Strong rivalry can lead to minimised
market share.
 Health awareness amongst people
ignoring aerated beverages can
unfavourably impact on Coca Cola.
All these are highly effects on the decision making of company regarding expanding their
business operations and activities. In order to introduce their innovative products and services to
the customers, manager take an appropriate decision which support to maximise their sales and
revenues (Reed and et. al., 2013). Thus, it will also support to accomplish their long term goals
and objectives within predetermined period of time.
P6 Interrelationship of strengths and weaknesses with external macro factors
Weakness and strengths of the company is mainly related with external factor that highly
influence on the decision making ability of company. PEST Analysis and internal factor of the
enterprise are determined as below:
PEST Analysis Introduction Interrelationship with
Strengths
Interrelationship with
Weakness
Political Pricing policy and Main strengthen for High pricing policy
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competitive product
pressures and quality
to keep or gain share
of sales in across the
world compared to
rivals.
this factor for the
organisation is to
expand their business
operations and
activities
internationally
(Reinhardt and
Stavins, 2010).
impacts on the
business operation and
activities in different
way.
Economical They used the loans
for R&D (research and
development) on
innovative products to
gain on in a powerful
2002 economy.
Presently, as
international growth
and progress is
slowing, company
may be observing for a
similar possibility.
Coca-Cola has better
business operations
and activities in Asia
where economic
premise is effective.
This will become
strength point of Coca-
Cola.
Maximum
international exchange
tax rate in few nations
influence the
profitability and
performance of Coca-
Cola.
Social The number of people
in the United States
are viewing
maximising curiosity
in healthy or better
lifestyles. That has
powerfully effected
the income within
non-alcoholic
drinkable industry as
Coca-Cola has long
and better organisation
with global sports
sponsorships which is
main strength of the
company and
benefited to the
welfare of society
(Shigang, 2010).
Lack of diversification
that effects on the
preference and choice
of the customers
towards business
products and services.
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many clients switch to
diet colas and bottled
water such as Coca-
Cola Light or Zero.
Technological The efficiency of a
business's advertising,
promotional and
marketing, programs
—For instance,
television, social
media advertising and
web are perpetually
developing.
Technological factor
highly support the
company to innovate
their new products and
services through
television, social
media and many other.
Higher technology
maximise cost of the
beverages production.
That will influences
accurate pricing
policies of Coca-Cola
and effects on their
profitability.
As per the above mentioned report it has been determined that PEST analysis is more
important part for the business to identify different factors which impacts on the business
performance and profitability. It will includes different factors such as political, economical,
social and technological. All these are interrelated with the strength and weakness of company.
In cause of technological factor that highly influenced on the performance and motivation level
of employees. Political factor has different rules and regulation which is not easy for the business
to fulfill all legislation so that it negatively effects on profitability of organisation.
CONCLUSION
From the above mentioned report, it can be concluded that internal and external part of
environment are highly effects on the business performances and productivity. All business
entity has different size, scope, legal structure and types that highly impacted on effectiveness of
organisation. Different functions of organisation that are interrelated with the objectives and
structure of company. There are two factors such as micro and macro that impacts on decision
making ability of company while expanding their business operations and activities
internationally. Both PESTLE and SWOT analysis of the enterprise are interrelated with having
Common purpose to maximise their sales.
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REFERENCES
Books and Journals
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