Business Environment

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Purpose of Public, private and voluntary sectors and their legal structures...........................3
P2 Size and Scope different types of organization......................................................................4
P3 Interrelationship between different organization function and their impact..........................5
P4.Evaluation of positive and negative impact of macro environment on organisation.............6
P5. Internal and external analysis of Organisations in order to identify their micro factors.......8
P6. Inter-relation of strength and weakness to macro factors......................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment refers to internal and external factors that state how company is
affected by functions including employees, suppliers, management, demand and supply in
business. Burberry is British fashion luxury house which designs trench coats, foot wear, eye
wear, leather goods, perfume and other accessories (Cai, Li and Cai, 2019). Company was
founded in 1856. This report is analysed about different purpose, size and scope of different
organization and also examine the relationship between organizational function. This report
analyse the internal and external enterprise in identifying strengths and weakness, also how they
are interrelated with external environment.
P1 Purpose of Public, private and voluntary sectors and their legal structures
Public company- Companies who have instrumented to sell its registered securities to public. In
this company they have stakeholder, public shareholder and also including administration and
the board.
Legal structure of public company is basically owned by government. It delivers their goods and
services to public sector including military, police, public infrastructure, these are very useful for
social benefits.
For example, Burberry is plc which deals in footwear, perfume etc. (Čepel and et. al., 2018). It
has numerous stores in many countries.
Private company- These are profit based organizations. The company is generally owned by
specified group or individuals. In private company for developing countries to make more profits
they have to make use of required source for growth.
Legal structure, it is either owned by sole proprietorship or having partnership in same business,
and they have limited number of shares for their organization and they have self-directed legal
structure (Eom, 2020). Private company shares are being forbidden by public commerce.
For example, H&M is private limited company is known for its fast fashion including clothes for
men, women, children and teenagers. Which operates in many countries.
Voluntary company- This company are for social welfare which do not have main focuses on
earning profit (Hamilton and Webster, 2018). There purpose for developing benefits for society
without enriching any profit in return and helps in rising their society.

Legal structure, this comes under government social welfare, and they have chained for helping
people from different countries.
For example, cancer research UK is a charity firm. Their main aim is to aware people about
cancer and world largest independent cancer research activity.
P2 Size and Scope different types of organization
Characteristics Micro enterprise Small enterprise Large enterprise
Definition This enterprise has
business with small
finance with very less
employee and their
turnover is less than
convinced measure.
The small enterprises
start their business
with certain amount
and in developed
countries they have
many shares in market.
Large companies
whose firm is
traditionally been less
taken by short term
changes in economy,
that have seen
impressive changes in
their business.
Size The employee count is
low as their initial
investment is very
low.
They have small
number of workers
and do not have high
number of sales
volume.
Employers is more
than micro and small
enterprises
(Williamson, Luke and
Furneaux, 2020).
Business growth in
merging with small
business is successful.
Scope In many developed
countries it covers
wide range of activity
with less required of
technology (Cai, Li
and Cai, 2019). This
enterprise founded to
This enterprise is
owned either by
partnership or sole
trader succession of
business, and they
have opportunities for
developing their
These companies are
multinational company
ad earn very huge
amount of profit
margin in return. It
operates in developed
countries to open their