Business and Business Environment: Organizational Analysis Report

This report examines the business environment, focusing on different types of organizations such as startups, sole traders, partnerships, companies, franchises, and charities, and their respective purposes and sizes. It explores the relationship between various organizational functions like production, sales, marketing, and development, and how they contribute to corporate objectives and structure. The report also investigates the positive and negative impacts of the macro environment on business operations, supported by specific examples, and conducts internal and external analyses to identify strengths, weaknesses, opportunities, and threats. Furthermore, it highlights how these strengths and weaknesses interact with external macro factors, providing a comprehensive overview of the business environment. The report includes an introduction, analysis of different organizational structures, and a conclusion summarizing the key findings, with references to support the information presented. It is intended to provide insights into how businesses operate and adapt to market dynamics.

Business and the Business Environment
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Introduction:....................................................................................................................................3
LO1:.................................................................................................................................................3
P1. Different Type and Purposes of Organizations:........................................................................3
LO2:.................................................................................................................................................7
P3: The relationship between different organisational functions and how they link to corporate
objectives and structure:..................................................................................................................7
LO3:.................................................................................................................................................9
P3: The positive and negative impacts the macro environment has on business operations,
supported by specific examples:......................................................................................................9
LO4:...............................................................................................................................................11
P5: Conduct internal and external analysis of specific organisations to identify strengths and
weaknesses:....................................................................................................................................11
P6: Strengths and Weaknesses interrelate with external macro factors:.......................................12
Conclusion:....................................................................................................................................13
References:....................................................................................................................................14
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Introduction:
Initially when a business starts and slowly it operates the market then different type of
promptness begins to affect the business and create trouble to achieve the expected outcomes.
During the starts, a new operation, macro and micro environmental factors affect the industry.
Therefore a unique plan is needed to generate that reduce the negative impact on the process. To
make this happen, a company should try to identify its weakness, strengths, opportunities, threats
by other companies and according to them it should develop a strategy. This project is intended
to highlight different aspects of the business environment.
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LO1:
P1. Different Type and Purposes of Organizations:
In today’s world, many big corporations and various organizations formed to offer a better life
choice to the human being and improve our society technically. In the world of business there are
some common types of organization working for the industrial market which are given below:
 Startup
 Sole trader
 Companies
 Partnership
 Charity Organization
 Franchise
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Startup
Partnership
Sole trader
Charity
Organization
Companies
Franchise

Different Type and Purposes of Organizations
(Source: Ward, 2014)
Start-Up: The term startup is not a business or a manufacturing company for a particular
product; it is a newly grown-up business strategy for an entrepreneurial venture. Its aims to find
a recently develop marketplace for people facing an issue in their life. Although it is very risky
project because this business deals with new market problems and the success rate of this type of
project is very less. However once the business got success the profit amount will go to a very
large amount. This business needs innovative skills that can use their skills to find a solution of
the modern newly developing issue. The co-founders of this business are mostly college
students, engineers, hackers, web developers etc. However that doesn't mean that only this
profession have a future in this field, whoever has innovative thinking and problems solving
skills with a different approach can create a carrier in this field. Meanwhile, it has a negative
point, every business needs an investment, in other business as their success rate is quite as
compared to the start-up business, the investor is easily shown their keen interest to invest
another type of business rather than stat up marketing as the risk factor is more significant. The
initial funding is an enormous problem, and that is the main reason to drop the business idea by
many of students. However the country like U.S.A, U.K, China, Russia, and many other
economically country have an excellent market for the start-up business, many investors are
easily approachable and can invest their money for a perfect business plan. In India the market
yet developing and take several years to come up.
Sole Trader: One of the most native cultures of the business is the sole trader, and it involves in
a wild range of activates, which includes mobile filters, mechanical work, electrical work
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plumbing and many more, throughout the world. A significant portion of a sole trader is using in
construction marketing business and also use in finance and catering business. No complicated
paperwork and document it requires to establish a single trader business, and every conclusion
can be made in no time. However for Business-related problems a close confidential contract can
be made between the customer and employees. A good advantage to this business is that all
profit goes to the sole trader that makes help to build a strong foundation and expand own
business in the market. However, every business management system has a positive and negative
portion and in this business too. All the essential decision makes on own and may have to try
work hard and a longer time. The company requires management skills and bargaining power
and also strong communication skills with customer. Being a sole trader, make once a great
responsible person that helps to survive to deal with the modern market and all the investment
have to provide the own businessman. As a sole trader, the business makes once a jack of all
traders. In other countries including India, the sole trader is a successful business and makes the
profit to the businessman. However, the necessary fund could not often be provided many times,
and the problem is yet to be solved.
The Partnership: the partnership business can be done between two to five people but
nowadays in online trading market policymakers are up to thirty people, due to the Partnership
Act 2002, which means at a time some multiple people can access and control the business. It
also has many advantages and as well as some disadvantage too. People in partnership can share
their idea, business strategy and divide the workload among them. This helps to raise the capital
needed for the business. For example, a group of people create a contain writer group, somehow
one of them get injured or have some illness, then the particular person's workload can be
divided by other writers. Partnership business contains a multiple calculate issue, like the total
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profit, is going to be shared among the total employees and who are going to gain a required
amount as they work, this issue can generate a real-time problem in this business. However, the
only disadvantage is that the internal conflict between the partners, which may harm the
company. Thus starting Partnership business, one should have an out an out believe and
confidence in their partner.
Companies: The Company should hold by the investor where the administrator of the
organisation gives the direction of the business. The initial decision made by the chief
supervisory officer of that company and a specialist group of the member will be assigned to run
the company in support of the chief executive board. The shareholders put fund into a particular
company to buy its share and invest it into share market to increase the amount of profit. Limited
responsibility plays a role in protecting the company's shareholders. Every company should be
registered with the company house and should contain an official address; nowadays it is
mandatory for any company to hold its domain and official website because now most of the
business deals occur in online platforms. The limited type of company has Ltd logo after their
name. Ltd means the company is smaller than the privet companies. In private company, share
can only be bought and sold with permission of the boards of directors of this company hence it
is clear that the shareholders have fewer controls in the percentage in comparison to the boards
of directors.
Franchising: Organizations made massive part of retail seals today which operating under the
guidance of franchise like Subway's which now create its big franchise all over the world. It's
become more and more famous and gain more popularity among the people involving the
business world. Franchising maintains a particular business strategy, actually its use the brand
names of the different company which is already famous. A franchise gives the authorisation to
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sell a product and trade under a particular area. The company selling the franchise is called
franchisor and a person compensate for the franchise is called franchises. The franchise makes its
benefit under a well-known brand or company and benefits from a local monopoly selling.
Usually, franchisor provided the needed training. Most of the profits are taken by the franchise
people.
Charity Organization: The charity Organization runs by publically or privately, and it is a
nonprofit trust. Charities are mostly centred on some particular religion, social activates, related
educational matters. Depending upon the location, all the legal issues are decided, and tax
purpose settled. As stated it is a nonprofit organisation, but due to some unwanted authorisation,
the charity makes the profit from the market. However, most of the charity funds run their
charity to prevent lousy culture in society and improve the educational system in India. A good
religion society can help to establish a charity organisation (Businesscasestudies.co.uk, 2018).
P2: The size and scope of a range of different types of organisation:
Sole Trader: According to the business market it is a small business to create self-employment
which means the single trader business helps once to organise its work. Thus the person has not
to go outside looking for another job. The company makes a country economically strong and
gives partial freedom from depending on other countries. The sole trader can be provided with a
duty to private individuals as well as a big company. Having a simple structure of the organiser,
industrialist brings its capital. The entrepreneur is only responsible for the company's success as
well as its failure.
Companies: The Company is an organisation, may contain a large number of shareholders. In
these companies, every shareholder invests a particular amount of share into the market. The
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investment amount may be depended on various factors, as it depends on the company's
exposure, how big the company is, the number of the investor in that particular company and
how big its product market. Above all the mention factors, the investment money fluctuate.
Franchise: Franchise is work as a medium between the customers and the leading company or
the leading brand. It is a system where an investor can distribute majors companies product like,
for Coca-Cola Company, all its products distribute by a franchise to the ordinary people, but
franchise distributes companies products in a substantial amount. In the U.S.A franchise is the
leading economic powerhouse and spared all over America. One of the ten retail businessmen is
work as a franchise, and almost eight million people work for them.
Start-Up: As the business is now developing and yet to become a significant market value, it has
a limited scope and opportunities for people. It is nothing but to create an own business. If one
has individual thinking ability and proper market strategy, have success in this business and
make a lot amount of profit better than other company. Also Patience and continuously
investment required for this business.
Charity: It is a type of nonprofit organisation, which runs from charitable funds given by others
and government. Mainly it often depends on donation, if someone interest to help and solve the
social causes, then it is recommended to those people (Wong, 2014). However, profit from the
market is almost nil, but sometimes government gives that a particular charity a recognition that
could help individual only.
Partnership Business: The business runs by two or multiple people, and in such activity, the
partners have unlimited freedom from the debates incurred by the businessman and more
responsibilities. The three most profit full partnership is the limited partnership, general
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partnership and limited liability partnership. In this business important decision takes by all the
partners. As this business is running in small size, the business structure is the straightforward
and less complicated procedure.
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LO2:
P3: The relationship between different organisational functions and how they link to
corporate objectives and structure:
For maintaining a proper balance and effectiveness, it is mandatory for any market to have
separate stream such as production management, seals, marketing and development in a
particular organisation. Being retail-based organisation most of the company has the various
department for its business like for marketing, promotion, management, IT department and many
more (Shaikh, 2016). All of that business-related function helps them to maintain their balance
sheet and improve in a market by earning more amount of profit. It is also essential to establish a
relationship between their function to survive in the market. Nowadays all those monition
organisations linked up to the other organisation. For example, to promote a product a company
needs the help of charity trustees to build a right image about its brand as well as its product and
the charity helps to a particular brand for earning an amount of money regarding donation.
Logically all the different organisation is connected with each other with a unique bond, and
none of them can progress without each other. Every organisation must undertake six essential
factors to increase its sells their product in the market. Here the vital functions are given below:
 Design and Production: For presentencing and selling a particular type of product, it
must promote good and looks good from customer's point of view. The design and
production attract customers for the products.
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 Finance: A particular amount of amount should invest in every product. The amount,
which is funded, entirely depends upon the product and its trend. So required amount of
money should be financed as its necessary.
 Human Resource: The head of all departments is the Human Resource management. It is
the only crucial factor for running a business, for that every company have this
department. HR department controls investment procedure, and employees workshop
maintains the quality of the product and retail demand for the product in the market.
 Sales and Marketing: Sales and marketing team looks after company’s every investment
and seals report of product. It promotes every product through online as well as offline
process, brings the investor to the company for product investment.
 Administration: This department helps to bring the company's image in front of the
public. They organise various types of social arrangements to promote socials causes.
The primary responsibility is to convey the issue related to employees to the managers.
 Research and Development: Day by day the market demands are increasing rapidly. To
compete against other companies and survive to the market, for a company it is necessary
to build an active research group. It helps to use the new technology for developing a
better product or inventing a new product for the customer.
Every corporation has to work together because they all have the same aims, objectives and goal
for future progression. All employees have to work together and share the workload between
them, share the ideas and creativity. Thus with the help of such employees, a company reach the
top of the success. To begin with, this type of communication system is the creation of a clear set
of company's goal and objectives (Pine, 2009). These objectives need to be broken down further
into more specific objectives for each function. It's a daily basis observation that how each
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