Unit 1 Business & the Business Environment ( Pass Criteria)

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Investigation into the complete business environment of NHS and ASOS PLC...................3
Explain the relationships between different organizational functions and how they link to..6
organizational objectives and structure..................................................................................6
Analyse the interrelationships between organisational functions and the impact that can have
................................................................................................................................................9
upon organisational structure.................................................................................................9
REFERENCES..............................................................................................................................15

INTRODUCTION
The term business environment refers to various kinds of factors and forces which effects
the organization's ability to build strong positive relationships with users. Due to the effective
analysis of their own strength and weakness organizations are able to easily sustained their
goodwill in market for long time. Then after that company can easily deliver high quality goods
to users for long duration. Here the chosen companies are Cafepod and Amnesty International
and the head office of these organizations are located in United Kingdom. In aspect of CafePod,
it is a medium sized craft coffee business located in London and was found by Brent Hadfield
and Peter Grainger in 2010. The company employs a small workforce and will be contrasted with
a global NGO body known as Amnesty International which is headquartered in London. The
company will also analyse and highlight some rival companies of Tesco such as Sainsbury which
is the second largest retail chain in the UK which was founded in 1869 by John James Sainsbury.
The report will cover different purposes and types of organizations such as public, private
and voluntary sectors and legal structures. It also covers the size and scope of a range of various
kinds of organization. It further covers the relationship between different organizational
functions and how they are connected with organizational structures and objectives (Al-Omoush,
2020). Due to the effective analysis of business environment organization easily applied and
developed strong strategies for enhancing the sale of their products in low time. This report will
highlight the comparison between Tesco and one of its market rivals using tools of strategic
business analysis such as SWOT and PESTLE analysis to highlight marketing problems for the
firm to overcome.
MAIN BODY
The modern societal environment is quite diverse and when it comes to the various sectors
in which organizations are conducting their operations, private and public sector enterprises
differ majorly from one another. Some of the major differences between private and public
sector companies have been highlighted herein.
Basis Public companies Private companies
Definition The public company is a part The private company is owned

of the government and it is
owned and controlled by them
only.
and controlled by the private
investors or the founders of the
company.
Motive The purpose of public
companies is to engage the
public in the general activities.
The aim of the private
companies is to earn a high
range of profit from the public
by engaging in the operations
of business.
Source of capital The capital of public
companies is raised from the
public offerings such as tax
collection, treasury bills, etc.
or may take from selling their
shares and bonds to others.
The capital of private
companies is raised from their
private investors or the owners
of the company by issuing
shares and debentures or by
taking loans, etc.
Employment advantages In this sector, the companies
are providing job security,
pension schemes, and various
types of allowances to the
workers.
The private company provides
chances of promotion,
outstanding salary, tough and
competitive environment and
various types of bonuses and
other advantages to the
employees.
Stability In the companies of public
sector, it seems to be more
secure and stable if the worker
are not performing well.
But in the companies of
private sector, it is not very
secure as of the public sector
companies and leads to a
termination of the job.
Number of directors In the case of public
companies, they must have at
least two directors to form and
run the company in an efficient
But in the case of private
companies, they only require a
single shareholder to form and