Business Environment

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Organisational types with purposes, legal structure as well as stakeholders...................1
P2 Explain the size and scope of a range of different types of organisations........................3
TASK 2............................................................................................................................................7
P3 Explain the relationship between different organisational functions................................7
TASK 3............................................................................................................................................9
P4 Identify the positive and negative impacts the macro environment has upon business
operations...............................................................................................................................9
TASK 4..........................................................................................................................................11
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses.....................................................................................................11
P6 Explain how strengths and weaknesses interrelate with external macro factors.............13
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
The term business environment consists both internal and external factors which can
impact to business operations and activities. This is essential for companies to make their plans
and strategies as per environmental condition. In the environment, various kind of factors are
included such as political, economic condition, social factors and many more. Thus, it is
important for companies to run their operations as accordance of environmental aspects (Bah and
Fang, 2015). In order to address various tasks of project report a company is selected which is H
& M retail clothing. The company is involved in manufacturing of cloths and located in 62
nations with more then 4500 stores all around the world. The report is based on North west
London chamber of commerce which helps to companies in becoming more successful. The
project report covers about various types of organisations along with their size and scope. As
well as interrelation of different functions of organisation are included. Further part of project
report covers about strength and weaknesses of a particular selected business entity.
TASK 1
P1. Organisational types with purposes, legal structure as well as stakeholders.
In the terms of ownership, organisations are categorised into different types which have
various scope, objectives and stakeholders. Mainly, the organisations are evolved by individual
or group of individuals which are controlled by them. Herein, below some types of organisations
are mentioned that are as follows :
Organisation- It can be defined as a group of people who work together with common purpose
and objectives. There are different forms of organisations such as:
Public sector organisations – The public organisations can be defined as those business
entities which are not controlled and managed by any particular individual. These organisations
are controlled by government which can be central or state (Belás and et. al., 2014). In this
aspect, a company is selected that is National health service. This company is located in United
Kingdom and provides heath services to general public.
 Goals – Main goal of the public organisations is to helping those whose income level is
lower and can not afford basic services. Such as the purpose of NHS organisation is to
providing basic healthcare services to general public at lower price. Basically, these kind
of companies do not focus on increasing market share or growth because they do not
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want to earn profit. This is so because their funding is done by government and
employees serve on a permanent contract with higher pay-scale. Objective- The main objective of public sector organisations is to ensure overall
economic development of nation in which they are operated. Such as the objective of
NHS is to ensure about better health management in the aspect of United Kingdom. Legal structure – The legal structure of public organisations consists ownership of
central, local or domestic government. In broad sense, the government of any particular
nation sets the rules, regulations and policies to operate businesses successfully without
intervention of any private entity. Such as in NHS, their legal structure comprises
ownership and control of central government of United Kingdom.
 Stakeholders – Key stakeholders of this company are general public, government and
financial entities. Apart from it, there are no any other stakeholders of public
organisations. It is so because they do not deal with any external stakeholders because all
functions are managed and controlled by government.
Private sector organisation – The public sector organisations are those business entities
which are operated by private parties. Basically, main objective of these organisations is to
earning higher amount of profit by attracting more and maximum customers (Belás and et. al.,
2015). As well as these types of organisations can be categorised into three types which are sole,
partnership and private. The sole properties businesses are controlled by individual while in the
partnerships there are two or more individuals who perform any legal activity in order to gain
profitability. In the aspect of business environment, most of companies' ownership is private.
Such as in the United Kingdom some major private organisations are ASDA, tesco plc, Mark and
Spencer etc. Herein, the aspect of project report a company is selected which is H & M clothing
company.
 Goals– Main goal of private sector organisations is to making a strong brand image in the
competitive environment so that higher number of customers can be attract. As well as
these kind of organisations want to achieve maximum amount of profit over the expenses
or investment of cost. Such as the purpose of H & M clothing company is to increasing
their market growth and share so that level of profitability can be increase.
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