BUSINESS AND BUSINESS ENVIRONMENT TABLE OF CONTENTS

BUSINESS & BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1 ................................................................................................................................................1
P1 Different types and purpose of organisations ...................................................................1
P2 Size and scope of different sizes of the organisations.......................................................3
LO 2.................................................................................................................................................6
P3 Relationship between different organisational functions..................................................6
LO 3.................................................................................................................................................7
P4 Identification of positive and negative impact of the macro environmental factors on the
organisation............................................................................................................................7
LO 4.................................................................................................................................................9
P5 Internal and external analysis of Next Plc........................................................................9
P5 How Strengths and weaknesses interrelate with external macro factors of chosen
organisation..........................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business Environment is a sum total of forces which are present inside and outside of the
organisation which have an impact on a business operation. Businesses environment can be
divided into two major parts one is an internal business environment and external business
environment (Tomaš and Radović-Marković, 2018). Internal environment of the business is
totally in the control of an organisation but external environment is not in control of an
organisation. This report discusses about three different types of organisations such as public,
private and voluntary organisations, their scope and size of the organisation.
Report also discusses about the interrelationship of the various functions in an
organisation and their link to the organisational structure. Report also discusses about what are
positive and negative impact of micro and micro environment on the business operations by
applying PESTLE and SWOT analysis. This report also discusses about strengths and
weaknesses and their interrelationship with external macro factors of an organisation.
LO 1
P1 Different types and purpose of organisations
There are three types of organisations such as public, private and voluntary organisations
which can be explained as follows:
Private organisations: Private organisations are the organisations which are operated with a
purpose of making profits and they form the part of country's economic system. Private
organisation refers to association, any person, partnership or any agency which does not come in
the public body and are operated with a purpose of achieving profits (Lyles, 2016). These
organisations are free from government control and government ownership, but also may
sometime may become a partner of government body.
Mark and Spencer is an example of private organisation, M&S is private organisation
which is operating in different parts of the world. It is the British multinational retailer store
having its headquarters in London, UK. M&S is founded by Michael Mark and Thomas Spencer
in 1884. It was the first British retailer in 1998 to make profit before tax of more than 1 billion
euros.
Products: M&S products includes clothing for men, women and children as home products and
food (Akhter, 2017). It uses its own brands which are used in indigo collection, women's wear
division, junior division and portfolio.
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Legal structure: M&S is owned by the board of directors which are elected by the shareholders
and M&S is headed by Chairman which is Archie Norman. Each shareholder of M&S has
limited liability for the company's debts. M&S has a flat organisational structure and in this type
of structure has limited levels of management between administrative level and front line
employees.
Public organisations: Public sector or organisation is a type of organisation which is controlled
and run by the government which may include local government and state government. Private
organisations also forms the part of an economy of a country which is effectively controlled by
the country's Government (Pascual and et.al., 2017). There are various types of public
organisations like governmental companies, departmental undertakings, etc. Such organisations
are funded by tax revenue which is generated by public. Public sectors may often engage private
enterprises for the purpose of delivering products or services to the citizens of the nation. Its
main purpose is to supply quality goods and service to the customers and public organisations
make profits by selling product and services to the public.
British Petroleum is the example of public organisation, which is British multinational oil
and gas organisation which has its headquarters in London, England. It is founded in 1909, by
William Knox D'Arcy. It is the world largest oil and gas company. BP is the 6th largest energy
company by the market capitalization and is 12th largest organisation by its turnover (Namada,
2018). It operates in the areas of oil and gas, which includes refining, exploration, production
and distribution and marketing of oil and gas products.
Products: Its product line includes natural gas, petroleum, petrochemicals, motor fuels and
aviation fuels.
Legal Structure: As BP is a public limited company therefore, it can sell its shares on the stock
exchange to the members of public in order to raise more finance than any private company. BP
main decisions is controlled by government. It has to publish its annual accounts and therefore is
extremely vulnerable to different investors and bankers.
Voluntary organisations: Voluntary organisations or sectors are the group or union of different
individuals who are interested in entering into an agreement to accomplish a specific purpose.
Voluntary organisations often depends on regular and occasional volunteers in order to carry out
its operations and such organisations may or may not pay their staff. Its main purpose is not to
make profits but to volunteer in order to serve the humanity.
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