Business Environment: Types of Organizations, Structure, and Impact of Economic Environment

This document provides an in-depth analysis of the business environment, focusing on types of organizations, organizational structure, and the impact of the economic environment on business success. It explores the case of Unilever and its response to the local, national, and global economic environment. The document also highlights the importance of accounting for business success and discusses the stages of team development. Additionally, it delves into the roles within a team and their significance in achieving organizational goals.

Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1. Explain different type of organisation found in public and private sector in a named
country along with examples? ....................................................................................................3
1.2 Explain different structure in the business in your selected country and suggest reason for
the variation and also support the explanation of structure with diagram..................................4
TASK 2............................................................................................................................................5
2.1 Explain the importance of accounting for business success.................................................5
TASK 3............................................................................................................................................5
3.1 Present and interpret key accounting information using P&L Account ?.............................5
TASK 4............................................................................................................................................5
4.1 Describe the stages of team development ............................................................................5
4.2 Carry out an analysis to determine own and other roles with in a team ..............................7
4.3 Explain Three Motivational Theories ..................................................................................7
4.4 Discuss different type of leadership style ............................................................................8
TASK 5 ..................................................................................................................................9
5.1 Explain different functions carried out by HR department in business................................9
5.2 Explain key features of employment legislation...................................................................9
TASK 6............................................................................................................................................9
6.1 Explain the impact of customer service on business success ...............................................9
6.2 Explain the benefits of customer profiling to a business ....................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
 To analyse business environment it is necessary for organisation to perform
PESTLE analysis and SWOT and after that decision making regarding business operation
is done. The organisation that was selected in the project is Unilever (Brennan, 2020)
. It had its headquarters in London and the CEO of the company is Alan Jope. Various topics
related to types of organisation, structure in company, PESTLE, stages of team development,
various leadership theory , leadership style and many other are also discuss in the report.
TASK 1
1.1. Explain different type of organisation found in public and private sector in a named country
along with examples?
Type of organisations found in different sectors
1. Public company: It is such type of organisation whose full control are in the hands of
Government whether it is related to Central or State.
 Unlisted company- These concern have managed by Government but it is not listed in
any stock exchange(Cristofaro, 2020)
Example: LEK consulting, NHS
 Listed Company: It is those organisation whose share are listed on stock exchange. It
cover those companies whose turnover are exceed to the limit which is set in the
Companies Act.
Example: Unilever, Tesco
2. Private company: In this control are in the hands of individuals not in government. In
this all the risk are share by partner in the profit sharing ratio which is written in the
deeds in case of partnership or in case of single owner , all risk and return are taken by
such individual only. for example Dyson, flipchart.
 Sole proprietorship: In this single person run the business by performing all the
operational activities. All risk , responsibility and profits are taken over by them
individually.
Example: LEK Consulting, electrician , plumber.

 Partnership: There are minimum two individual or firm are involved in it . Both
involving parties are frame the agreement which is known as partnership deed as it
bounds both the parties. The risk and profit sharing ratio of partners are mentioned in the
document which is commonly called as partnership deed. All the provisions or manner
related to admission, retirement, dissolutions are explain in partnership deed .Example:
KPMG, deloitee, E&y
3. Voluntary organisation: these are those type of business whose main objective is not to
earn profit but to do social welfare and work for upliftment of society as well as as
standard of people.
 Trust: The public's wellbeing is the goal of trust. A trust can have a wide range of
interests, including education, animal welfare, religious, or even recreational pursuits, but
it can only be established if property is involved, such as the construction of schools or
hospitals. In this trustee is the person who make control over the affairs of the trust. For
example NHS trust .
 Society/ NGos : Society is a group of people who are associated with each other to fulfil
a shared goal or to serve a common mission. In this MOA is prepare and also it must be
registered with the name of society. They are not establish for profit earning purpose
their main goal is to serve the services to people with out charging any cost as the source
of income of these entities is fees of subscription, donation .for example Oxfam , it is the
NGO whose main objective is to remove poverty globally.
4. Franchise : A franchise is a sort of licence that allows a franchisee to sell a product or
service under the franchisor's brand name by giving them access to the franchisor's
unique business expertise, procedures, and trademarks. The franchisee normally pays the
franchisor an initial start-up cost as well as annual licensing fees in exchange for
obtaining a franchise. For example – McDonald’, Dominos.
:
1.2 Explain different structure in the business in your selected country and suggest reason for the
variation and also support the explanation of structure with diagram.
As there are different type of structure are present in business But our chosen
organisation “ Unilever ” follow divisional structure as company has a division for home care
product and for personal care product. Unilever has changed their hierarchical organisational

structure to divisional organisational structure as the company rapidly innovating large variety of
new product so there is need to change the structure for effective business results. There are
different types of organisation structure exist which are explain in the below mentioned
paragraphs-
 Flat- In this there is no existence of any middle level management. In this top level
directly supervise the employees. In this no mediator is present.
 Functional- For management purposes, a functional structure separates the organisation
into specialised functional divisions such as manufacturing, marketing, and sales.
 Matrix - A matrix structure is a sort of organisational structure in which workforce are
grouped by two operational dimensions at the same time.

 Divisional- A divisional structure is a sort of organisational structure in which each
organisational function is divided into divisions. Each division houses all of the resources
and functions required to support the product line or geography in question.

 Hirarchial - The structure of a hierarchical organisation is similar to that of a pyramid.
Except for one person, generally the CEO, every employee in the company is subordinate
to someone else. The layout is made up of several entities that descend into the base of
the pyramid, which is made up of staff level employees.
1.3 Identify a named business. Describe how the local, national and global economic
environment impacts on the named business.
PESTLE Analysis of Unilever

Political: Unilever is subject to regulatory restrictions and guidelines and if they were
unable to follow than company would face legal issues as well as risk fines. Import, Export ,
trade laws restrictions could hinder the success of Unilever going forward (Bhattacharyya, 2020)
Economic: The state of economy means consumers were less likely to purchase those
product which are most expensive. Quality products with cheap prices are in demand. If the
demand of their items are low than it may make impact on profits and cash flow. It means that
mercy of inflation and consumer whims.
Social: As the brand Unilever concentrate on well being as well as on personal care.
They focus more on the issues which are connected to environmental and social factors.
Technological: Automation is the key to this factor. Thus Unilever has great level of
automation as compare to their competitors. If company not work through automatic technology
than cash flow, profit all are decline and also make negative impact on goodwill.
Legal: Organisation Unilever has many legalities and laws. Every stores location and
brand are restricted to follow health & safety laws and copyright.
Environmental: This factor are concerned to natural things, events that are related to
Earth. As Unilever promote renewable and sustainable resources. From packaging to design their
products are eco friendly.
TASK 2
2.1 Explain the importance of accounting for business success.
Accounting plays a most significant role in business because all the transaction related to
sales and purchase are recorded. The importance of accounting are wide in terms to business as
It helps to track financial performance of business by analysing income and expenditure that are
exist during particular financial year. Quantitative financial information are also generated with
the help of accounting and on the basis of that important documents like financial statements are
prepare. It include Profit & Loss Statement, Balance sheet, Cash flow. Audit report as well as 3
CD and tax reports are also annexed with these reports. It tends to help in budget preparation as
well as future projections. The accounting functions provide ensurity that all the liabilities
related to tax deduction at source, sales tax, Incomer tax, custom, excise are address properly
most suitable manner. Thus with proper recording of transactions, accounting is done by smart
accountants of Unilever so that profitability can be measure easily and important decisions

making in terms to investment or distribution of dividend can easily perform by top management
of the company(Beynon-Davies, 2020). In the organisation proper accounting is very necessary
as it helps to analyse the actual status of the company in terms of revenues, credit etc. with the
help of appropriate accounting only it become possible for managers to prepare budget because
accounting supports to determine actual availability of funds. Planning also totally based on it as
for business expansion planning is most effective element. If sufficient money is exist than it
become easy to plan for some new innovative project. Through proper accounting it become easy
to monitor the cost of product and after analysis if it is observe that it is necessary to raise the
prices of items to gain competitive edge than it tends to be done. It tends to improve the chances
of business survival and growth as well as leads towards success.
TASK 3
. Profit and loss statement of Unilever Ltd

As per the statement it is conclude that In the year the opening balance of year 2016 is
3391 and after making adjustment it is closing balance is find I.e 3201 and the closing
balance on the date 10 March 2018 is 3795. In the year 2018 profit are tends to be
decrease. In the year 2017, the balance of retained earning is 2100pound . But in year
2018 it increases and stands at the value 3789 pound. Profit for the year 2017 is 2100
pound. While profit for 2016 is 35 pounds.
TASK 4
4.1 Describe the stages of team development
Team Development: For team to be effective, members of the team must be capable to
work jointly to contribute collectively to team outcomes. As it is not become possible
automatically for that it tends to develop together as team work.
Stages of Team Development Forming stage: It includes orientation period and also tends to get acquainted. During
this stage it involves high level of uncertainty as persons are wait for authority &
leadership (Smits, 2020). storming stage: As it is consider as most critical stage to pass through. It is related to
tough competition and conflicts as personality of individuals are emerge in this stage. It
tends to decrease team performance because In unproductive activities efforts are put. In
this stage team get bogged down Norming stage: If team members get through storming stage than after passing from this
stage, disturbance and conflicts are solved as well as unity is tends to be emerge. In this
stage interpersonal differences are resolve as well as unity sense are tends to be emerge.
In this team performance are tends to increase as harmony is considered as important
element in this stage (Cross, 2020) Performing stage: As it emphasise more on cooperation as in this team is well
functioning, mature as well as systematic organised. Still conflicts and issues are exist but
team members deals constructively. The objective of the team is to solve the problems
and achieving objectives (Rao, 2021)

 Adjourning stage: As it is the last step, in this all the targets are achieved by team
members. In it members more focus is on wrapping up of final task and after that
members are reassigned to some other team but if team are connected to standing
committee than the members are tends to be replaced by those individuals who are totally
new.
4.2 Carry out an analysis to determine own and other roles with in a team
Divisional organisational structure are follow by Unilever company and I was played a
role of marketing executive of marketing department. Promoting, Strategic formation are the
main role to play. Marketers make contact to other departments also for smooth functioning.
Executive make in touch with finance unit to get budget from them and to sales department to
give details of customers who are interested in purchasing products. In this they are interlinked to
various units that are available in business (NGUYEN, 2020). In the organisation various roles
are perform by marketers such as discuss as follows –
 Navigator-Missions are supported by actions. Setting explicit goals helps to steer the ship
in the right direction. A compass is used by the navigator. This leader establishes the
vision for the organization's progress toward its goal.

 Learner- The learner is someone who tends to develops their skills, knowledge, abilities
on regular basis so that it become possible to achieve strategic targets. Lifelong learning
is crucial to sustainability. At the time of performing marketing activity there is need for
marketers to learn various smart tactics for positive results
 Mentor – at the time of dealing with their subordinates and while giving instructions they
act as mentor. A mentor lays the groundwork for his or her mentee's achievement. When
it comes to achieving new heights in any aspect of life, this type of leader is tends to be
consider as perfect asset.
Roles of team members –
 They plays the role of researcher – In this role research or survey is done by individual.
 Plays a role of analysist : at the time of conducting analysis deep study is tends to be
done.
4.3 Explain Three Motivational Theories
Different theories of motivations are implement by managers in the organisation for
effective results. Because with the help of these theories motivation level of employees are
getting improve which force employees to work hard and efficiently achieve the targets. In the
below mentioned paragraphs three theories are discuss in details.

 Maslow Theory: Abraham Maslow says that people get motivated only when their basis
as well as other needs are fulfil. In this needs are starts from bottom to top as per the
hierarchy as these needs are explain in below points .
Physiological- There are related to basic need which are necessary for person to survive for
example water, shelter, food.
Safety- This is related to heath and safety measures like neat and clean working place,
availability of medical facilities, clean drinking water, proper equipments, etc. Security of
income , permanent scholarship, financial aid , good salary, employment are also cover under it.
social- It is related to love and belongingness. It also concerned to affiliation, association , social
perquisites, friendship etc.
Self esteem – These are connected to recognition, respect, value in premises in the form of
promotion, appraisal, good grates, perquisites , prizes, improvement of status through providing
valuable items.
Self actualization - It involves personality development opportunity, learning, fun, challenging
work. Thus these needs are in the highest level due to which employees get motivate up to extent
level.
 Mcclelland's Theory: As it is not based on age or gender but these are dominant in
behaviour . On life experiences these drives are depends. Three motivators under this
theory are
Achievement- A requirement to complete own competence as people with high requirement for
achievement prefer task that offers personal responsibility and on the basis of their own efforts
results are depends. Quick acknowledgement of their progress are also prefer (Moşteanu, 2020)
Affiliation – Social acceptance , belongingness in the firm and love are the factors that motivate
workforce . People in this participate in social gathering and may be feel comfortable and
avoiding conflicts.
Power- In this employees aspire for authority, status and more concerned to influence level and
regarding effective work performance
 Mayo Theory: It tends to be conclude that workers are motivate effectively with the help
of following features.

Better communication- good communication between workers & managers motivate
employees which improves efficiency of workers.
Greater manager involvement- employees respond to the increased level of attention they are
receiving from their employer
group working- Due to working in a group ideas and views are tends to exchange among
employees as it also increase corporation due to this type of supporting environment , employees
get motivated.
As Maslow theory are more suitable to get their employees motivated . Therefore
Organisation adopt this theory in the company for the purpose to motivate employees by
satisfying the need according to Maslow theory (Liguori, 2020)
4.4 Discuss different type of leadership style
Autocratic: In this type of management style all the control are in the hands of single
person. All the important decisions are taken by one person only. It does not shown interest to
involve other member in their matters. Even for suggestions also they do not involve others and
according to their own beliefs decision making is done (Dovis, 2020)
Democratic: In this group members take more participation in the activity as well as on
decision making. In schools government offices, corporates this method are commonly adopted.
As members feel more engaged in the important discussions or decision making.
Gratifier: It adopt the old style of leadership style such as carrot & stick approach. In
such situation leader of the team set targets and through offering good rewards motivate
employees to put their best efforts to achieve the task. On the other hand if human resources does
not act properly or not achieve the target effectively , penalties and punishments are also
attracted.
innovator: As these type of leaders satisfy the needs of those employees have big dreams
and ideas through turning these ideas into reality.
Delegative leadership: In this powers are delegated by leaders to their subordinates or
members of teams. Leaders are responsible to delegate the authority so that their work loads
becomes low and it tends to improve the motivational level of members because they feel that
their leader have trust on them.

Coaching style: People are viewed as a reservoir of talent to be developed by a leader
who coaches. The leader who takes a coach approach aims to help people reach their full
potential. A coaching leader provides people with a little guidance in order to help them realise
their full potential.
TASK 5
5.1 Explain different functions carried out by HR department in business.
Human resource planning: It is the most important function perform by HR. In this
future human resource requirement are observe and through following selection process
needs are tends to be satisfy by them.
Recruitment and selection: Recruitment involves the process in which most qualified
and experienced candidates are tends to be attracting for a job on the other hand selection is the
activity of identifying as well as selecting the most appropriate candidate to fill the vacant job
position.
Performance management: It is necessary in ensuring that employees must be
productive always and should be engaged for long term. Effective performance include good
quality of leadership , goals which tends to be set must be clear as well as open feedback.
Rewards: It is related to salary as well as for growth & career opportunities ,
recognition, status, healthy culture of organisation and satisfying job life. Given Reward may be
in the form of commission, Bonus, status, social security, perquisites, additional allowances etc.
Through giving rewards to workforce, performance of employees are tends to be improve.
Industrial relations: Developing healthy relations with trade unions will support to spot
as well as resolve bias and conflicts quickly. Healthy relation are beneficial at the hard economic
times.
5.2 Explain key features of employment legislation
Elements that are included in employment legislations are:
 Equal opportunity to all: To serve the purpose various regulations, laws and acts are
made. According to these laws , it leads to be ensure that equal opportunity has been
given to all the employees or workers , there must not be any discriminations in terms to

age, religions, caste, gender (Fuchong, 2020). It tends to give security to workforce, and
ensure that they are not harassed. Although an equal opportunity policy is not required by
law, it can be very useful in fighting against discrimination claims.
 Regulations related to working hours: As regarding to working hours acts are made.
In the provisions it is written that every employer must pay to their employees for
overtime also. Working hours are fixed for both male or female employees, trainee . All
the organisations must follow the laws and according to that fixed the working hours for
their employees. As rest interval as well as nursing break timings are fixed for women
workers. Also if any person works overtime then employer is liable to pay them for such
extra working hours.
 Wages & Remunerations: Provisions related to equal remuneration to all are also made
so that to avoid partiality between the workforce on the basis of gender, caste, religion as
it is compulsory to all companies to pay equally for the similar work. Person who have
same qualification, skills , experience are not to be pay differently , regarding that laws
are also made (Gao, 2020). To serve the purpose various minimum wage act as well as
payment of wages act are create so that to support workers and avoid misuse of working
people. It gives social security to workers.
TASK 6
6.1 Explain the impact of customer service on business success
Happy as well as satisfying customers are tends to be spend more. At the time of
interaction with company , customer has gained emotional experience which directly make
impact on how much amount they are interested to spend so by providing quality support are
provided to the team members due to this customers feel happy & valued that directly make
impact on sales also (Ghauri, 2021). It is critical to provide excellent customer service to all of
your clients in order to grow your organisation. Customers that receive outstanding service will
return to you with repeat business, which will increase your bottom line. After obtaining good
service, four out of five people are more willing to work with a company. on the other hand if
the services are not good than they make their customers unhappy and consumers avoid to
purchase product from that brands which tends to increase the chances of business failure.

6.2 Explain the benefits of customer profiling to a business
Identifying best customers- there is a sense of organisation best customers in the go to
market team (Halbert, 2020)
across organisation create alignment- A key benefit of ideal customer profile is to
create alignment across the company.
guide creation of target account list-To identify valuable customer ICP is tends to be
used.
Determination of manner to allocate important resources- After creating a list of
target accounting , an organisation can determine the additional investment of Time & resources
on the respective accounts.
Increase win rate: Account based strategies are adopted by company and developed a
strong ICP average 68% higher account to win rate (Hess, 2020)
CONCLUSION
After deep study and analysis it is conclude that to run the business effectively there is
need to appoint a person who act as leaders and provide instructions and guidance than only it
became possible for workforce to achieve the targets efficiently as well as effectively. It is also
observe that motivation is a key to success for employees . Therefore employer get satisfy their
employees by giving them different type of rewards as per their need.

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Online reference:
Dun & Bradsheet , 2021 [Online] Available Through <https://www.dnb.com/business-
directory/company-
profiles.oak_cash__carry_limited.adb35cec2dd26f5838d8d832e57d2969.html>