Understanding the Business Environment

This assignment requires an in-depth analysis of the UK business environment. Students are expected to examine various factors influencing the business landscape, including political, economic, social, technological, legal, and environmental (PESTLE) forces. The analysis should encompass current trends disrupting the UK business environment and incorporate relevant case studies to illustrate key concepts. Additionally, students need to research and discuss British business culture and the impact of digital strategy on businesses in the UK.

Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Different types and purpose of the organisation ..............................................................1
P2 Difference Size and scope of the organisation.................................................................3
P3 Relations in between business functions and its structure ..............................................3
TASK 2 ...........................................................................................................................................5
CONCLUSION ...............................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Business environment is highly dynamic in nature. It influences by the different types
of factors. According to the size, scope and nature of the business its create impact on external
and internal environment of the company. In the cooperative environment, there are many types
of business firms and each one has different purpose (Baron, 2012). The present report makes
difference in type and function of the organisation along with their size and scope. In the current
study British Airways is selected for making analysis on the macro environment. With the help
of selected administration various factors are being considered such as different types of
companies along with their purpose. Such as public, private and voluntary. On the basis of that
their size and scope is also evaluated by considering elements like shares, growth, HR functions
and so on. At the end positive and negative impact of various business organisations are
considered. It helps the company in understanding their loopholes. On the basis of that they are
able to implement necessary changes to attract maximum number of customers.
TASK 1
P1 Different types and purpose of the organisation
In the business environment, each type of organisation has its own purpose. It refers to
the administration goal, activities and tasks which are performed by industry in order to
making effective business operations. Following are the business purpose of company.
Public company
It refers to that organisation in which all the business operations are run and conducted by
the members of the company ( Craig and Campbell, 2012). Such type of firms are controlled or
funded by the public or the members of the company. All the services and goods under this
sector are offers. at the International level For example, British Airways is private company
which mainly conduct its business operations for earning profits.
Private company
Private company is that, in which are operations are run by the private ownership. The
company can issues its share but they are unable to traded in the stock market. Its aim is to earn
profits. Generally such type of business run by the family members.
Government organisation
A company in which majority of shares held by state. In which power of authority is
remained with government. In such types of establishment rules and regulation are exercises
1

according to public policy. The main purpose of government structure is promoted general
welfare. It worked for non-profit purposes and offers services to citizens. Example, National
Health services, in this organisation all activities controlled by the government.
Voluntary organisation
It is that types of the companies which formed by communities. Purpose of this types of
organisation is making social welfare. For example, cooperative companies , which are formed
for the social welfare and its main aim is to promote social welfare in the society. companies
which are formed by community to provide social welfare. It worked for structure of the
organisation
Legal structure of the organisation refers to the that formation under which company is
registered and conducts its all business operations according to it. . Most common legal structure
of company is sole, partnership and private limited organisation.
Sole proprietorships
Under such business all operations of company are run by an individual. In this types of
operations profit and lose are reported on the tax return of the owner and individual is liable to
take all the types of liabilities in the unincorporated business.
General partnership
When two or more than two people jointly started a business and share profits and losses
it called partnerships ( Galati, Crescimanno, and Siggia, 2016). Under such agreement of the
they share all the types of liabilities and profits as according to their partnerships agreements.
All the control of the partnership determined by the agreements of the business.
Private limited company
It is that type of the legal entity which established under the company act. Hence, it is
known as the business under which, firm has range of legal capacities and the members and the
members of the company is not liable for the nay type of personal liability.
It is considered as a business group in which owner are provided with limited shares.
They are having independent legal organisational structure. This types of companies can have
maximum 50 investors at a time. The major propose of implementing this approach is, owner is
able to pass his strategies and polices with his family and maintain profitability. Responsibilities
of maintaining shares are on the people that are associated with the organisation.
2

P2 Difference Size and scope of the organisation
The size and scope of the each organisation is different (Gupta, 2013). Size of the
company includes number of employees and number of the branches which are conducted by the
organisation and on the other hand scope refers to the growth of organisation in the national and
international market.
Objectives and goals of organisations
Each company has it owns objectives and goals and according to their goals they are
offering their services to its customers. . For example, the public company which has it objective
to earn profits and gain advantages from the competitive business. British Airways is the public
organisation and offering its services for earning profits (Hansen, Nybakk and Panwar, 2013).
On the other hand NHS which is government organisation aims to offer it services to citizens of
the UK so their purpose is social welfare. Therefore, with the help of objective organisation is
able to develop their strategies to reach their target. Profitable firms are implementing strategies
for expanding their business and maintain effective market image. On the other hand non-
profitable companies are providing services for making changes into the society and reducing
difficulty of people.
Global growth
The growth of the public company covers the entire market along with the international
level. BA is public company so they can capture the market on the international level easily
(Mithas, Tafti and Mitchell, 2013). The growth of the public company is higher compare to the
other business organisations. The market growth of the private company growth is limited in
the particular regions only and for the non profits company their growth limited to the regions
or area in which they are offering services. Most of the private firms are developing action I
order to get enter into the international market. It helps in expanding their profitability and
provides recognisance at global platform. It helps in attracting maximum number of customers.
On the other hand public companies are collaborating with international agencies for improving
service quality and having advance technologies for providing effective services.
Profits share
The profit share of the public company is higher than the other organisations. In the
public company all the services and products are offers for the purpose of earning profits and
collect their gather amount from the issuing share this is only reason that the British Airways is
3

earning high income and high level of profits share in the market (Mithas, Tafti and Mitchell,
2013). On the other hand profit of the private company is limited. Most of the times services
which offers by the private company are limited to particular region only and offers for the non
profits purposes so their market share is also limited. Public companies are having stable profit
share, as they are having support of various government agencies. On the other hand private
companies are not provided with various funding opportunities. It affects the shares of the
company.
P3 Relations in between business functions and its structure
In the every types of the business organisation has some functions and which are
important to perform. It helps to enterprise for achieving their main objectives and goals.
British Airways conduct a number of functions to achieve their objectives. (Palmer and Hartley,
2011). The main aim of the establishment to offers quality in services and increasing customer's
satisfaction. Structure of the firm is directly interrelated to the functions of the company. The
structure of the institution is hierarchical under which different level of the management
involved. Given below are the main function of British Airways.
Human resources Function
The main function which perform by the HR is to hire right person for the right job. In
the business environment, firms need large number of workforce which helps to them for
performing their daily trading operations (Rosenbusch, Rauch and Bausch, 2013). It is duty of
the human resources for hire the right candidates for the vacant position in the British Airways.
For the company, it is also very important as the most of the time interaction with passengers
done by the only employees. It assists to business for gaining loyalty by giving quality services
in their business. Due to the structure of the company Human resources needs to communicate
to their managers every time. Therefore, the responsibility of HR department is considered as
significant, they helps in maintaining the effective workforce and supports growth of firm.
Marketing Function
Under this function include promote of organisation's products and services through use
of promotions and advertisements. Its main aim is to enhance sales of the company and gain
more customers in their business. With the helps of the effective marketing strategy, firms can
attract more consumers in their business and its also includes use of the different types of
channel of communication in the market (Weatherley and Otter 2014). In the British Airways,
4

for the marketing function uses different types of the social media sites so they gain more
buyers. With the help of this strategy can make aware about their services to their customers.
This function is also related to the structure of the company because of this structure organisation
need to communicate to different department easily. This helps in increasing brand values and
reputation. With the help of effective marketing strategies company is able to attract huge
number of customers it helps in expanding profitability.
Financing Function
This function include to make arrangement of the funds and their allocation, it is core
function for business. A proper allocation of funds help establishment to mange their work. if
allocation of fund is appropriate then it aids value in the financial statements of the company. It
also helps to attract more investors in the business (Worthington and Britton, 2014) For the
British Airways, this function assist to them for making Budgets, identifies risks and increasing
profits of the firm. Due to the Hierarchical structure all the powers and authority becomes
centralized and with the activity of this structure management can allocated resources
effectively. It is considered as one of the important segment of the company. With the help of
implementing effective budget and finance plans, they are able to expand their marketing and
productivity. It helps in increasing profitability of company and also maximises profitability.
Production function
It refers to the converted all the type of the semi structure goods in the finished goods.
Under this services, Airline company offers quality of services to customers. British Airways,
in its production function they offer number of services to their customers so they raise their
customer's utility. Along with these it is also includes effective use of the capital and labour
within organisation. Due to the Hierarchical structure all the powers and authority becomes
centralized. Product functionality is one of the most important element of the company. It
presents the image and service quality of firm into the market. In order to maintain effective in
order to attraction customers performance of services are important. Therefore, effective
production functionality should be considered. Along with this loopholes of the process should
be handled carefully.
TASK 2
Covered in PPT
5

CONCLUSION
Summing up the present report it can be concluded that all the business organisation have
different types of purposes and legal structures. Size, scope and structure play important role in
the business. In current study, is based on the British Airways which is UK's one of the most
successful business organisation. The aim of the company is offers quality services to their
customers. The report is also concluded interrelationship in between functions and structure of
the firm. In this report gives brief overview is also given about the internal and external business
environment which make targeted to the operations of respective enterprises. On the basis of
above report it is inferred that British Airways are developing strategies for expanding strategies
and increase profitability. For this they are considering various elements such as productivity,
marketing shares and so on. It helps in boosting up their performance and maximising
profitability. Along with they are able to make effective strategies and reduce financial
consumption.
6

REFERENCES
Books and Journals
Baron, P. 2012 Business and its Environment. 7th Ed. London: Prentice Hall.
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
Ebert, R. J., Starke, F. A. and Dracopoulos, G., 2014. Business essentials. Pearson Education
Galati, A., Crescimanno, M. and Siggia, D., 2016. Website quality and internal business factors:
an empirical investigation in the Italian wine industry. International Journal of Wine
Business Research. 28(4).
Gupta, A., 2013. Environmental and pest analysis: An approach to external business
environment. Merit Research Journal of Art, Social Science and Humanities. 1(2).
pp.013-017.
Hansen, E., Nybakk, E. and Panwar, R., 2013. Firm performance, business environment, and
outlook for social and environmental responsibility during the economic downturn:
findings and implications from the forest sector.Canadian Journal of Forest
Research. 43(12). pp.1137-1144.
Mithas, S., Tafti, A. and Mitchell, W., 2013. How a Firm's Competitive Environment and Digital
Strategic Posture Influence Digital Business Strategy. Mis Quarterly. 37(2). pp.511-536.
Palmer, A. and Hartley, B. 2011 The Business Environment. 7th Ed. Maidenhead: McGraw-Hill.
Rosenbusch, N., Rauch, A. and Bausch, A., 2013. The Mediating Role of Entrepreneurial
Orientation in the Task Environment–Performance Relationship A Meta-
Analysis. Journal of Management. 39(3). pp.633-659
Weatherley, P. and Otter, D. 2014 The Business Environment: Themes and Issues in a
Globalised World. 3rd Ed. Oxford: Oxford University Press.
Worthington, I. and Britton. C. 2014 The Business Environment. 7th Ed. Harlow Pearson.
Yagyasen, D., Darbari, M. and Ahmed, H., 2013. Transforming non-living to living: a case on
changing business environment. IERI Procedia. 5. pp.87-94. Canada.
Online
British business culture, 2014. [Online]. Available through
S:<http://businessculture.org/northern-europe/uk-business-culture/>. [Accessed On : 4th
July 2017].
TRENDS THAT WILL DISRUPT THE UK BUSINESS ENVIRONMENT, 2015. [Online].
Available through : <http://vibranteconomy.grantthornton.co.uk/trends-that-will-disrupt-
the-uk-business-environment/>. [Accessed On : 4th July 2017].
7