Business and Business Environment Introduction

BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Several types of business organisation and its purpose.........................................................1
P2 Mention size and scope of a range of different types of organisations..................................3
TASK 2............................................................................................................................................5
P3 Explain the relationship between different department of an organisation...........................5
TASK 3............................................................................................................................................6
P4 Pestel Analysis of the organisation........................................................................................6
TASK 4............................................................................................................................................7
P4 SWOT ANAYSIS of an organisation....................................................................................7
P6 Strength and weaknesses that are interrelated with external macro factors...........................8
CONCLUSION...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business Environment is the collection of all internal and external factors that includes
customers, employees, exceptions and several others. However, these business factors directly or
indirectly affects the working condition of an organisation. Moreover, business environment also
helps in analysation and identification of available opportunities which tends to improve overall
performance of a firm. The report is based on Marks & Spencer which is a British multinational
retailer. The company is headquartered in Westminster, London founded by Michael Marks and
Thomas Spencer. It is specialised in selling home product, high quality clothing and food
products. This report is basically going to cover several types of business organisation its prime
purpose as well as scope and size of each. Determination of relationship among different
organisation function will be covered. Furthermore identification of positive and negative factors
that impacts business operations will be highlighted.
TASK 1
P1 Several types of business organisation and its purpose.
Business operations by an organisation can be carried out in three different categories.
However, these different categories are usually known as the main sectors of economy. These
factors are mentioned below:
Private Sector Organisation are those organisations which are usually free from
government ownership and control. Moreover, under UK market the government imposes
relatively few restrictions on business activities of private sector organisation (Badal, and Harter,
2014). Prime motive of these organisation is making profit. They are financed through private
money given by bank or shareholders. However, Marks & Spencer is an example of private
sectors organisation.
Purpose of Marks & Spencer is to cater the needs of middle to upper-middle class. The
company try their best to produce good quality products that are clothing, home décor as well as
food.
Objective of the firm is primarily to build sustainability business through consistent
growth and profitability. However, Marks & Spencer top management makes sure that they
responsibly meet the requirements of customers.
1

Private Sector business operations can be carried out in different formats like: sole
proprietorship under which activities of business is simply handled by a single individual who
uses his own funds to start business activities (Bekmamedova and Shanks, 2014). However, the
sole trade is often responsible for all the day-to-day business management. Another format of
private sector organisation is partnership under which two or more person usually aim at carrying
out business activities together. Partnership normally do not have separate legal entity. Each
partner is liable to provide a particular share. Profits and loss are shared according to the
contribution made by each partner. Moreover, this sort of business is usually lead down by a
lawyer or legal council.
Marks & Spencer legal structure is Public Limited Company that basically aims at
providing wide variety of products to company's final customers and satisfy their desired wants.
Public Sector Organisations are usually controlled and managed by the government. Main
focus of these organisation is to serve people of country. However, some major examples of
public bodies under UK market are: health care bodies, educational bodies, local as well as
central government bodies. Main source of finance for these organisation is national taxes which
are collected by government. However, example of public sector organisation is NHS.
Main purpose of NHS is to provide high quality healthcare services to people of the
country. Moreover it monitors various health care services and polities for several organisation
that helps in providing optimum care for patients.
Basic objective of NHS is make people healthy and aim at reducing health inequalities.
They also aim at establishing a safe as well as secure environment that enable them to protect
staff from harassment, violence and abuse.
Public Sector organisation are primarily of two types. That is either the government of
the country fully finances through revenue which are collected in the form of taxes, fees or
duties. Another way is that the government provides 51% of shares capital to the respective
company to carry out business operation (Ehret, Kashyap and Wirtz, 2013).
Legal Structure followed by NHS is central government that helps in achieving overall
efficiency.
Voluntary Sector Organisation usually consists of organisations which are established to
benefit and enrich the needs of society. They often serve the nation without profit motive.
Moreover, these organisations are independent from national and local government. Charities
2