Business and the Business Environment: Types of Organizations and their Functions

This report discusses the different types of organizations in the business environment, including public, private, and voluntary sectors, and their legal structures. It also explains the size and scope of various organizations and the relationship between different organizational functions and how they link to organizational objectives and structure. The report concludes with a SWOT analysis of particular organizations to analyze their strengths and weaknesses.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
Explain different types and purposes of organization public, private and voluntary sectors and
legal structures .......................................................................................................................4
Explain the size & scope of a range of various types of organizations..................................6
Explain the relationship between different organizational functions and how they link to
organizational objectives and structure..................................................................................8
Identify the positive & negative impacts the external environment has on business operations,
supported by specific examples............................................................................................11
Conduct internal & external analysis of particular organisations in order to analyse strengths
& weaknesses.......................................................................................................................12
Explain how strengths & weaknesses related with external factors.....................................13
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business environment is defined as a work culture and atmosphere which is maintained by
the higher authorities in their workplace areas between employees. Because due to maintaining
positive work culture productivity of employees are easily increased at maximum level (Coles,
Ritchie and Wang, 2021). But business is referring to the separate legal entity which main
consideration is to earn more profits so that they can sustain in the market. The chosen
companies are England cricket board, Tesco and Sobell for understanding the concept of
business and business environment effectively. This report will cover different types and
purposes of organization public, private and voluntary sector and legal structures, explain the
size and scope of various organizations. It also covers the relationship between different
organizational functions and how they link to organizational objectives and structure. In last
SWOT analysis is being conducted in order to understand the internal environment.
3

MAIN BODY
Explain different types and purposes of organization public, private and voluntary sectors and
legal structures
Public sector – In this type of organization the whole the whole activities of the company are
fully controlled by the government or board members. The other feature of this type of
organization is that they run their services and produced best quality product for public in low
rice. In context to England cricket board it is one of the sports company who worked in the
form of public sector. A public sector organisation can have maximum of 50 employees in order
to perform key operations and functions. The public sector organisations generally operates on
national level in order to do welfare of citizens of a country. There are total number of 82
employees in the England Cricket board.
Legal structure of public organization -
State government: Here, company is focusing on state wise locations for increasing the
popularity and sale of their product in society or between customers.
Central authorities: Its main role is to modify and influence the economic supplies by
allowing the company to carry out its various activities smoothly (Dias and et. al., 2020). In
aspect of central authorities, they are mainly focusing on all categories of customers and multiple
locations for sell their product easily.
Local government: Individual diploma requirements are distributed using them. They
also raise funds through the use of a council tax.
Private sector – It is another type of business and in this business organization run their all
business activities and services privately. The main purpose of this type of business is to earn
maximum profit and also meet the desires of the potential consumers in time. In context to
Tesco, it is one of the organization who always focus on maximum profit with help of facilitating
best quality products to users. Private sector organisation can have maximum 50 employees,
depending on its size and scope. The private sector organisations operates on all three levels
which are local, national and international. The number of employees working for TESCO are
3,67,321.
Legal structure of private organization -
4

Sole proprietorship: In this structure the whole activities of the company is run by single
person and that single person is fully responsible for the loss and profit of company. But due to
handling all functions by single person risk are also increased at high rate in business. In the sole
proprietorship, there is only a single owner, who performs key operations related to the business.
If the example of any sole proprietorship based business is taken into consideration then number
of employees will be only 1.
Corporation: It is established by a number of individuals in the form of group
(Filosofova and Surkova, 2020). The main motive of this group is increase profit, but it required
huge amount of documentation for increasing the reach of contract which is converted into
settlement. In this kind of organization, the stakeholders are regarded as the primary entity. The
corporation operates at national and local level to provide key services to different customers.
The number of employees in a corporation are 50-100, if the normal size of corporation is
considered. The UK corporation includes a total staff of 2500 employees.
Partnership: In this type of structure roles and responsibilities are effectively distributed
between company owners. In this way popularity of company are also increased at maximum
level within short duration. As far as the partnership business is considered, it can have minimum
2 employees and maximum employees as per the nature and size of the organisation. The
partnership can perform business operations on all three levels which are national, local and
international. The example of social chain is taken into consideration which is partnership firm
the number of employees are between 51 to 200.
Voluntary sector – In this type of business the main motive of firm is to meet the requirements
and wants of society while also actively trying to developing their well-being. It is effectively
implemented by a person who want to contribute in the activity of social welfare. In context to
Sobell it is one of the organization who always focused on doing the welfare of the society. The
voluntary sector organisations generally operates at national and local level. The National
council of voluntary sector includes 100 employees.
Legal structure of voluntary organization –
UN-incorporated association: These firms are created from mutual consent among two
or more persons with the goal of serving societal needs rather than profits.
Trust: It is a one kind of document which is essential for develop belief between two
concerned parties. Due to run organization of activities legally profit and popularity of company
5

are easily sustained in long term. It is a kind of legal enforcement contract or arrangement that
includes unsecured obligations.
Explain the size & scope of a range of various types of organizations.
The organisation is mainly divided into different sizes such as micro, medium and large
enterprise.
Micro enterprises- This is small sector where investment and employment level is low having
mainly of 0-9 employees. The example is sobell leisure. The micro enterprises operates in local
areas of a country.
Medium enterprises- This type of organization has mainly 10-49 employees working and its
turnover is around 10 million. It is an independent body that involves a small number of
employees in order to improve the business in the long term by increasing sales volume. The
example is England cricket Board. The medium enterprises operates at national level and local
level as well.
Large enterprises- It comprises of mainly 50-250 employees serving as volunteer memberships
as well as multinational organizations that are rapidly accelerating growth. The scope of such an
enterprise is to generate huge revenues involving multinational corporations that work as part of
the government. The example is Tesco which is operating in an international marketplace.
Public organization (England Cricket Board)
 Background – England cricket team is basically a type of association and government
body. Due to they have the power to take any type of decision and changes regarding the
sports matter.
 Product/ service offered – This company is facilitating full support to their each and
every player in the form of providing best quality sports equipment’s and training.
 Vision – The vision of these organization of this organization is to enhance the popularity
or craze of their sports in various locations or in the minds of young generations.
 Scope – The mission of this company is to facilitate advanced sports equipment’s to their
players in all type of games (Ghouri and et. al., 2020). Due to this organization easily
achieved better and positive result with help of players in long term.
 Size – The is an international and largest organization or the committee and their office
are located in various parts of the country. Due to their worldwide presence services are
easily done in effective manner.
6

Private organization Tesco
 Background – Tecso is a multinational British retail company which was established in
the year 1919. The company has retail chain all across the world and provide all type of
retail products to major customers.
 Product/ service offered – In aspect of products and service Tesco is one of the
company who facilitates best quality household retail products and services to key
customers.
 Vision – The vision of Tesco is to bring inspiration and innovation to every customer in
the world. This company also aims to bring new techniques in products and services in
retail sector development in order to facilitate key customers.
 Scope – The scope or mission of this company is to define the company's business in
terms of quality all over the world.
 Size – The total number of employees in this firm is around 354000 and these employees
are highly skilled in their work. Due to this customer easily received the best quality
product from company within low time.
 Stakeholders – The company was founded by Jack Cohen and its key stakeholders are
customers, employees and government.
Voluntary organization (Sobell Leisure)
 Background – It is also a one type of sports company which was established in 1993 and
is headquartered in United Kingdom.
 Product/ service offered – In aspect of product and services they are also facilitating
various types of sports and exercise equipment’s to the professional players and other
customers. In this way the craze of various sports event is easily in minds of users for
long time.
 Vision – The vision of this company is to describes the desired future position of the
company. Elements of Mission and Vision Statements are often combined to provide a
statement of the company's purposes, goals and values.
 Scope – Due to facilitating various sports products to players at wide range the profit and
goodwill of company are easily maintained in market or between customers effectively.
7

 Size – In aspect of size it is the biggest organization in comparison in comparison with
public and private sector (Ibouder, Fayolle and Louitri, 2021). Due to having huge size
the legal risk in their business activities are also reduced at maximum level.
 Stakeholders – The founder of this organization is Michael Sobell and this also invest
funds in the sports event at huge amount.
Explain the relationship between different organizational functions and how they link to
organizational objectives and structure
 Finance – In this department the senior officers are managing overall expenditure of the
firm in systematically. In relation to Tesco, it is important for higher authorities that they
must prepare financial records in proper way. Because effective financial management
helps to deliver the wages to employees in time. This function helps Tesco achieve
organizational objective by providing finance for completing business objectives.
 Marketing – The main function of marketing department is to promote and popularising
the services and products of organization effectively in market. For increasing the
product awareness management are used various strategies such as online advertising,
digital marketing, sales promotion etc. Tesco is able to attain business objective by
promoting their products effectively.
 Human resource – The main role of this department is to managing whole employees
and organizational activities effectively. The other important function of this department
is to appoint talented candidate within company. In context to Tesco, HR management
must provide effective training to their employees for doing their job effectively. It helps
in attainment of business objectives by attracting and retaining talent.
Marketing and HR: In context to Tesco the main HR management is to oversee and
maintain the business's personnel and also to ensure that competent and experienced employees
are available in various locations in correct time. Due to coordination of human resource
business received an employee that is totally depend on all vital information’s about private
details and profitability is listed in a combined form for developed administration of a number of
professionals. Largely, the advertising and marketing management of the corresponding
company facilitates essential data to the HR about changes in laws or style mainly about in
which location training is provided to employees for increasing their talent effectively. Tesco is
able to attain business objectives because of such relation between marketing and HR as it helps
8

build talented workforce, improves employer branding and increase sales. The main advantage of
interlinking of Marketing and HR department of Tesco is, it is helps in increasing the chances of
coordination between employees. The main disadvantage of this interlinking is, it creates
conflicts as the environment is not exactly suitable for all employees. This can create impact on
the decision making of the company which can also impact on Tesco's organisational structure.
Marketing and finance: Marketing department of Tesco is in charge of understanding
consumer attitude for improving the overall company’s performance and structure. The proper
understanding of customers desires and wants help the organization for engaging their employees
in various activities. The essential knowledge about buyer is essential for carrying out their
planning and advertising strategy (Jafari-Sadeghi and et. al., 2021). In aspect of finance
department, they have the full power to decide how much fund is required for the activates.
Tesco supports businesses objective attainment through this functional interrelationship as it
helps build successful marketing campaigns with effective financial management. The key
advantage of interlinking of marketing and finance department is, it helps in providing incentives
to the employees which can improve their performance. Main disadvantage of this interlinking
is, it can lead to rigidity and complexity in the system and process of business. The hierarchy in
organisational structure can be disturbed by the interlinking of Marketing finance due to
complexity and rigidity.
Organization structure: After the analysis of above information Matrix structure is
suggested to Tesco company which is highly effective and suitable to them. Due to the effective
use of this structure company are able to enhancing the productivity and work efficiency of
company in long term. In this structure the communication between all departments are
effectively and systematically maintained for long time. Several departments, including human
resources, finance, operations, and advertising, are linked and work together to provide a more
effective control strategy and management.
Interrelationship- The organisation structure is dependent on the business functions. The
interrelationship helps in achieving productivity and cooperation is maintain. The
organisation makes the their structure and objective according to role serve to customers.
The organisation has several functions to perform such as sales, marketing, recuriting of
new employee all are connected to structure of firm when it is looking for expanding
business.
9

10

Identify the positive & negative impacts the external environment has on business operations,
supported by specific examples.
PESTEL Analysis is basically a method which is used by organization for analysis forces
effectively which includes political, economic, social, technological, environmental and legal.
Various factors of tips framework is explained as follows:
Pestle Analysis of Tesco -
 Political factor – It refer to those factor which impact the organization in political
manner which includes rules and regulations, various policies, taxation and others. In
context to Tesco management must run their business according to government rules and
regulations of that particular country. In this way the productivity and work efficiency of
organization are easily sustained in long term.
 Economic factors: It is related with those factors which effects the performance of
organization economically. In context to Tesco management must use various pricing
strategies such as discounting offer, skimming pricing, competitive pricing and others.
Due to the use of this strategy customers are easily attracted in large number and buying
power of consumers are also increased at higher rate. In this the economic growth of
company are also increased within short duration.
 Socio cultural factors: It is considered with those factors which is responsible for
changing the attitude and behaviour of customers effectively (Korsakienė and et. al.,
2020). In context to Tesco, management must produce and facilitate their product to
customers according to their desires and wants. Due to facilitating best quality products
to customers according to their wants and desires the popularity of their product are
easily increased in various locations effectively.
 Technological factor: In context Tesco management must use advanced must use
innovative and advanced technologies for keeping standard and quality in their product.
For keeping standard and innovation in their product company are used various ideas and
creativity in research and development department. Effective adoption of advanced
equipment’s and creativity supports the company for gaining competitive advantage in
low time. Due to having full commitment in aspect of using advanced technologies by
11

management, they easily acquire a wide amount of consumers and improve their
situation.
Environmental factor: It is concerned with those factors which is important for
changing the life of community by operating for their wellbeing. In context to Tesco,
management must facilitate clean and hygiene workplace to their employees for
producing best quality product. Due to this company are able to ensure the ensuring the
sustainability of the environment, including minimising wastage in the workplace area,
would enable the corporation achieve competitiveness in the industry
Legal factor: In context to Tesco, the working in different nations and they are
following the regulations and zones by which they can eliminate the various aspect in the
business which can leads to unfair means of activities within the organization. This is
quite complicated and also creates negative effects to the mental health of the individual
due to restrictions and law which is being imposed by the government of the country.
Conduct internal & external analysis of particular organisations in order to analyse strengths &
weaknesses.
SWOT analysis framework which analyse the strengths weaknesses opportunities and
threats of the company by which we can easily eliminate and overcome from the weakness and
Dyson can get more opportunities in comparison to their competitors and explain as follows:
SWOT Analysis of Tesco
Strengths Weakness
 Use of qualifies and skilled
employees is a highest strength of
Tesco organization. Because with help
of these skilled worker’s products are
easily produced in best quality (Liao
and Yang, 2020).
 In relation to Tesco management
always maintained the customer
satisfaction level effectively with help
 In context to Tesco there, prices of
their product are comes under
premium segment which leads to
decreasing of customers at higher rate
which is not good for their sales.
 High use of Technology creates
negative impact for organization
because due to high use of technology
the maintenance cost of machines is
highly increased which is not good for
12

of facilitating quality product and
evaluating feedback of customers in
time.
their performance.
Opportunities Threats
 Due to providing best quality
product and services to consumer’s
positive relationship is easily
maintained employee and customers
for long duration.
 Good supply chain and
infrastructure also helps the firm to
deliver the products to customers in
time. It is also useful for receiving
positive word of mouth from
customers.
 Due to heavy competition Tesco are
facing various difficulties for sell their
product because other brand also
provides the same product to all
customer segment.
Explain how strengths & weaknesses related with external factors.
In context to Tesco, management has potentiality and ability in social and environmental
issues, technical, economic and legal elements pose a threat to the organization. It is crucial for
company to embrace chances present in the environment in terms of growing itself. External as
well as internal factors are strongly intertwined, such as economic and political problems
affecting the organization's income and posing a risk to the business. External factors are directly
linked with internal aspects of company such a, including the organization’s primary strength of
having a solid distribution channel as well as a position in the market industry. Effective use of
various opportunities helps the company to gain a competitive advantage in market within short
duration.
13

 Political factor- In the economy there is determination of up and downs which is
considered by Tesco that puts positive & negative impact on business operations.
Positive- The comprising of strong presence and global expansion leads to positive
impact which also consider strong team building.
Negative- the change in trends and lawful consideration has negative impact on business
functioning of Tesco.
 Economic factor- The change in growth rate and economic stability is determined. The
economic situations put direct impact on business.
Positive- The cheap products are offered to customers in contrast to rival.
Negative- The changes in market trends, inflation and some fluctuations condition puts
an negative Impact on Tesco.
 Social factor- This consider the social activities which puts direct influence on company
sales that involves demographic, trends of customers.
Positive- The consumer preference and choices is determined by following up of several
marketing activities that puts an positive impact.
Negative- There is high level of competition with competitors dealing in the same
industry of Sportswear affects performance of company.
 Technological factor- The Tesco is concerned with the technology to cater more
attention of the customers for the high sales, with the use of technology it is offering
innovative and comfortable shoes with new designs and colours.
Positive- There is use of high technology for producing innovative products which leads
to enhance of brand image.
Negative-The charge of high prices on some products in respect to accessories, apparel or
shoes as compare to other competitors or offering of new design products puts an negative
impact on business operations of Tesco.
 Environmental factor- This is concerned with the changes in weather and climate and
pollutions are affecting productivity and business functioning in the external environment
14

Positive- The participation in green marketing activities and providing awareness about
environmental sustainability puts an positive impact and considered strength for the Tesco.
Negative- Due to the changing marketing and technological changes, situations and
moves affect the environmental situations that affect ecological sustainability.
 Legal factor- All the legal considerations and legislations are followed by the Tesco to
have more revenue and profits. All legal factors have a positive and negative effect on the
company and are also related to external environmental factors.
Positive- All the legal procedure is followed by Tesco company which puts and positive
impact and business operations are run smoothly leading to improvement in productivity
Negative- There are some controversy and lawsuit affecting the reputation of company.
The change in regulation and not keeping proper safety for employees may affect Tesco
negatively.
SMART Objective
Specific: To improve organizational flexibility to support interrelationship between functional
areas.
Measurable: It can be measured by the level of flexibility attained in different organizational
departments working together.
Attainable: It can be attained by using digital technologies to improve inter-departmental
collaboration and communication.
Relevant: It is relevant because interrelationship between functional departments helps attain
business objectives.
Timely: 3 months
15

CONCLUSION
After the analysis of above data, it is concluded that business environment has certain
factors which can effects the overall performance and productivity of company. This report also
covered different types of enterprises such as public private and voluntary business and
evaluated their mission vision objective. In this report PESTEL and SWOT analysis are also
conducted in which macro environment on the business and decision making of the company is
evaluated. With the help of these analysis organization are able to understand the current market
position which is being helpful for the decision making in order to grab new opportunities in the
market. It is recommended that strategy formulation is completed after understanding the
external, internal and legal environment of the company so that realistic business objectives can
be set. In addition to this interrelationship between organizational functions need to be promoted
by supporting flexibility to help timely attainment of business objectives.
16

REFERENCES
Books and Journals
Coles, T., Ritchie, B. W. and Wang, J., 2021. Building business resilience to external shocks:
Conceptualising the role of social networks to small tourism & hospitality
businesses. Journal of Hospitality and Tourism Management, 48, pp.210-219.
Dias, Á. and et. al., 2020. Developing sustainable business models: Local knowledge acquisition
and tourism lifestyle entrepreneurship. Journal of Sustainable Tourism, pp.1-20.
Filosofova, T. G. and Surkova, Y. A., 2020. Peculiarities of competitive behaviour of successful
businesses in digital economy. Russian Journal of Industrial Economics.
Ghouri, A. M.and et. al., 2020. Enhancing business performance through green human resource
management practices: an empirical evidence from Malaysian manufacturing
industry. International Journal of productivity and Performance management.
Ibouder, W., Fayolle, A. J. C. and Louitri, A., 2021. Exploring the next generation socialisation
to entrepreneurship in family businesses: insights from the Moroccan
community. Journal of Enterprising Communities: People and Places in the Global
Economy.
Jafari-Sadeghi, V.and et. al., 2021. Exploring the impact of digital transformation on technology
entrepreneurship and technological market expansion: The role of technology readiness,
exploration and exploitation. Journal of Business Research, 124, pp.100-111.
Korsakienė, R.and et. al., 2020. Strategic mapping of eco-innovations and human factors:
Business projects’ success revisited. In Strategic outlook for innovative work
behaviours (pp. 1-19). Springer, Cham.
Liao, S. H. and Yang, L. L., 2020. Mobile payment and online to offline retail business
models. Journal of Retailing and Consumer Services, 57, p.102230.
Marquis, C., 2020. Better business: How the B Corp movement is remaking capitalism. Yale
University Press.
Massaro, M. and et. al.,2021. Industry 4.0 and circular economy: An exploratory analysis of
academic and practitioners' perspectives. Business Strategy and the Environment, 30(2),
pp.1213-1231.
Moşteanu, D. and Roxana, N., 2020. Management of disaster and business continuity in a digital
world. International Journal of Management, 11(4).
Muhmad, S.N. and Muhamad, R., 2020. Sustainable business practices and financial
performance during pre-and post-SDG adoption periods: a systematic review. Journal of
Sustainable Finance & Investment, pp.1-19.
Pal, K., 2020. Information sharing for manufacturing supply chain management based on
blockchain technology. In Cross-Industry Use of Blockchain Technology and
Opportunities for the Future (pp. 1-17). IGI Global.
Raximova, G. M., Abdulxayeva, S. and Pirimkulov, O.M., 2020. FEATURES OF AUDIT OF
SMALL AND MEDIUM-SIZED ENTERPRISES. Theoretical & Applied Science, (6),
pp.101-105.
Scanlan, M. K., 2021. Prosperity in the Fossil-Free Economy: Cooperatives and the Design of
Sustainable Businesses. Yale University Press.
Sukaryavichute, E., Delmelle, E. and Hammelman, C., 2021. Opportunities and challenges for
small businesses in new transit neighborhoods: Understanding impacts through in‐depth
interviews. Regional Science Policy & Practice, 13(3), pp.1025-1041.
17