Business Environment: Overview of Business Organizations, Legal Structures, Competition Policy, Fiscal and Monetary Policy, and Globalization

This report provides an overview of various kinds of business organizations in various sectors, legal structures, competition policy, fiscal and monetary policy, and globalization. It also assesses the impact of these factors on business organizations, competition, and the economy.

Business Environment

Table of Contents
Introduction......................................................................................................................................1
Task 1...............................................................................................................................................1
(Covered in Ppt).....................................................................................................................1
Task 2...............................................................................................................................................1
Introduction .....................................................................................................................................1
Give an overview of the various kinds of business organisations in various sectors.............1
Discuss various legal structures including their advantages and disadvantages....................2
Explain differences among public and private ownership considering the various kinds of
financing used for both...........................................................................................................3
Assess UK Competition policy and legislative structure surrounding anticompetitive
practices. ................................................................................................................................3
Discuss how the Competition and Markets Authority function to review business organisation
practice and consequence on the consumer. ..........................................................................4
Discuss the objectives and fiscal and monetary policy tools the government can utilize to
regularize the economy...........................................................................................................4
Assess an understanding of globalisation and how it impact business organization,
competition, and economy......................................................................................................5
Conclusion ......................................................................................................................................5
REFERENCES................................................................................................................................1

Introduction
Business environment is defined as sum collection of all the internal and external
environment present in the environment leading to impact the profitability and performance of
the organisation. It is also refers to the all the factors that affect the firm's ability to build and
maintain effective successful relationship (van Tulder, Verbeke and Piscitello, eds., 2018). For
this presentation Marks & Spencer is taken as the base company. Marks & Spencer is one of the
successful retail brand offering clothing, home products as well as food products. It was founded
in 1884 by Michael Marks and Thomas Spencer, having more than 959 stores. This presentation
highlights the business environment of the firm using PEST and Porter's five forces model.
Task 1
(Covered in Ppt)
Task 2
Introduction
Business organisation is an entity formed for the purpose of smoothly carrying on
commercial enterprise. It allows the business organisation to outline how business organisation
are structured as well as how their structure allows them to meet their goals and objectives.
Proper formation of business organisation allows them to smoothly carry out their operation and
satisfy the needs and wants of the customers. This report highlights various kinds of organisation
in various sectors along with the legal structures required. In addition to this difference among
public and private ownership (Ketcham, Nigro and Roberto, 2018). And the UK competition
policy and legislative framework along with analysis of how competition and market authority
operates is also highlighted. Furthermore, the understanding of objectives fiscal and monetary
instruments to regulate the economy and analysis of globalisation is also highlighted
Main Body
Give an overview of the various kinds of business organisations in various sectors.
Private sector: It is kind of sector which is owned and managed by the private sector or
an individual. These kind of organisations are started with the aim of maximising profit and
satisfying the needs and wants of the customers. The various kind of organisation in private
sector are mentioned below:
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Sole proprietorship: It refers to the kind of organisation which is owned, managed and
controlled by the single person. All the risk and profit incurred is considered by the owner
himself.
Partnership: It is defined as the two or more individual agrees to join together in order to
manage the work. All the profit and loss incurred is shared among partners equally as per the
partnership deed.
Company: It is refereed to an artificial entity formed or incorporated to carry out commercial
activity.
Public sector: Another kind of sector is the public sector, these are owned and managed
by the government bodies. These are started with the aim of satisfying the needs and wants of
general public. The various kind of organisation in public sector are mentioned below:
Departmental undertaking: It refers to one of the department of the government having no
separate existence that the government, it functions and operate under department of
government. Such as Railway, telephone services and so on (von Delft and Zhao, 2021).
Public corporations: It refers to the corporate body formed through special act of parliament,
fully controlled and financed by government. Such as Air line industry.
Government company: These kind of organisation in which the 51% of paid up share capital is
held by the central or state government (Colpan and Cuervo-Cazurra , 2018).
Discuss various legal structures including their advantages and disadvantages.
The main legal structure that can be used by the organisation along with their advantage
and disadvantages are mentioned below:
Sole trader: It is refers to kind of structure which is owned, managed and controlled by the
single owner. All the risk and profit is managed and considered by the sole trader (Clegg, Pitsis,
and Mount, 2021).
Advantage: All the profit incurred is enjoyed by the owner himself.
Disadvantages: All the operations and task is managed by the individual alone.
Partnership: It is refers to the kind of organisation which is incorporated by the mutual
agreement among the two and more partners. All the risk and profit is equally divided among the
partners as per the partnership deed.
Advantage: Loss can be divided equally among partners
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Disadvantage: Any kind of dispute among partners can lead to impact the overall
operation and functions of business.
Limited liability company: It is kind of entity which is owned and managed the individual.
These are started with the aim of earning profit and satisfying the needs and wants of the
customers through offering them quality products.
Advantage: The company enjoys limited liability
Disadvantage: Starting of the company involves huge cost and capital.
Explain differences among public and private ownership considering the various kinds of
financing used for both.
Public company are kind of organisation which are owned and managed by the
government bodies, these are started with the aim of satisfying needs and wants of the general
public. These kind of companies comes under the control of government bodies as all the
operation and functions are controlled and managed by the government himself. Whereas in case
of private company, these are owed and managed by the individual in order to enhance
profitability and satisfy the needs and wants of the customers. The main focus of these kind of
organisation is to gain maximum profit in the marketplace and sustain for long period of time
effectively. Starting of these kind of entity involves huge cost, the capital. There is different kind
of financing used by both the organisation (Pang and et. al., 2019). There is difference among the
public finance and private finance, the public finance effectively focus on adjusting the income
on the basis of expenses. Whereas in case of private sector, it manipulates the expenses on the
basis of future income. The personal and business finance are two essential part of the private
finance. The private finance is the study of income and expenditure, borrowing and so on of the
individual and business firms. Whereas the public finance is effectively focused on the revenues,
incomes and expenditure of the economy or government.
Assess UK Competition policy and legislative structure surrounding anticompetitive practices.
The competition law is describe to practices that determine and handle the competition to
the damage of the consumers. It also includes or highlights the market position of the business,
anti competitive agreements among the business, as well as merger and takeovers which if
allowed would have result in the lessening of the competition. This kind of law leads to prohibits
and penalised any kind of anti competitive practices done by the organisation operating in the
marketplace effectively. The main objective of these kind of policy is to effectively address the
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market failure and develop a framework of policy and regulation that leads to facilitating the
competitive outcome of the marketplace (Moeran, 2021). In UK market the anti competitive
behaviour is prohibited in the chapter 1 and two of the competition act 1998. these kind of law
restrict any kind of anti competitive agreements among the businesses. The UK competition
policy helps in controlling and handling these anti competition practices and leading to promote
smooth and positive environment.
Discuss how the Competition and Markets Authority function to review business organisation
practice and consequence on the consumer.
The competition and marketplace authority plays an essential role in investigating and
merging which can lead to handling and restricting the competition in the marketplace. It helps in
effectively investigating where can be any breaches of UK or EU law against anti competitive
agreements or any kind of abuse by the dominant position. It mainly includes five main strategic
goals from offering effective enforcement to deter wrong doings, it also plays an essential role in
protecting consumers form any kind of wrongful acts and educating business. Extending
competition frontiers through considering the markets regime leading to enhance the way the
competition work in the marketplace effectively and efficiently (Wu, Liu and Su, 2020). The
competition and market authority ennobles the organisation to effectively and smoothly carry out
their work and gain competitive advantage in the marketplace. It also protect the business
organisation from any kind of unfair practices as well as protecting them from any kind of anti
competition practices happening in the marketplace.
Discuss the objectives and fiscal and monetary policy tools the government can utilize to
regularize the economy
The goal of both monetary and fiscal policy is to create an kind of economic environment
under which the development is steady and constructive as well as inflation is also effective and
stable leading to the overall growth and development of the economy. The fiscal policy helps in
determining the measures employed through the government in order to stabilize the overall
economy through manipulating the level and proper allocations of the taxes and government
expenditure. The fiscal policy is also considered to be change in the budget deficit. Whereas the
monetary policy refers to the fluctuation in the short term interest rate. Both the tool can be
effectively considered by the government in order to effectively regulate the government during
the time of recession (Arnold, Beauchamp and Bowie, 2019). It will also help in enhancing the
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employment rate as well as improving exchange rate. It will also lead to improving the balance
of payment for the business organisation.
Assess an understanding of globalisation and how it impact business organization, competition,
and economy.
The increasing growth in globalisation has enabled the large number of business
organisation to specialise and as well as expand their operation and market size effectively. It
help the business organisation to grab new opportunity available at the international level leading
to enhance the overall performance and profitability of the business. It also helped the business
organisation to increase their customer base and improve their brand image in the marketplace
effectively (Buckley, Enderwick and Cross. eds., 2018). In addition to this it has also helped the
business organisation to enhance the intensity of research and development, innovation. It has
also made it easy and smooth for the new organisation to start competing at the international
level. With the growing competition at the international market it leads small business to directly
get exposed to the business competition. It also allow companies to determine lower cost ways to
produce their product and services.
Conclusion
From the above report, it has been concluded that proper understanding of organisation
helps them to smoothly and effectively carry out their commercial activity and gain competitive
advantage in the marketplace effectively and smoothly. This report helps in analysing various
kind of organisation along with different legal structure. It is analysed that there is difference
among public and private ownership, also the competition and marketplace authorization
function to review business organization practices. Also various fiscal and monetary plan of
action are used to regularize the economy as well as globalisation directly influence the business,
economy is also analysed in this report.
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REFERENCES
Books and journals:
van Tulder, R., Verbeke, A. and Piscitello, L. eds., 2018. International business in the
information and digital age. Emerald Group Publishing.
Ketcham, D., Nigro, P. and Roberto, M., 2018. Do persistence and passion matter: Evidence
from the educational testing service major field test in business. Journal of Education for
Business, 93(3). pp.112-118.
von Delft, S. and Zhao, Y., 2021. Business models in process industries: Emerging trends and
future research. Technovation, 105. p.102195.
Pang and et. al., 2019. Integrative capability, business model innovation and performance:
Contingent effect of business strategy. European Journal of Innovation Management.
Moeran, B., 2021. The business of ethnography: Strategic exchanges, people and organizations.
Routledge.
Wu, L., Liu, H. and Su, K., 2020. Exploring the dual effect of effectuation on new product
development speed and quality. Journal of Business Research, 106. pp.82-93.
Arnold, D. G., Beauchamp, T. L. and Bowie, N. E., 2019. Ethical theory and business.
Cambridge University Press.
Buckley, P .J., Enderwick, P. and Cross, A. R. eds., 2018. International business. Oxford
University Press.
Clegg, S. R., Pitsis, T. S. and Mount, M., 2021. Managing and organizations: An introduction to
theory and practice. Sage.
Colpan, A. M. and Cuervo-Cazurra, A., 2018. Business groups as an organizational
model. Colpan, A. and Cuervo-Cazurra, A.

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