Business Environment P1 and P2.

P1 and P2
Business
Environment

COVER CONTENT

INTRODUCTION
Business environment is include all the
external and internal factors who have ability
to influence business operation of an
organization.

TYPES OF ORGANISATION
• There are three types of organizations
private, public and voluntary. Their reason
of existence and objectives are different.
• For some organization solving problems of
society is more important than earning
profit.

PURPOSE
Public sector – Their main aim is to make
affordable goods so every individual can afford
it.
Private sector – Profit is their main target.
Voluntary sector – They work in order to
solve different types of problems that are
present in this society.

SIZE AND SCOPE OF
ORGANISATION
Public sector organization are run by either state or
central government. They hold majority of share
and position in a company.
In private sector organization there are three mainly
types of entities. Sole trade, partnership and
company. Their size and scope do not relate to each
other.

Continue
• In sole proprietorship, one person do all the task
which is the main reason that their decision making
process is very fast.
• In partnership 2-20 work together in order to make
product and deliver service. They have limited
market.
• Size of companies may differ but they have large
market to explore.

Business Environment

CONCLUSION
At the end it can be concluded business
environment has capability to change business
decision taken by an organization. Purpose and
objective of an organization have direct connection
with it’s size and scope.

REFERENCE
 Pingali, P.L. and Roger, P.A. Eds., 2012. Impact of
pesticides on farmer health and the rice environment
(Vol. 7). Springer Science & Business Media.
 Harrison, R., 2011. Learning and development.
Development and Learning in Organizations: An
International Journal. 26(1).
 Chen, H., Chiang, R.H. and Storey, V.C., 2012. Business
intelligence and analytics: From big data to big impact.
MIS quarterly, 36.(4). pp.1165-1188.
 Klapper, L.F. and Parker, S.C., 2011. Gender and the
business environment for new firm creation. The World
Bank Research Observer, 26.(2). pp.237-257.

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