Business and the Business Environment

This report discusses the impact of the business environment on business operations. It covers different types of sport organizations, their size and scope, and the relationship between organizational functions. It also explains the positive and negative impact of macro environment on business operations.

Business and the
business environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Types and purpose of different sport organisations...................................................................3
Explain the size and scope of a range of different types of organisations..................................4
Explain the relationship between different organisational functions and how they linked to
organisational objectives and structure ......................................................................................6
Explain the positive and negative impact the macro environment has upon the business
operations ...................................................................................................................................7
Explain interval and external factors for identifying the strength and weakness .......................9
Explain how the strength and weakness are interrelated with the external macro factors .........9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment is the sum total of the external factors which can influence the
operations of the busie3nss organisation. The various factors may include customers,
government, suppliers, competitors, socio cultural, political, technological etc. these factors can
impact the business enterprise directly or indirectly. The environment is closely related with
business. There is a constant give and take relationship between environment and business. It is
very essential for the business to be aware of the actions and strategies of the external
competitors(Park, and et.al., 2017). This report will include the various topics such as the
different types of sport organisation, size and scope of the different organisations, relati0onship
between different organisational functions, positive and negative impact of the macro factors,
strength and weakness of the organisation and at last how the strength and weakness are
interrelated with the e3xternal macro factors.
TASK
Types and purpose of different sport organisations
There are three types of sports organisation with the different purposes which are
explained below:
Public sectors- These business organisations are supported and funded by the
government as these businesses are operating in the public sectors. These type of organisation
perform their work to provide services to the general citizens without earning any profit. For
example the UK sports is an public organisation in sport industry.
Purpose- The main aim of these organisations is to provide the best services by using the scare
resources in order to maximize the productivity of the country at the lower cost(Caiazza,
Shimizu, and Yoshikawa, 2017).
Legal construction

 Central - The public organisation or sectors are controlled by country's central
government as these sectors are funded by government through its treasury collection. State- Here only few of the departments has the authority to control over the public
organisations and there is no interference of the central government in these sectors.
 Local- The manciple authorities has the power to control over these sectors and generate
profit or revenue for the local communities.
Private sectors- In the private sector the companies are managed and run by an individual. The
companies work with the aim of the profit earning as these are not operated by the government
and there is no interference of the government. It is created by the forming new enterprise or
privatizing the public sectors. For instance, the Admiral sportswear is a private sport company.
Purpose- The main aim of these organisation is to make money out of the profits earned and
provide the employment by hiring the more workforce for the better productivity and to conduct
various activities(Sharif and Datta, 2019).
Legal constructions Sole proprietorship- It is the legal entity which is owned and operated by the single
owner. The single person is responsible for all the activities and liable for the profits and
debts in the business organisation.
 Partnership-The business is rune by two or more individual by sharing their all losses
and profit in their business organisation.
Voluntary sector- This sector is related to those organisations which are formed with the
aim of the creating the social impact and welfare of the society rather than profit maximization.
In this sector the organisations are referred as non profit organisations. These are not on national
and local government and different form private sectors. For instance, the Sobell Leisure centres
is a voluntary sport organisation.
Purpose- These organisation main purpose is to help the people and the societies for their
welfare and for the underprivileged people(Teece, 2018).
Legal construction- Trust- These sector are formed with the aim of money and property management to
define clear purpose. In this, the Trustee are responsible for contract on trust's behalf.
 Unincorporated disassociations- It does not contain the separate legal existence and
ideal for the small group with a membership as it is very quick and easy to set up.

Explain the size and scope of a range of different types of organisations.
Private organisation
Admiral sportswear- the company is the British internally recognised cricket, football and
sportswear brand. The organisation has a rich history in the fashion and football.
 Background- the company is known for the old English sports wear brand and focus on
the football association.
 Services- It provided the large variety of the clothing and football, focus on the ports
equipment of the football.
 Size- The organisation has about 75500 employees across the world with a 5 billion of
yearly turnover.
 Stockholders- the main stakeholders of the company are its players, suppliers and the
employees.
 Mission- To increase the profitability by offering the good quality of the products to its
customers(Wial, 2018).
 Vision- to make a strong brand image in order to become the well known business
organisation across the worldwide.
Public sector
UK sports- It is the government agency and is liable for the investment in the Olympic and
Paralympic sports in the United Kingdom.
 Background- The company leads in the Olympic and Paralympic sports by working with
the partnership to the international class success.
 Services- It assist the people by providing them funds and suggest the players that how
they can exploit their performance.
 Size- The organisation has invested in the sport as the British sports and have about 65
Olympics and 120 Paralympics award in London.
 Stakeholders- The main stakeholders of the company are the players, board members
and the partners.
 \Mission- They wish to drive and display in British medal attainment on the world stage.
 Vision- National inspired by Paralympic and Olympic attainment.

Voluntary sector
Sobell leisure centre
 Background- The respective sports facility is located in Islington, London. It is a central
provider of the sports and other fitness information for the residents of Islington.
 Services- It provides the variety of the fitness outfit including device and provide fully
equipped air conditioned gym.
 Size- It offering facility in 260 and operating close to 60 hubs related to the fitness
centres.
 Stakeholders- the main stakeholders of the organisation is staff, volunteers and trustees.
 Mission- To provide and promote the better opportunities for the sports activities to
individuals.
 Vision- It want to provide best quality service in the support commercial enterprise by
managing and rising the living standard.
Explain the relationship between different organisational functions and how they linked to
organisational objectives and structure
It is very important for the business organisation to maintain the relationship between the
different organisational functions in order to grow and be a successful business enterprise. It is
the important aspect to manage the relationship very carefully in order for the achievement of the
organisation productivity and profitability. The functions of the organisation are interdependent
on each other which are explained below;
 Marketing and Human resource management- The both the departments functions
together with the common objectives for the business enterprise. The human resource
management is responsible for training their employees in such a way they can market
their product or services in the bes way. The marketing department is responsible for
communicating the information related to the products or services(World Bank, 2018).
 Information technology and Sales- Here the both the departments are interrelated
because the it department provides the access to the sales department in relation to the
products and the required tools for the effective and efficiently pitching for the product or
service. The sale department is in touch with the It department in order to know the
innovation and ideas for increasing the productivity of the business organisation.

 Production and Finance- The both the departments functions together are interrelated in
such a way that finance department helps the production department in making a budget
for allocating the resources and raw material required for the production processes in the
business organisation(Slagmulder and Devoldere, 2018).
The structure of the business organisations is dependent upon the organisational functions
as the enterprise make their objectives and structure on the basis of the offerings and what they
serve to their customers. In context of the Admiral Sportswear, the company adopts the hierarchy
structure which affects the objectives of the business by restricting, innovation and limiting
collaboration. To increase the productivity of the business enterprise the managers regulate their
objectives and also forms an effective organisational assembly to maintain a respectful
movement of command at the workplace. The respective organisation offers product and services
to its customers and uphold an uniformity as well as control within the organisational. The
company maintains the consistency through the actual amount of the the control over the
business activities.(Alsaad and Taamneh, 2019).
Explain the positive and negative impact the macro environment has upon the business
operations
There is a tool which is knows as PESTLE analysis which helps in identifying the
external factors which can influence the operations of the businesses. It is very important for the
organisations to evaluate the external factors by such tool in order to prevent precautions or be
aware about the factors which can affect in the functioning of the business organisation. In
context of the Admiral sportswear, the positive and negative affects of PESTLE analysis is
discussed below:
Political- This factor is related to the government interference in the operations on the specific
industry or the organisation can impact the operations of the business enterprises. The various
political factors are tariffs, taxation, fiscal policies etc. In context of the Admiral Sportswear, the
positive impact is that the political stability of UK's economy is in favourable for the respective
company. Whereas the negative impact is that the sport industry is totally dependent upon the
government for funding.
Economic- This factor can directly impact the business organisations and on the long term basis.
The various factors may include inflation, foreign direct investment etc. The positive impact of
the economic factor in the company is that the UK economy is showing positive signals from

economical and inflationary crisis and its GDP is estimated higher than previous. Whereas, the
negative impact of this factor is that due to the depression in the economy can impact the
business organisation(Gebauer, Haldimann and Saul, 2017).
Social- This factor helps the marketers to identify the current market trend in the market so that
the companies can formulate themselves according to the trend. The various factors include
attitude, behaviour, lifestyle of the consumers. The company has a positive impact of the social
factor which is hat it assists to evaluate new opportunities of the selling and targeting new loyal
customers through the Olympics. Whereas, its negative impact is that in order to maintain their
brand reputation and its existence with in the market, the respective company has to adopt all
social culture in the changing surroundings
Technological- These factors are related to the innovation and development in the world can
impact the business organisation. This is the most powerful factor which can have a great
influence in the operations of the business enterprises. Such factors include research and
development, nationalisation, artificial intelligence etc. the positive impact of this factor for the
company is that the managers ability and knowledge has increase in a positive way for operating
and managing sports and as well well as increase in the performance. Whereas, the negative
impact can be the the audience wanted to connect with the players via online which is very
difficult for the company to maintain such digital platforms.
Legal- The factor focus on the rules and regulations or the laws which might affect the business
organisations. The various factors are employment laws, safety law etc. The antitrust law impacts
the company in a positive way whereas the negative impact can be if the company does not
comply to an law then it might face the legal consequences.
Environment- These factors are related to the uncertain change in the environment which can
affect the business organisation. Such factors include climate change, disasters, sustainability etc.
the positive impact on the company is that the organisation take care of the environment by
practising the sustainability programs. Whereas, the negative impact the company can face that
the use of the plastic is been banned and the customers are aslo more aware about it and if the
company does not conduct CRM practices that it might effect the image of the brand..

Explain interval and external factors for identifying the strength and weakness
Strengths Weaknesses
 The company is knows for the good
brand image and marketing budget
which makes it enable to core the big
sponsorship deals in relation to the
sports and athletes.
 As the competition is very tough in the
sport industry where the growth of the
company is slower in the existing
market.
Opportunities Threats
 By using the good and quality of
material the company can provide the
superior quality of products which will
help in attracting new customers.
 A rise in the raw material and policies
regarding tax may create a big hurdle in
the revenue of Admiral sportswear
vastly. It will result in a low operational
cost.
Explain how the strength and weakness are interrelated with the external macro factors
The strength and weakness are interrelated to the external factors because of the outside
factors the organisation is affected. The macro factors can be easily identified with the help of
the external macro factor analysis. The strength and weakness are the opposite factor which
gives the motivation and as well as demotivation to the business enterprises. Hence, if an
organisation is not performing well in its home nation and have different weakness then in this
situation they have to face different challenges to accomplish world wide(Cardoni, Kiseleva and
Lombardi, 2020).
CONCLUSION
From the above report it is conclude that it is very important for the business organisation
to be aware about the business external environment wh8ich can affect the operations and
functions of the business enterprises. There are different organisation on the basis of the different

sectors such as private, public and voluntary. There is the relationship between the different
organisational functions. For example production and finance departments are interrelated
because the finance department help the production in making a budget before purchasing the
raw material for the production processes. The Pestle analysis help in finding out the external
factors and their positive and negative impact on the company. The main strength of the
company is its brand image which help in growing.

REFERENCES
Books and Journals
Alsaad, A. and Taamneh, A., 2019. The effect of international pressures on the cross-national
diffusion of business-to-business e-commerce. Technology in Society, 59, p.101158.
Caiazza, R., Shimizu, K. and Yoshikawa, T., 2017. Cross‐border M&A: Challenges and
opportunities in global business environment. Thunderbird International Business
Review, 59(2), pp.147-151.
Cardoni, A., Kiseleva, E. and Lombardi, R., 2020. A sustainable governance model to prevent
corporate corruption: Integrating anticorruption practices, corporate strategy and
business processes. Business Strategy and the Environment. 29(3). pp.1173-1185.
Gebauer, H., Haldimann, M. and Saul, C.J., 2017. Competing in business-to-business sectors
through pay-per-use services. Journal of Service Management.
Park, G.,and et.al., 2017, May. A modeling framework for business process reengineering using
big data analytics and a goal-orientation. In 2017 11th International Conference on
Research Challenges in Information Science (RCIS) (pp. 21-32). IEEE.
Sharif, M.H.U. and Datta, R., 2019. Information Governance: A Necessity in Today's Business
Environment.
Slagmulder, R. and Devoldere, B., 2018. Transforming under deep uncertainty: A strategic
perspective on risk management. Business Horizons. 61(5). pp.733-743.
Teece, D.J., 2018. Dynamic capabilities as (workable) management systems theory. Journal of
Management & Organization. 24(3). pp.359-368.
Wial, H., 2018. 21. New Bargaining Structures for New Forms of Business Organization. In
Restoring the promise of American labor law (pp. 303-313). Cornell University Press.
World Bank, 2018. Doing business 2019: Training for reform.