Business and the Business Environment: Purpose, Structure, Size, Scope, and Interrelationship between Organizational Functions

This report discusses the purpose, structure, size, and scope of different types of organizations, including public, private, and voluntary organizations. It also explores the interrelationship between different organizational functions, such as marketing, operations, human resources, finance, technology, and customer services. The report uses JD Sports as a case study to illustrate these concepts.

Unit 1
Business and the Business
Environment

Content
Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
P1. Determine the purpose and structure of different type of organisation.................................1
P2. State the size and scope of a range of different types of organisations.................................3
P3. The relationship between different organisational functions and how they link to
organisational objectives and structure........................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business environment is most essential element of any type business. It includes two factor
such as internal and external factors which work with each other and influence each other to
effect the operation and environment of business (Gorla, Chiravuri, and Chinta, 2017). To
analysis this report, JD Sports is the British retail company located in Bury, Greater Manchester
in England. The company was established in 1981, by John Wardle and David Makin. The
company is the supplier of sports product and sponsor various players, teams and association of
football. The report covers topic such as purpose, structure, size and scope of different type of
organisation. Further it covers interrelationship between different department of organization.
MAIN BODY
P1. Determine the purpose and structure of different type of organisation.
In business there are different type of organisation such as public, private and voluntary
and they operate their business activities to achieve the particular purpose. Each organisation has
their legal structure in which they perform their task and duty to achieve the purpose for which
they form.
Public sector organisation
The public organisation is formed, owned and run by the government. They provide
goods and social services for the help and welfare of the society. They run their business with
money received from taxes by government. One of the example of public organisation is NHS
(National Health Services) which is public health services of government administration in UK.
They provide hospital and specialist services, local health authority services and dental or
general practitioner services for the welfare of UK's community.
Purpose: The main purpose of NHS is to provide their health services or treatments to improve
the mental and physical health problems of people in UK.
Legal structure: The three level in Legal structure of public sector organization are;
National level: In this level, all the major decisions, law and policies are made and
approved by the members of parliament or the President of the country. They form rules and
regulation and provide funding for the working of public organisation at state or regional level
(Khajeheian, Friedrichsen, and Mödinger, 2018).
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State level: In this level, the members of organisation works to provide goods and services for
the welfare of people in state. Also they give funding to the various organisation works at
regional level: In this level, the members of organisation work for the betterment of people and
provide goods and services at local level. They works for the overall development of people and
many backward area in their region.
Private sector organisation
This type of organisation is privately owned, managed and controlled by the person or
group of persons without any inference of government. They provide their goods and services to
the people to earn maximum profit and acquire huge market share. One of the example of private
organisation is JD Sports, it is the retail company of sports fashion in UK. They supply goods
related to the sports such as cloths, footwear and accessories. They also sponsor multiple football
associations, teams and players.
Purpose: The main purpose of JD Sports company is to provide their goods and services to earn
maximum profit and acquire big market share for the growth and development of the company.
Legal structure of private sector organisation are below:
Sole proprietors: It refers to the small business which is run and operate by the one
person. The owner of the company brought all the finance and asset for the operation of business
to earn profit as well as liable for liabilities related to business.
Partnership: It refers to macro business which is run and operate by the multiple persons
and have various owner. The responsibility and profit is divided among them according to their
share
in the company.
Limited liability companies and corporation: It is formed to protect the asset of
owners and liabilities rest with the organisation itself without any burden on personal assets of
owner.
Voluntary organisation
These type of organisation is voluntary run by the people to full their basic needs without
the motive of earning money (Gaganis, Pasiouras and Voulgari, 2019). One of the example is
British Heart Foundation, they work to provide funding for cardiovascular research, care an
education.
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Purpose: The main purpose of this organisation to provide their services for funding medical
research and hospitals to help or spread awareness among people.
Legal structure of voluntary organisation are underneath:
Trust: Is formed by the trustee for the particular purpose for the welfare of society.
A limited company by guarantee: It refers to company which has separate legal entity
from its member.
Unincorporated associations: In this organisation, people voluntary come together to
carry out the objective of social service instead of making profit.
P2. State the size and scope of a range of different types of organisations.
Public sector organisation (National Health Services)
 Background: It is established in 1946 by National Health Services Act, for the publicly
funded healthcare system of the UK.
 Product and services: They provide hospital and specialist services, local health
authority services and dental or general practitioner services for the welfare of UK's
community.
 Size and scope: It has around1.2 million full time same staff and it has wider scope in the
field of health services.
 Vision: to provide and deliver better care, better health and better value to the people.
 Mission: To deliver quality of care every day to each person of the country. Stakeholders: Regulators, commissioners, patients, customer proxies, local service
providers and external influencers.
Private sector organisation (JD Sports)
 Background: The company was established in 1981, by John Wardle and David Makin.
 Product and services: They supply goods related to the sports such as cloths, footwear
and accessories. They also sponsor multiple football associations, teams and players.
 Size and scope: It has 30,292 employees across 2,400 shops in 18 nations and also have
wider scope for the growth in international market.
 Vision: To grow their market share and earn maximum profit to become the most
profitable and trusted company in the globe.
 Mission: To provide large variety of quality products related to sports for the satisfaction
of customers.
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 Stakeholders: It has multiple stakeholders which are interested in investing in the
business such as customers, suppliers and other investors.
Illustration 1: Revenue of JD Sports Fashion Plc worldwide from
financial year 2011 to 2021

Voluntary organisation (British Heart Foundation)
 Background: the foundation was established in 1961, by the group of medical
professionals
 Product and services: they work to provide funding for cardiovascular research, care an
education for cause, treatment and solution of heart diseases.
 Size and scope: It has around 4,000 employees in 730 shops and also it sells 85,000
items daily in their electrical shops.
 Vision: To provide services to free the world from heart attack and fear of circulatory
and heart disease.
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 Mission: To provide finance in the research and fight against the heart and circulatory
disease.
 Stakeholders: It have many corporate partners to provide funding them. Such as Tesco,
Nationalwide Bank, specialist advisers, patients, and many local organisations.
P3. The relationship between different organisational functions and how they link to
organisational objectives and structure
An organisational function is the set of activities includes marketing, operations, human
resources, finance, technology and customer services of the organisation (Shageeva, Erova, and
Prikhodko, 2017). These functions state the relationship between the various department of
business which determine the chain of command flow by the different level. In the context of JD
Sports, the company follow divisional structures which has many branches. The company have
different line of products such as clothes, shoes and accessories of sports. Each product line has
different functional groups to conduct smooth working of their product.
Operation and human resource management: In JD Sports operation department are
interlinked with human resources department as they give the information to HR such as number
of employees required, about the work and position of employees so they decide the salary,
promotion and training of employees and hire new employees for the given task. Some time it is
helpful for direct communication and complete the task on time. As well as it has disadvantages
also because employees of each department have different mindsets and lack of knowledge about
each other’s work. So, there is chances of misunderstanding and conflict among them.
Finance and technological department: In JD sports company, they produce goods related
to the sports which require huge amount of capital to produce their product. For producing
fashion products, they have to install various technology. So these departments are interlinked
with each other such as when the technological department purchase new machines then they
sent and discuss about the budget and cost of machines and technology. It has various advantages
such as they directly communicated and sent their budget with each other (Kokodey, Gnezdova
and Lomachenko, 2018). Further, it has various disadvantages also such as disagreement and
conflict among each other about the budget and also finance have not much knowledge about the
technology as well as technological department do not know the requirement of capital for other
functions and expenses.
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CONCLUSION
From the mentioned information, it is concluded that business environment includes various
factors that have direct and indirect impacts on the growth, performance and profitability of
business. Organisational functions state the relationship between the various department of
business which determine the chain of command flow by the different level.
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REFERENCES
Books and Journals:
Gaganis, C., Pasiouras, F. and Voulgari, F., 2019. Culture, business environment and SMEs'
profitability: Evidence from European Countries. Economic Modelling, 78, pp.275-292.
Gorla, N., Chiravuri, A. and Chinta, R., 2017. Business-to-business e-commerce adoption: An
empirical investigation of business factors. Information Systems Frontiers, 19(3),
pp.645-667.
Khajeheian, D., Friedrichsen, M. and Mödinger, W., 2018. An introduction to competitiveness in
fast changing business environment. In Competitiveness in emerging markets (pp. 3-11).
Springer, Cham.
Kokodey, T., Gnezdova, I. and Lomachenko, T., 2018, October. Modeling the global business
environment based on polycyclic theory. In The International Science and Technology
Conference" FarEastСon" (pp. 487-499). Springer, Cham.
Shageeva, F. T., Erova, D. R. and Prikhodko, L. V., 2017, September. Training the achievement-
oriented engineers for the global business environment. In International Conference on
Interactive Collaborative Learning (pp. 343-348). Springer, Cham.
Online:
Revenue of JD Sports Fashion Plc worldwide from financial year 2011 to 2021. [Online].
Available through <https://www.statista.com/statistics/438812/jd-sports-fashion-
revenue/>
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