Business and Business Environment: Types of Organizations, Interrelationships, and Impacts of External Environment

This report explains the types and purposes of organizations, their size and scope, and the interrelationships between various organizational functions. It also identifies the positive and negative impacts of the external environment on business operations, supported by specific examples. The report includes a SWOT analysis of Dyson Ltd. and its organizational structure.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Explain different types & purposes of organisations; public, private and voluntary sectors
& legal structures....................................................................................................................1
P2/ M1 Explain the size & scope of a range of various types of organizations.....................3
P3 Explain the relationship between various organizational functions and how they related to
organizational objectives & structure.....................................................................................4
M2 Analyse the advantages & disadvantages of interrelationships between organizational
functions & the impact that can have on organizational structure.........................................6
D1 Provide a effective analysis of the complexities of various types of business structures &
the interrelationships of the various organizational functions................................................6
P4 Identify the positive & negative impacts the external environment has on business
operations, supported by specific examples...........................................................................7
P5 Conduct internal & external analysis of particular organisations in order to analyse
strengths & weaknesses..........................................................................................................8
P6 Explain how strengths & weaknesses related with external factors..................................9
M4 Use appropriately SWOT/TWOS framework & justify how they impact the decision
making..................................................................................................................................11
D2 analyse the impacts that both external and internal factors have on business objectives &
decision making....................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business is the separate legal entity which main consideration is to earn more profits so that
they can sustain in the market. They are welcoming in order to analyse the where is macro
factors which are impacting the overall performance of the company(Dias and et. al., 2020).
Business is operated with the help of manager and their full control. The is required change
according to the business environment so that they can effectively contribute to the economy.
Internal factors of the organisation are concerned with the vision mission and objectives of the
company. On other hand, externals factors include political social legal and environmental
factors. Dyson is the considered organisation for this report. It is the multinational company
which is established in 1991 and the headquarter of the company is in United Kingdom. This
report will cover the various types of organisations and their background and scope. Moreover,
this report will analyse the interrelationship of various department and evaluate the impact of
external factors. SWOT analysis is being conducted in order to understand the internal
environment.
P1. Explain different types & purposes of organisations; public, private and voluntary sectors &
legal structures.
Business is defined as a separate legal entity which main focus is to generate higher profits
saving specific system effect of changing and property rights there are types of organisation
which are given below:
Public organizations
These are the type of company which is established with the aim of serving the society and
generating profit is their secondary objective. The motive of this organisation is to perform the
task and activities which are beneficial for the society and these organisations are directly funded
by the government only. The motive of such organisation stool softener the goods to the public
and the different types of public organisations are given below:
 Central government- this type of organisation is majorly controlled and owned by the
government of the United Kingdom and operations are being conducted in all the regions
of the nation.
1

 State government- the type of organisation which is managed and controlled by the
central government of the country but companies usually operate their business at state
level.
 Local government- such type of companies that is been controlled and old browser local
government in the United Kingdom and offering their product and services within the
local boundaries of the country.
Purpose: the purpose of the companies to serve the society and over such product which can
contribute in an innings in the living standards of the individual. They are being usually funded
by the tax raised with the help of government.
Example: British Broadcasting corporation
Private business organization
The type of company that is being controlled and owned by the private sector and don't even
get higher profits and different types of private businesses are given below:
 Sole proprietorship- the type of business in which a single individual responsible for
their profit and losses and they will have all the decision making power.
 Partnership- when two or more come together in order to can separate business venture
all share their profit and losses on agreed basis is known as partnership.
 Companies- it is the separate legal entity which is different from their owners and
controlled by the board of directors that is been hired by the shareholders of the company
itself.
Purpose: the purpose of private companies to generate higher profits and work for their own
benefits.
Example: Dyson Ltd.
Voluntary organization
Disaster business ventures which is owned and controlled by the group of people who are
considered as a social worker and their main consideration is to help the community and all the
investment is done in the form of donation charity or gifts and various types of voluntary
organisations are given below:
2

 Trust- it is the legal arrangement in which a single individual is interested for their assets
to the other in order to benefit for the other people in the society and main aim is to have
legal protection for their assets.
 Unincorporated association- it is the entity which is being in stylish why up to are more
people with the purpose of religious social charity in order to benefit the society.
Purpose: the main purpose of the companies to benefit the society without aiming to higher
profits.
Example: Shelter
P2/ M1 Explain the size & scope of a range of various types of organizations.
There are different types of businesses which is being having their own size scope and 3 type
of businesses which is been included in this report are are Dyson British broadcasting
corporation and shelter.
 Micro: the type of company in which less than 9 employees are working and having the
turnover of less than 2 million pounds.
 Small: the business venture in which 10 to 49 employees are working and generating the
revenue of less than 10 million pounds.
 Medium: it is the type of company in which 5o to 250 employees are working and
generates the revenue of around 50 million euros.
 Large: the type of organisation in which more than 250 employees are working and
generate revenue of 250 million pounds.
Dyson Ltd
 Background: it is the multinational company pictures established in UK in 1991 and of
household appliances.
 Product/ service offered: the company is designing and restaurant the household
products such as air purifier, dryer, bladeless fan, purifier and vacuum cleaner.
 Vision: The vision statement of the organisation is to offer the quality quotes so that they
can sustain in the market.
 Mission: the mission statement of the company to inspire new generation aise toppers
mentorship and money in order to handle various problems by the young people.
 Objectives: objective of the company is to attract large group of customers as well as
engineer so that they can resolve certain problems within the organisation.
3

 Stakeholders: the owner in the chief engineer of the organisation is James Dyson and the
chief light in engineer of the company is Jack Tyson.
British Broadcasting corporation
 Background: it is the the national broadcaster in the country of United Kingdom and the
headquarter is in London.
 Product/ service offered: leading broadcaster at the national level and serving search
group of customers. It is dealing in mass media industry and offering current news and
updates to the individual.
 Vision: the vision statement of the organisation is true of a nation with the speak to
peace.
 Mission: mission statement of profit organisations to provide provisions of impartiality
and high quality output in order to inform and educate the people.
 Objectives: the objective of the organisation is to offer the latest information and use to
the individual by which they can engage in the world that is around them.
 Stakeholders: the chairman of the company is Richard Sharp.
Shelter
 Background: the companies working with the campaign for the bed house and homeless
people in the Scotland and England is non profitable company. Companies founded in
1966.
 Product/ service offered: companies offering advice to the people for their tough Times
and also managing The homes for the people who don't have home with the local
authorities in order to improve lives of homesless people.
 Vision: Vision statement of the organisation must improve the living of the people who
are not having homes in the England.
 Mission: mission statement of the company is to build a better society in the country.
 Objectives: objective of the organisation is to grow the community of volunteers why
with thickened builder commitment of understanding and respect in the society.
 Stakeholders: founder of the company is Bruce Kenrich.
4

P3 Explain the relationship between various organizational functions and how they related to
organizational objectives & structure.
Every organisation is having various department and with the help of them they conduct
various tasks in order to offer a new product in the market and interrelationship of various
departments of Dyson explained as follows:
 Finance and production- finance is the unit which is concern for procuring and
allocating the funds so that they can have smooth running in their business operations. On
otherhand, production unit is engaged in introducing new product in the market so that
they can retain high availability and growth. In relation to Dyson, finance department
allocate the fund for the production department and on the basis of this they can hire the
innovative and advanced technology for their production in order to get higher success in
the market. These two departments went ordinate effectively so that they can have the
sufficient fund in order to produce the products that can meet the needs and wants of their
customers.
 Human resource and marketing- HR unit is concern with the hiring the deserving
candidate by analysing the skills and abilities of the individual so that they can give their
best in attaining organisational goal. They are majorly concern for the recruitment and
selection of the employees within the organisation. Marketing unit is related to the
advertisement of their product and services to the large audience so that they can
contribute in generating higher profits and revenue in the market. These two departments
make the best of their resources so that talented employees can promote their brand in an
appropriate manner and contribute to the growth and success of the company.
 Research and development and Information technology- R&D unit is concern with the
conducting market research so that they can analyse the needs and wants of the customers
and the emerging trends of the market so that they can effectively often best product to
their potential customers generate high profits and revenue. Information technology is
related to the use of computer in digital media so that is easy for the company to operate
their business and an appropriate manner. When These department effectively co-
ordinate with each other then research and development department can get the
innovative and digital tool for research and development so that they can with the market
leader in front of large audience.
5

Organizational structure
It is the pathway of the system which allowed the company to distribute their various
tasks in the subgroups so that various operations in the organisations can be carried out in an
appropriate manner and different types of organisation structure are given below:
 Hierarchical structure- it is the organisation structure in which one way communication
takes place and leader and manager assign the duties and responsibilities to their
employees and they are liable to follow them. There is no right which is given to the
employees for their valuable feedback and suggestions as autocratic leader establish such
type of structure in their business.
 Flat structure- it is the type of organisation structure in which all the employees are free
to give their valuable feedback and suggestions and top level management is having full
control over the decision making power. Dyson as following this type of organisation
structure in which there is a less intervention of middle management in order to get
effectiveness in the business.
M2 Analyse the advantages & disadvantages of interrelationships between organizational
functions & the impact that can have on organizational structure.
It is necessary for business organisation to work in an appropriate manner with the help of
coordinating between all the departments of the company so that they can have better outcomes
and result in their organisation. This also helps in achieving the organisational goal and generate
a profitability in the market. When the department is a having good coordination with each other
then this can eliminate unnecessary argument and conflicts at the workplace which can in the
overall productivity of the company and employees also able to focus is on their set objectives
and targets. Inter part mental relationship can also help in identifying the High working
employees which contribute to the growth of the business.
D1 Provide a effective analysis of the complexities of various types of business structures & the
interrelationships of the various organizational functions.
The organisational structure that is being used by the company and having their own in
ancient way in order to reach the certain objectives and complexity. For instance, when the
private company emphasising on offering motivation to the employees so that they can
contribute to the high level of work which is being completely on the by the private individual.
6

Public organisation emphasizes on serving the society so that they can influence the living
standards of the individual and do some social welfare in the society. In private organisations
there are less intervention determinant less complex and public organisation is more complex
with the control of the government.
The relationship of such department has given positive way of working to the various
functional areas of Dyson which can effectively dependent on each other in order to get better
result within the company.
P4 Identify the positive & negative impacts the external environment has on business operations,
supported by specific examples.
Pestel analysis is the framework of analysing the macro environment which is impacting
the overall functionality of business and there are different ways by which certain strategies can
be made in an appropriate manner. Various factors of tips framework is explained as follows:
Pestle Analysis of Dyson
 Political factor: the positive impact of political factors on Dyson is political law related
to the local market segments and having strong impact. The negative impact impact is,
the government used to make a stable condition for the organisation that affect overall
devalue and sale of the company. Supply chain management with an ongoing production
in an organisation.
 Economic factors: companies mainly include the positive factors which are impacting
the exchange rate in the interest area and growth of the company and there are different
nations in which the growth rate is high and it is being used to the fact that inflation rate
and changing our economy affect the consumer buying behaviour and various pricing
strategy also affect the overall performance of the company.
 Socio cultural factors: the negative impact of this factor is changed in a demographic
which can leads to change in the demand of the customer that are seeking for the quality
goods and services. The positive impact of Tyson is that they are usually create
innovative ideas by which they can expand the market at global level and also use this
strategy in order to reduce the overall cost of their production and basically emphasizes
on product which can made the lifestyle of the individual.
 Technological factor: Dyson is making best use of their advanced and innovative
technologies which helps in meeting the changing demands of their potential buyer which
7

can positively affect the profitability of the organisation. They are using various research
and development techniques in order to maintain and digital approach while doing
advertisement. Innovative technology can lead to huge investment which can negatively
impact the overall company.
 Environmental factor: Dyson is using clean equipment in their production which create
positive impact on the environment and also have a anus related to the investing aspect in
the project with the aim of balancing ecological aspect in the environment. Negative
impact is people making pollution and creating imbalance regarding saving the
environment and sustainability.
 Legal factor: Dyson 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 organisation. This is quite difficult and create
negative impact to the mental health of the individual due to restrictions and law which is
being imposed by the government of the country.
P5 Conduct internal & external analysis of particular organisations in order to analyse strengths
& weaknesses.
When the company want to have have more success and appropriate results it is necessary
for the company to conduct a micro and macro analysis by which they can evaluate the strength
and weakness of Dyson. They are doing pray in the technical field and expanding their business
across the globe what's the competition rapidly increasing so it is important for the company to
evaluate the impact of internal and external factors.
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 Dyson
Strengths Weakness
 Dyson is having good brand image in
electronic items and provide services
across the globe.
 The companies adopting high level of
 Dyson have faced many controversies
for their product and reducing brain
image.
 Field operations of washing machine
8

creativity and technology which also a
strength for the company.
 Companies more talented about the
research and development which is
helpful to identify the requirements of
their buyers so that company can to
the required modifications and
changes.
 They are focusing on the time of their
product so that you can easily by their
product.
also considered as major weakness of
the company.
 Large number of competitors in the
technological industry also affect the
overall performance of the company
in the market.
Opportunities Threats
 Regulate various business operations
so that they can attend more
international identifications.
 The company can gain more
competitive advantage by targeting the
local market across the country.
 Company can work in small business
and enterprises through joint venture
and partnership in order to improve
their market share and growth.
 Online platform also evaluate is as
effective applications which can use to
target the massive populations in the
market.
 Latency in their goods in comparison
to their rivals is considered as a threat
for the company.
 Continuous changing demands of the
market and uncertainty of endemic
also have huge threat that for the
company.
 In modern time, technology skating
main concern of the people and I level
of competition are there in the
industry and they are constantly
updating their technologies in
comparison to their rivals.
P6 Explain how strengths & weaknesses related with external factors.
 Political Factors
9

Strengths Weakness
 Company is following all the laws and
procedures in an appropriate manner
which can boost the performance of
the company.
 Continuous changes in the political
processes and law according to the
changing scenario of the market can
be the weakness for the Dyson.
 Economic Factors –
Strengths Weakness
 Dyson can adopt the competitive
pricing approach the highest
competition market position at whole.
 Fluctuations in the market can be the
big problem for the Dyson which can
provide adverse effect world dealing
with the international countries and
eventually company able to gain less
amount of foreign currency.
 Social Factors -
Strengths Weakness
 Companies related to work at research
and development violet tekken easily
determine the needs of their potential
customers can be helpful for making
some changes and add on specific
features in their products.
 Huge competition and technological
industry is a big business for the
company which make the weak
performance of them.
 Technological Factors –
Strengths Weakness
 Company can conductor effective
hiring and appointed reservation
candidate who can sinus and
 Tyson can charge mood coast to their
highly innovative products which can
affect their overall marketing.
10

innovative product in order to attract
the large group of customers and
provide good value to their product.
 Legal Factors -
Strengths Weakness
 Company can take the legal procedure
and some particular modification
related to the laws which can to
marketing appropriately.
 Frequent change in the laws and legal
policies can have the adverse impact
on their business activities other
countries and can be a weekness for
them.
 Environmental Factors –
Strengths Weakness
 Company majorly emphasizes on
environmental activities and also
contributing with the green marketing
so that Dyson can effectively sustain
in the market and considered as a
strength for the company.
 Technological changes and high
level of networking connectivity can
affect the overall functionality of the
business.
M4 Use appropriately SWOT/TWOS framework & justify how they impact the decision making.
By conducting a SWOT analysis it is evaluated that there are certain strength and
weakness which is being evaluated by the Dyson and helpful to determine the positive and
negative impact on their strength and weakness of the business. Dyson is losing strength
effectively by which they can take the right decisions in order to meet the future opportunities for
their growth. Do yaar continuously working to reduce their weakness which can help for their
strong points in order to convert them their weakness into strength. Competition is the main
product of the company and this can be removed by taking right decision and using innovative
techniques in comparison to the rivals.
11

D2 analyse the impacts that both external and internal factors have on business objectives &
decision making.
Macro and micro environment factors provide a direct impact on the business and their
objectives. The constantly influence the decision making of the organisation. As per the above
discussion it is evaluated that mode on the company and diaphragm is continuously working on
their regular operations and keep sharpen their strength food that they can meet huge competition
in the market and convert their business is to strength. Company can offer effective training to
their employees so that they can learn extension competences on the basis of current scenario of
the market by taking effective decisions that are beneficial for the company's growth.
CONCLUSION
It is analysed from the above discussion that business environment have certain factors
which can impact the overall productivity and performance of the organisation. It is important
for the enterprises to pay more attention on their operations organisation structure and legal
structure so that they can appropriately maintain various tasks in relation to the external and
internal environment. This report also covered different types of enterprises such as public
private and voluntary business and evaluated their mission vision objective. Moreover, PESTLE
analysis is been conducted in which macro environment on the business and decision making of
the company is evaluated. With the help of SWOT analysis company can effectively value with
the current market position of the company which is being helpful for the decision making in
order to grab new opportunities in the market.
12

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.
13