Business and Business Environment: Types of Organizations, Interrelationships of Organizational Functions, and Impact of Macro Environment on Business Operations

Business and Business
Environment
Table of Contents

Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types and purpose of the organisations and their legal structure......................3
P2. The size and scope of the different types of organisation................................................4
M1. Critically analyse the structure, size and scope of different organisations in relation to
product and services of the organisation................................................................................6
TASK 2............................................................................................................................................6
P3. The relationship between the organisational functions and their link with organisation
objective and structure............................................................................................................6
M2. Critically analyse the advantage and disadvantages of the interrelationships between the
organisational functions and their influence over organisational structure............................8
D1. Critical evaluation of complexities of types of business and interrelationships of different
organisational function...........................................................................................................8
TASK 3............................................................................................................................................9
P4. Identify the positive and negative impacts of the macro environment on business
operations...............................................................................................................................9
M3. Apply the PESTLE model to support detailed analysis of the macro environment.....11
TASK 4..........................................................................................................................................11
P5. Internal and external analysis of the Tesco plc to identify the strengths and weaknesses11
M4. Analysis of the SWOT model and their influence on decision making........................12
P6. Strengths and weaknesses interrelation with external macro environment....................12
D2. Critical evaluation of the macro and micro factors on business objectives and decision
making..................................................................................................................................15
Conclusion.....................................................................................................................................15
REFERNCES:................................................................................................................................16
Books and Journals:..............................................................................................................16

Introduction
Business environment is the place or the surrounding in which business conduct its
operations and perform all its functions (Kurniawan and Yun, 2018). The business environment
plays crucial role in influencing the operations of the business either positively or negatively.
The business environment consists of factors like environmental, political. Social etc. that
provide the business organisations opportunity to foster their operation and earn more profit and
also act as threat in declining the productivity and profitability. The present report will discuss
about three organisation types i.e. BBC is the type public sector organisation and is world’s
leading public service broadcaster, Tesco Plc is the type of private sector organisation and is the
leading multinational groceries and general merchandise retailer headquarter in Welwyn Garden
City, England and Oxfam a voluntary type organisation founded in Oxford, London and is the
charitable organisation which focus on mitigation of the poverty globally. Further in the report,
interrelationship of the various functions of the organisation and they relate to organisational
structure. Report also demonstrates the impact of macro environment on business operations. At
last the internal strengths and weaknesses of the business and its relationship with external macro
factors is discussed.
Main Body
TASK 1
P1. Different types and purpose of the organisations and their legal structure
There are different types of the business organisation in the business environment and each
organisation is categorised into those different types on the basis of the purpose and aim of
earning the profits. There are three basic types of the organisation in business environment and
each has its own purpose and legal structure that is discussed below:
Public organisation: the public sector organisations are fully controlled by the government
authorities and all the decisions of these organisations are taken as the government norms (Van,
Phong and Loan, 2018). BBC is the public ltd. organisation with the objective to provide its
broadcasting services to the citizens which can help them in improving their living standards.
 Purpose: The purpose of this type of organisation is to provide their customers with the
best quality product and services at low price in order to enhance their living standards
and to gain the essential resources.

 Legal structure: The three legal structure under the public sector organisation are
discussed below:
Central government: The
State government:
Local government:
Private organisation:
 Purpose
 Legal structure
Sole proprietorship
Partnership
Cooperation
Voluntary organisation:
 Purpose
 Legal structure
Unincorporated organisations
Charitable trust
P2. The size and scope of the different types of organisation
BBC (British Broadcasting Corporation)
Background: The BBC is the national broadcaster of the United Kingdom and is headquartered
at London. The company is the statutory public corporation organisation founded on 18 October
1922 and is established under the Royal charter. The founder of BBC is HM government John
Reith and key products are Broadcasting and Wen Portals and key services are Television, Radio
and Online.
Mission and Vision: The vision of the BBC is to become the most creative organisation and
reach globally with its broadcasting service. The Mission is to act in the public interest and to
serve their customers impartially with high quality service that educate, inform and entertain
(Kodhelaj, and et. al., 2019).
Tesco Plc
Background: The Tesco Plc is the private sector multinational general merchandise and
supermarket chain headquartered at Welwyn Garden City, England, UK. The company was
founded in 1919 by Jack Cohen and currently has 7,005 shops at different locations. The