Business Environment: Types of Organizations, Legal Structures, Competition Policy, Fiscal and Monetary Policies, and Globalization

This report on business environment covers the different types of organizations in different sectors, legal structures, competition policy, fiscal and monetary policies, and globalization. It explains the advantages and disadvantages of sole proprietorship and general partnership, public and private ownership, and the objectives of fiscal and monetary policies. It also discusses the UK Competition policy and the legislative framework surrounding anticompetitive practices, and how the Competition and Markets Authority operates to review business practice and impact on the consumer.

Business environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Different types of organisations in different sectors..............................................................1
An explanation of the different legal structures including their advantages and disadvantages.
................................................................................................................................................2
Sole Proprietorship.................................................................................................................2
General Partnership................................................................................................................2
Limited liability company......................................................................................................3
The differences between public and private ownership including the different forms of
financing used for both...........................................................................................................3
An assessment of the UK Competition policy and the legislative framework surrounding
anticompetitive practices........................................................................................................4
How the Competition and Markets Authority operates to review business practice and impact
on the consumer......................................................................................................................4
Objectives of fiscal and monetary polices which the government can use to regulate the
economy.................................................................................................................................4
An understanding of globalisation and how it affects business, competition, and the economy.
................................................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Business environment is the collection of the internal and external factors that is always
changing and uncertain. It comprises of employees, customers, demand & supply, management,
suppliers, technology, competitors and so on. These are the factors which which can affect the
business of any company(Betti, and Sarens,2020). Therefore it helps in identifying the
opportunities and threat so that it can take the business to the growth. A business environment
analyse the strategies and actions of the competitors so that a firm can get the competitive
advantage. In this report, Marks and Spencer is taken into consideration, which is a UK based
public limited company headquartered in London. It involves in the business of selling food
products, clothing and home products. This report will cover various type of organization in
different sectors and pros and cons of different legal structures. Further, it will discuss the
difference between private and public ownership, and competition policy with anti-competitive
practices. Apart from this, it will states the objectives of fiscal and monetary policies in relation
to the business operations and importance of globalisation.
MAIN BODY
Different types of organisations in different sectors
There are different types of organisation in different sectors whose description is given
below:
Private sectors: These are the organisations which are owned by an individual and the
profit generated from this benefits to the owners, shareholders and investors. These firms are
financed by shareholders and banks loans(Razzaq, and et. al.,2018). There are various
organisation which are involved in the private sectors that includes individual business owner,
corporation or other non government agencies.
Public sectors: These are the organisations which involves many forms of business run
by the government which are described below: Departmental undertakings: It is also a form of public sectors enterprises that is run by a
government that functions under the control of one ministry or department of government
such as railways, post and telegraph, broadcasting, telephones etc.
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 Statutory corporations: It is a corporate body that are formed by a special act of a
parliament or the powers are decided by the government. It involves the organisation
such as bank of England, UK airlines and so on.
Third sectors: These are the firms which are owned and run by the trustees and not make
any profit for itself. These are made to help the community because they are operated with the
money from the donations and gifts and can be run as social enterprises.
An explanation of the different legal structures including their advantages and disadvantages.
There are different types of legal structures which are depicted as under:
Sole Proprietorship
This is a form of business where the owner is solely responsible for the profits and loss of
the business(Birinci, Berezina,and Cobanoglu, 2018). It is legal form of business entity but does
not create separate legal entity. Here are some advantage or disadvantages which are discussed as
under:
Advantages
Easy establishment: It is easy to establish because there is less investment a compared to
other businesses. There is little paperwork and no partner or executive to answer.
Few government regulations: Sole proprietorship has few legal requirement to follow
and does not need to spend time on regulations and not require any registration.
Disadvantages
Unlimited liability of the owner: The business owner has unlimited liability therefore he
has top pay all his debt from the personal income.
Limitation on capital raising: The owner is not permitted to raise funds from the
outsiders and not allowed to sell equity to stakeholders.
General Partnership
It is an agreement between the partners to run business together and legal formalities are
requires because there are more than one partners. All partners have unlimited liability and they
have to share profits and loss a per the stipulated conditions mentioned in agreement. There are
some advantages or disadvantage which are as under:
Advantages
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Easy to stablish: A general partnership is easy to establish because it is cheaper or simple
to create and have few legal requirement.
Easy to dissolve: A general partnership can be dissolve any time with mutual consent of
the partners.
Disadvantages
Unlimited liability: All the partner are personally liable to pay their debt and liabilities
and they are unprotected from the lawsuit against the business and their personal assets.
Liable for each other actions: when a partner execute an agreement without the
knowledge of other partners so they are also liable and have to honour the terms of the
agreement.
The differences between public and private ownership including the different forms of financing
used for both
Private: It represent the segment that is operated by individuals and for the profits in a
companies.
Public: These organisation do not seek profits and often provide services to the
government' citizen and are mainly operated by the government.
Public ownership Private ownership
A public company can sells its own registered
shares to the general public.
It can sell its own privately held shares to a few
willing investors.
The private and public have the same framework for developing the structures , although they
are several differences(Dumford, and Miller,2018). Private equity is offered using the same
concept as the public equity but private equity is available only to selected investors rather than
public market on stock exchange.
An assessment of the UK Competition policy and the legislative framework surrounding
anticompetitive practices
The competition policy is promoted to maintain the health competition in the industry and
encourages the business to create wider choice for the customers that helps in reducing prices
and improves quality. The firms try to make the products that are different from others and
deliver choices to the customers for better products. It helps in providing better competition
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among the European companies in order to protect the interest of the investors. The government
has made various policies to prevent the unfair business practices that are likely to reduce the
competition(Hjelmar and et. al.,2018). Therefore the government provides subsidies to the firms
for not operating its business only for the profit but also for the interest of the customers. The
government allow the business concerns to gain the advantage over the competition and provide
fair trade practices. The policies also prevent the organisation for abuse of dominant market
position so that the excess prices are not charge from the customers. It also help in preventing the
business entities to charge different prices fro different customers.
How the Competition and Markets Authority operates to review business practice and impact on
the consumer
The competition and market authority is the independent department of the UK
government which ensure fair competition in the industry. Its main objective is to protect the
interest of the customers and provide healthy competition by curbing anti-competitive practices.
The CMAs provide assurance hat the there is no merger between the organisations and they art
not getting reduced competitions. They are responsible for investing the whole market when they
find restrictive trade practices is operating in the market which may affect the interest of the
customers(Coyle 2018). They also take action against the businesses and the individuals that take
part in the process of cartelisation and abuse dominant market position. They work for the
interest of the customers and protect them from being charged higher prices. The government is
encouraged to prevent the unfair trade practices to ensure healthy competition in the market.
Objectives of fiscal and monetary polices which the government can use to regulate the economy
Fiscal policy
It is the use of government spendings and taxation to impact the economy of the country.
The government influence the economy by changing the level and types of the taxes with the
extension and composition of the spending and different form of borrowing. Its main objective
is to promote the economic stability and price stability in the market and provide full
employment to the unemployed persons of the country(Vogel, 2018) Further, it encourages the
proper allocation of the resources and accelerate the rate of development . Apart from this, it
encourage appropriate investment and capital formation or the successful growth of the business.
Monetary policy
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It refers to the use of monetary instrument that are under the control of the central bank to
regulate magnitude such interest rates, money supply and availability of credit to fulfil the
objectives of the economic policies. Its main objective is to maintain the stability of the prices in
UK so that they they can support to the employment. The financial policy committee works for
the financial stability and identify the risk or take actions against to reduce the risk(Chan, 2020).
There are other authorities which are responsible to to hold the sufficient financial resources and
have adequate risk control in place.
An understanding of globalisation and how it affects business, competition, and the economy.
A globalisation refers to the free movement of goods, services and people all around the
world in a seamless and unified manner. It provides various benefits to the countries which are
good at producing a particular products and easily export it to different countries in order to gain
profitability. Here are some features of globalisation which are depicted as under:
Liberalisation: This provides freedom to be an entrepreneur where any one can establish
business within their own country or abroad so that they can provide competition in the
industries(Coulibaly, Erbao and Mekongcho, 2018). The expansion of global market liberalizes
the economic activities of exchange of goods and funds across the world.
Free trade: It states the free flow of goods, services, technologies, ideas, belief and
cultures increase the global interaction that cause to international trade freely.
Increased collaboration: Globalisation has encouraged the process of collaboration
among the entrepreneurs with intend to rapid development, modernization and technological
advancement.
CONCLUSION
From the above discussion it has been concluded that organisation are divided into many
different sectors such private, public and third sectors where private is operated by an individual
or public is operated by the government authorities and third sector is operated by then trustees.
The report also stated different legal structures such sole proprietorship and general partnership
and their pros and cons. Apart from this it has explained the objectives of the fiscal and monetary
policies and the impact of globalisation on the competition and economy.
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REFERENCES
Books and Journals
Betti, N. and Sarens, G., 2020. Understanding the internal audit function in a digitalised business
environment. Journal of Accounting & Organizational Change.
Razzaq, and et. al.,2018. Knowledge management, organizational commitment and knowledge-
worker performance: The neglected role of knowledge management in the public
sector. Business process management journal.
Birinci, H., Berezina, K. and Cobanoglu, C., 2018. Comparing customer perceptions of hotel and
peer-to-peer accommodation advantages and disadvantages. International Journal of
Contemporary Hospitality Management.
Dumford, A.D. and Miller, A.L., 2018. Online learning in higher education: exploring
advantages and disadvantages for engagement. Journal of Computing in Higher
Education, 30(3), pp.452-465.
Hjelmar and et. al.,2018. Public/private ownership and quality of care: Evidence from Danish
nursing homes. Social Science & Medicine, 216, pp.41-49.
Coyle, D., 2018. Practical competition policy implications of digital platforms. Antitrust LJ, 82,
p.835.
Vogel, S.K., 2018. Marketcraft: How governments make markets work. Oxford University Press.
Chan, Y.T., 2020. Are macroeconomic policies better in curbing air pollution than environmental
policies? A DSGE approach with carbon-dependent fiscal and monetary policies. Energy
Policy, 141, p.111454.
Coulibaly, S.K., Erbao, C. and Mekongcho, T.M., 2018. Economic globalization,
entrepreneurship, and development. Technological Forecasting and Social Change, 127,
pp.271-280.
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