Business and Business Environment

Business and Business Environment
INTRODUCTION
Business environment refers to the sum of all the things which are external to firms and industries that
affect their operation and organisation. It basically encompasses the climate, social, economic, institutional or
political in which operations business are conducted. In the present report, there are different kinds of organisation is
taken into consideration which include public, private and voluntary sectors as well. The present report will cover
discussion about different types and purposes of organisation with the legal structures and also about the scope and
size of the range of different types of organisation. In addition to this, the report will cover analysis about the
relationship between different organisational functions and also about the link between organisational objectives and
structure as well. Moreover, the report will cover discussion about the positive and negative impacts the macro
environment has on the business operations. The report also consist of internal and external analysis of particular
organisation for identifying the strengths and weaknesses and also about the interrelationship between external macro
factors, weaknesses and strengths as well.
P1 Describe about the different types and purposes of public, voluntary and private sectors and legal structures
Organisation refers to the group of people who work together such as the company, institution or the
association which comprises of one or more people and also have particular purpose. There are different kinds of
organisation which are defined into the following manner:
Private Sector: These are the organisation which has been owned by the individuals and are basically
driven by the profit. The main purpose of private sector organisation has the goal of making money and also employs
more number of workers than the public sector. The main example of private sector organisation is Cadbury and also
it is based on the corporation business structure. The most common types of organisational structure of private sector
basically include the sole proprietors, limited liability companies, partnerships, sole proprietorship and corporations
as well.
Public sector: These are the organisation which has been owned by the government and also provide the
goods and services for the benefit of the community. The main purpose of public sector organisation is to provide
those services which are considered into essential terms for the well-being of the society. The example of public
sector organisation is the Astra Zeneca. The structure of public sector basically comprises of the federal, state and
local governments where the government organisation act as the separate legal entity.
Voluntary sector: These are the organisation which act as the non-profit parameter, non-statutory and run
by those individuals who do not get paid for running the organisation into positive terms.The main purpose of
voluntary organisation is that it basically comprise of giving the concrete expression to the fundamental right of
freedom of association which identifies the requirements of individuals. The main example of voluntary sector
organisation is the Oxfam. The main structure of voluntary sector basically include the charity and trust as well.
P2 Describe about the scope and size of the range of different kinds of organisations
There are different scope and size of the range of different kinds of organisation which are defined
into the following manner: Business are majorly classified as the micro, small and medium enterprises. These are
defined into the following manner:
 Micro enterprises: It refers to the small businesses which employs small number of people and also
operates with fewer than ten people. It can be started with small amount of capital which is advanced
from the other organisation. In a small micro enterprise the number of employees which has been
employed is fewer than 250 people. They are further divided into micro enterprises, small enterprises
and medium sized enterprises. The scope of micro enterprises is about covering the wide different kind
of activities which starts from the retailing to manufacturing.
 Small enterprises: It refers to the distinct and separate business entity which together with its branches
or subsidiaries. There are certain particular areas of economic activity that can be effectively and
managed into successful terms through forming the small business enterprises. The size of small
enterprises are of those kind which are effectively larger as compared to micro enterprises and also
they perform functions of business into the particular region. This is the kind of business which
include very few number of employees.
 Large enterprises: It is that kind of enterprise which has at least five thousand number of employees
and also have the turnover which is greater than the 1.5 million euros. These are the organisation is to
enhance the business activities for accomplishing the set objectives. These are those organisation
whose focus on this parameter that they can gain the competitive advantage over the other rival
companies. Large enterprises perform their activities on the larger scale in the overall world.
Their main focus is towards earning profits on a larger scale. In context to Cadbury company which is a very
large organisation so it has the presence on the global level due to which it becomes easier to earn revenue and
profits on a larger scale.
In this manner, the scope and size of different kinds of organisation are defined due to which it gives an idea that
how the organisations have to work into result oriented form with the right kind of approach.
M1 Evaluate how the size, structure and scope of dissimilar organisation link to the business business objectives
and product and services offered by the organisation
Within the business environment, there are different kinds of organisation who have different kind of
structure, size and scope. There are mainly three types of organisation which include public, private and voluntary
as well. There are different kinds of organisation which include the small, medium and large enterprises as well.
According to the size and scope of the organisation, every company has their own different objectives. .Every
organisation also provide different kinds of products and services according to their requirement and customer
preferences as well so they accordingly take the decision at the organisational level. So there is a kind of positive
relationship between the size, scope and the objectives of the organisation as well. That's why it is very important
to understand the organisational scope and structure so that the objectives of the organisation can be achieved into
the positive term.