Business and Business Environment: Types and Purposes of Organizations, Organizational Functions, and Macro Environment Impacts on Business Operations

BUSINESS AND BUSINESS
ENVIRONMENT

Table of content
INTRODUCTION...........................................................................................................................2
Task 1...............................................................................................................................................2
covered in PPT.......................................................................................................................2
Task 2...............................................................................................................................................5
P4 Identify the positive and negative impacts the macro environment has on business operations, supported by specific examples.
................................................................................................................................................5
P5 Conduct internal and external analysis of specific organisations in order to identify strengths and weaknesses. 6
P6 Explain how strengths and weaknesses interrelate with external macro factors...............7
CONCLUSION................................................................................................................................9
References:.....................................................................................................................................10
1

INTRODUCTION
Business environment is defined as aspects associated with surroundings of business enterprise that affects and influences its
operations as well as effectiveness. This is known as aggregate of all events and conditions that affects business operations. This
encompasses of different factors which affects operations of company as well as its customers, stakeholders, competitors, regulations
and other governmental activities. business environment is dynamic and that is why companies have to improve technical as well as
operational capabilities on regular basis. This is important for organisations to analyse internal as well as external environment before
running operations within market. The companies considered in this report is JD sports fashion which is a British sports fashion retail
company based in England, UK. It was founded in 1981 by Peter Cowgill dealing in clothing and sports wear Accessories. This report
will provide explanation about scope, size, legal structure, purpose, types, vision and other factors of private, public and voluntary
sector. Moreover, there is also discussion about external analysis such as PESTEL and SWOT.
Task 1
covered in PPT
2

3
Business and Business Environment
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.
Within a business environment, there are three types of organisations - private, public and
voluntary sectors. The explanation about company’s scope, size, mission and vision are mentioned
below -
Private sector organisations
Private sector is known as organisation that is owned by individuals and not governmental
bodies. These organisations operate within market for increasing profit and sales. one of the examples of
private sector organisation is JD Sports (Aula, P. and Mantere, S., 2020).
 Background details of organisation- JD Sports was founded by Jack Cohen in the year 1919.
This is a private sector organisation which conducts operations in retail sector internationally.
JD Sports provides services to people through supermarkets, super stores, hypermarket and
convenience shop.
 Products and Service- This company is offering products and services like daily utility
products, groceries, bank, magazine, clothing, etc.
 Vision- The vision of this company is to increase value of products and services and provide
high quality products to consumers. They also want to increase customer loyalty and enhance
number of potential customers.
 Mission- To mission is to develop value for customers in order to earn lifetime loyalty from
potential customers.
 Types-
Sole Proprietorship: It refers to the organisations that are run by individuals for earning
profits. It is known as oldest form of private sector organisation and there are very less restrictions while
running these organisations. The example of sole proprietorship includes Carpenter, Local Grocery store,
Tailor, etc.
 Partnership- This is known as agreement that exists between two or more individuals for
running a private business. In context of partnership business, profit and loss has to be beard
by both the partners. Generally, the agreement depends upon shares, authorised capital,
ownership and profits.
 Joint Stock Companies There are limited financial resources in joint stock companies. This
consist of heavy load of risk for owners. There are different values for companies which are
operating in joint stock. Board of Director, CEO, Shareholders are main operating partners of
joint stock companies.
 Purpose- The main purpose of JD Sports is to become one of the biggest retailing
organisations across the world. This provides high quality products and services to customers
(Bouranta, N. and Psomas, E., 2017).
 Legal Structure- Corporate governance is the legal structure used in JD Sports. This company
uses the strategy which helps to satisfy demands of all stakeholders.
Public sector organisations
Public sector organisations are those which are ruled by governmental authorities. These are an
essential part of economy. These include industry of public sector consisting of school, electricity,
 Background details of organisation- NHS is a public sector organisation of UK that
provides health care facilities to people at low charge. There are four operating systems of
NHS including NHS England, NHS Wales, Health and Social Care in Northern Ireland and
NHS Scotland. This organisation was founded in the year 1948 by Aneurin Bevan
 Products and Service- It provides medical facility to people and ensure that individuals are
given effective treatment.
 Vision- To enhance medical help and promote health, care and value for individuals.
 Mission- To provide good health services to people in need and make them happy.
 Types-
Departmental Undertakings- This is an old public organisation type which is governed by
government. It provides essential services like railways, telephone service, broadcasting, etc.
Public Corporation/ Statutory Corporation- These types of organisations are the ones which are
operated by parliaments, state or central government. The best example of these are Airlines, State
back, etc.
Government Company- In this type of organisation, 50% capital is associated with state or
central governance. Moreover, in context of these companies it is seen that government provide
effective rules and regulations to run these (Ferreira, J.J.M and et.al., 2017).
 Purpose- The purpose of NHS is to create enthusiasm among people for promoting health
and care. This includes creating good facility for people in context of medical need.
 Legal Structure- The legal structure of NHS is public corporate. NHS is operating for
improvising medical health and care.
Voluntary sector organisations
This is type of organisation which runs for only social work. the main objective of such type of
organisation is to enhance society’s condition. These are generally non-governmental or non-profitable
companies. Such organisations take funds from national lottery, government, rich individuals, etc.
Oxfam organisation is an example of voluntary organisation.
 Background details of organisation- Oxfam is an organisation which was founded by Cecil
Jackson Cole in year 1942. This company is situated in Nairobi, Kenya. The services offered
by this organisation are mainly for poor people. This organisation wants to remove poverty
from surroundings.
 Products and Service-. This company initiates campaigns for removing poverty among
people. It provides nutritional food, shelter, clothes to those who needs it.
 Vision- To abolish poverty from the world by helping poor and providing them means of
income.
 Mission- Mission of respective company is to develop effective solution for injuries, disease
and poverty so that they can change the world and make it effective (Iqbal, Z. and Malik, M.,
2019).
 Types-
Unincorporated Association- It is considered as business unit which is developed by