Business and Business Environment Unit 01

BUSINESS AND
BUSINESS
ENVIRONMENT UNIT
01

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Explaining different type and purpose of organization; public, private and voluntary sector
and legal structures:....................................................................................................................1
P2 Explaining the size and scope of a range of different type of organization:..........................3
M1 Analysing how the structure, size and scope of different organization link to the business
objectives and products and service offered by the business organization:...............................5
P3 Explaining the relationship between different organizational functions and how they are
link to organizational objectives and structure:..........................................................................5
M2 Analysing the interrelationship between organisational function and the impact that can
have upon organisation's structure:.............................................................................................7
P4 PESTLE ANALYSATION FOR UNILEVER COMPANY:................................................7
Positive and negative impacts of globalization, competition and Brexit on Unilever................9
P5 Internal and external analysis of Unilever in order to evaluate strengths and weaknesses.. .9
P6 Inter-relationship of strengths and weaknesses with external macro factors.......................14
M4 The ways in which SWOT and TOWS evaluation influence decision-making.................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business is a combination of various activities which involves occupation, commercial services
or trade activities which involves exchange of goods and services to increase the profits. These
profits can be achieved in any form such as money as well as exchange of any entity. the
business organizations are involved in number of different activities in which the organisations
deal with producing and manufacturing of goods. There are different types of business
depending upon the demands and the resources available for use (Brogaard, 2019). The
manufacturing business deals with manufacturing of various products such as plastics products,
steel manufacturing plants and fabric manufacturer. These business types produce and sell
products either directly to the sellers or to the middleman who sales it further.
In merchandising business type, the organization buys goods and products from other
producers and then sell it in the market at retail price. In hybrid business type the organization
performs two processes simultaneously. The service business type deals in providing the
services of products to the customers. The Unilever is a multinational company which deals in
consumer goods such food products, beauty creams, vitamins and other nutritional supplements.
Stores of the Unilever company are situated in 190 countries (Chow, 2018). The report will
illustrate the different types, scope and size of the organization along with comparing the
interrelation of various functions. It will also highlight the negative and positive impacts of
macro factors along with determining the internal weakness and strength in relation to macro
factors.
MAIN BODY
P1 Explaining different type and purpose of organization; public, private and voluntary sector
and legal structures:
Business organization is wide term, there are different type of business structure that
allow company to become stable in the market. Every business fall under on type which means
either they will be public, private or social organization, under UK Company Law, entrepreneur
need to clear whether their company is public or private. There are different type of business
structure, these are:
Public limited company (plc): public limited company is one of the most common type of
business structure, a PLC is public company that have wide range of product and tend to rule
1

over industry. Public company is open for public and welcome customer from local market,
large scale Plc are listed on stock exchange where consumer can buy share of those companies.
Unilever is public limited company who have wide range of product, this company is one of the
largest retail giant who tend to rule over the industry (DuFour and Reeves, 2016). This Plc is
listed on London stock exchange and have great market share. To form a public limited
company, there is legal process, at first minimum of two directors needed to form a company
and their power will be equal. Under HMRC (Her Majesty' Revenue Customs), representative
have to list their income tax form to this department and need approval to start plc in market of
the UK.
Private company: private company are been run by sole trade who enjoy profit alone and take
risk alone, these type of business structure are most common where business person start their
company will small amount of funds. Private company also have ability to rule over market, it is
very clear that there are certain private company who have achieved great success and are listed
on stock exchange (Hope and Vyas, 2017). UK have successful private companies, for example;
Pentland Group is one of the most successful private retail and whole sale company that tend to
rule over retail market. This company have great market share are capture large area of retail
sector. To form legal private company in the UK, sole trader do not mainly have to perform any
legal process. They need to provide self-employed certificate and need to register their ID to
HMRC (Her Majesty' Revenue Customs) to clear income tax and other forms of tax. In the UK,
company need to be legally separate from owner which means private company will be separate
legal entity.
Voluntary organization: voluntary organization is one of the most common but most important
that provide non-profit service to general public, this type of company perform business only to
serve nation and its people. This type of business do not have greater market share, but they tend
to fulfil demand of the public, British Heart Foundation is one of the most popular voluntary
organization that provide voluntary service to public (Schwabenland, 2016). To form such
voluntary organization in the UK, non profit organization need to list their subject on NCVO
(National Council for Voluntary Organization) and approve them to run such non profit
organization. There are certain other certificate which they need to get from the government and
from the National Health Service to start non-profit organization.
2