Business Environment

Business Environment
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INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explaining the Differences between types of organisations example profit, not for profit
and non governmental organisations......................................................................................1
P2 Differences between micro, small, and medium-sized enterprises (SMEs)......................3
P3 Critical analysis of the interrelationships of the different organisational functions and how
they link to organisational objectives and structure...............................................................4
TASK 3............................................................................................................................................5
P4 Macro environmental analysis (PESTLE framework) identifying the positive and negative
impacts upon business operations..........................................................................................5
TASK 4............................................................................................................................................8
P5 SWOT analysis of the organisation...................................................................................8
P6 Interrelation among strengths and weaknesses of company with macro factors............10
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................2
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INTRODUCTION
Business environment is a combination of internal and external factors which affects the
company and the operations in which it is dealing. The business environment includes number of
factors such as the suppliers of the organisation, clients of the company its competition, the
owners, laws and government, social and economic trends and many other internal and external
factors. Business environment is basically a surrounding of a company in which it is operating in
order to earn profits and sustain in the marketplace. This report is divided into two parts the first
part is an essay in which different types size and scope of organisations are described with the
help of respective examples of different organisations (Sarsby,2016). The three organisations
which are considered in this project is Sainsbury a private company which is profit based. Cancer
research is the second entity which is not for profit organisation and the third company is non-
governmental organisation known as equal rights trust. This essay also covers the
interrelationship between different functional units or departments of company. The second part
of the report is based on the case study of Sainsbury which is a second biggest supermarket chain
of the UK. The company was founded in 1869 by John James Sainsbury and have its
headquarters in London, UK. This part of the report holds the information about micro and
macro factors which are affecting operations of Sainsbury and a present in the surroundings of
the organisation either internal or external.
TASK 1
P1 Explaining the Differences between types of organisations example profit, not for profit and
non governmental organisations.
Organisations are of different types and kinds some are operating for earning profits, few
organisations are are rendering their services to the people with the motive of satisfying their
needs rather than earning profits and few organisations are non governmental which are NGOs
and charitable trusts. The organisations are of three types profitable, not for profit and non
governmental. These three organisations are compared in section below.
Profit organisation
A profitable organisation is that which enters the market in order to business and increase the
sales for higher and higher level of profits. The profit organisation enters the market with the
motive of earning enough to sustain in the market and in the long run it aims towards expanding
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growing and increasing their capital levels so that more and more profits can be earned by it.
Sainsbury is the example of a profitable organisation. It is a UK best entity which is a
supermarket chain sending goods and services to the higher and middle class people of the
society as its pricing policy is according to the segment of the population. The main aim and
motive of such kind of organisation is to increase the sales or revenue on regular basis by
increasing the customer share and market share by rendering best products and services to the
people of economy by which we can earn higher profit. The main source of earning of such
organisation like Sainsbury is by making sales of its goods and services or offerings which helps
in improving the revenue standards and ultimately enables them to attend their predetermined
objectives and goals (Preuss, 2017).
Not for profit organisation
The second type or form of organisation is is not for profit companies. These types of companies
are present in the marketplace with the motive of providing their products and services to the
needy and to the people who are not able to fulfilling their needs on their own. The not for profit
organisations a developed with the motive of rendering best possible and best quality services to
the people who are in need of those services and products. Example of not for profit organisation
which is present in UK is Cancer research. It is organisation which is established for the the
individual suffering from cancer of any type. The business is for bringing them all the resources
which are not affordable by them and helping them to move on with the pain and sufferings.
Main objective of not for profit organisation is entirely serve to the people for whom it is
developed and established. Which type of organisation make available all different types of
goods and services or resources which are required by the people and for which individuals are
in need for. The main source of revenue for this kind of organisation is through donations
charities member subscriptions etc.
Non-governmental
The third form of organisation is non governmental, where entities do not depend on any
governmental policies finances and resources. Non-governmental organisations are self
dependent and works with their own resources and personal connections. Equal rights trust is a
non governmental organisation which is established in UK. the non governmental organisations
are also known as voluntary organisation as these kind of businesses are open by the will and
good intentions of people who has huge amount of money by which the wishes to do welfare
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