Business Environment

This presentation provides an overview of the business environment, including different types and purposes of organizations, their legal structures, and the size and scope of organizations. It also discusses the market structure and its effects on pricing and competition.

Business Environment

What is Business Environment
The aggregate of all conditions, influence and events which surround and
affect it in the other way it can be analyzed as this is the environment
which influence direct or indirect to any business.

Introduction
This report is about the business environment of
the United Kingdom and global effects that affect
the economy of UK. Business environment is the
set of conditions that are uncontrollable and
affects the functions of the organization in many
levels. Here it can be identified that there are
many organization small, medium and large scale
or may be (public, private and voluntary sectors)
and which purpose is proper or how we can
identify the scope of each organization also.

Identification
Different types and
purposes of organisations
(public, private and
voluntary sectors) and
obviously we will criticize
their legal structures
Analysing how the
structure, size and
scope of those types
of organisations link
to the business
objectives and how
they fulfil
Clarifying the size
and scope of those
different types of
organisations

Different types and purposes of organisations
[P1]
• Business organizations: To make a profit in a socially standard way.
For example: Airlines, Fast food.
• Non-profit service organizations: They want to help to all of people
without any profit.
For example: NHS, Universities.
• Commonweal organizations: They provide service to all members of a
given population.
For example: Fire Service, Police.

Example of Private, Public and Franchisee
based
• Virgin Group LTD is a private limited company established in 1970 in UK
• Tesco PLC is a public limited company established in United Kingdom.
Though the organization was at first established as the sole proprietorship
company but it has been public limited company
• MC Donald’s is the world’s largest fast food company that is considered
under the franchising organization.

Clarifying the size and scope of those
organisations [P2]
• Large scale: To access the large-scale data sources efficiently and
automatically, it is necessary to classify these data sources into different
domains and categories.
• Medium scale: The demands on an intensely-managed landscape need a
regional landscape planning system, which balances the social economic
needs with geo-biological conditions.
• Small scale: Title for firms of a certain size which fall below certain criteria
in terms of annual income, number of employees, total value of assets.

Analysing how the structure, size and scope of
those types of organisations
LLC stands for Limited Liability
Company. When looking at
business types, many business
owners choose to form a limited
liability company (LLC). Creating an
LLC is a good way to "wall off" your
personal assets from your
company's liabilities, offering
protection for your personal assets
in the event of a judgment against
your business. For this reason,
forming an LLC is a better fit for
many owners than a sole
proprietorship or a general
partnership.
A limited liability company (LLC)
also has certain tax advantages.
The business itself is not
responsible for taxes on its profits.
Instead, the LLC's owners, known
as "members," report their share of
business profit and loss on their
personal tax returns, similar to tax
reporting for a general partnership.
This is known as "pass-through"
taxation.

Legal environment
Companies Act
1956
Foreign exchange
management Act
1999
Consumer
protection Act
1986
Right to
information Act
2005

Market structure
• Monopoly market structure: when there are one or two company
operating in the market is called the monopoly. In this market structure
company normally impose the price what they really wants to maximize
the profit and does not care about what the customers are willing to pay
for the products. Here, in the monopoly market, Profit maximization will
be achieved by setting price so that MC=MR and One cannot choose both
P and Q. on the other hand, Like any firm, the monopolist is constrained
by their demand curve.
• Oligopoly market structure: In an oligopoly market the company normally
considers the top level competitors pricing system and considers the
customers demand. In the oligopoly market, the company set prices low
as signal to possible entrants or other competitors. This is to shown the
willingness and ability to defend the market share

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