Unit 1 - Business and Business Environment

Unit 1 - Business and
Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK 1............................................................................................................................................5
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures......................................................................................................................5
P2 Explain the size and scope of a range of different types of organisations.............................7
M1 Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation................................................9
TASK 2............................................................................................................................................9
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................9
M2 Analyse the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have upon organisational structure......................................11
D1 Provide a critical analysis of the complexities of different types of business structures and
the interrelationships of the different organisational functions.................................................11
TASK 3..........................................................................................................................................11
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples. / M3 Apply appropriately the PESTLE model to
support a detailed analysis of the macro environment within an organisation.........................11
TASK 4..........................................................................................................................................14
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses..........................................................................................................14
M4 Apply appropriately SWOT/TOWS analysis and justify how they influence decision-
making.......................................................................................................................................15
P6 Explain how strengths and weaknesses interrelate with external macro factors. / D2
Critically evaluate the impacts that both macro and micro factors have upon business
objectives and decision-making................................................................................................15
CONCLUSION .............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Business and business environment are the two correspondent components which works
hand in hand. Through several businesses and industries business environment is developed and
the surroundings of a company are the environmental factor associated with the development and
number of influences present. Hence, business environment is defined as a mixture of internal
and external factors that are surrounded around the organisations operations and work
environments (Gaganis, Pasiouras and Voulgari, 2019). There are several parties and elements
which affect and influence a business that categorised as internal such as employees and external
for example customers. These elements surrounding an organisation have significant impact on
company's decision-making and work practices. Therefore, the importance of studying the
business environment of a firm in respective industry is must.
The present report is carried on with discussion on such business environmental factors.
The size, scope and nature of three types of organisations that are Private, Public and Voluntary
are discussed. Moving along, an example company is chosen for carrying the whole report that is
Bearing Point where interrelationships between functional units of organisation are showcased.
Then moving further, SWOT analysis is performed for seeking an understanding about internal
environmental factors and PESTLE analysis is developed for seeking knowledge about external
environmental factors. Lastly, in the report an inter-relationship in between the internal and
external factors are described with reference to internal strengths and weaknesses and PEST
(Political, Economic, Social and Technological).
The project is constructed on Bearing Point which is one of the largest multinational
management and technology consulting firm, established in 1997 as a business unit of KPMG.
Bearing Point is headquartered in Amsterdam, Netherlands and operates in 23 countries with
4600 employees around the globe. Bearing Point deals in management consultancy, business
services and Software solutions..

TASK 1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.
Business organisation has three major types in which they are placed and differentiated
accordingly. These three types are Public, Private and Voluntary, which are unique and
separate from one another. These business organisations differ themselves through range of
service and products they offer to people and their potential customer. As well the legal
structures of the organisations are different from one another and place them in separate sections.
All the three types of organisations, their purpose and their legal structures elaborated underneath
in the section.
PUBLIC ORGANISATION: Definition- The public sector organisation are those who are responsible and accountable
to public and external stakeholders that are general public. The public sector
organisations are controlled and regulated by government having full power on decision
making and processing of the business. The public sector organisations can trade their
shares in public for which they pay dividends to shareholders and mostly use the funds
raised as capital for running the business operations. For example. Tesco Plc a public
company dealing in retail sector offering consumable goods to customer in the lowest
cost possible. The company is present in several geographical locations and offers their
offerings to worldwide customers (Eling and Schaper, 2017). Purpose- The key purpose and aim of a public sector organisation is clear and
concentrated on earning profits and running their operations for the supporting the
welfare and development of society and general public. The purpose of Tesco Plc is to
keep serving customers and providing them the daily required goods in minimal cost
possible in the whole industry amongst all competitors and also to facilitate their smallest
needs possible.
 Legal Structure- The legal structure of a public company is involves the contribution of
all shareholders and third parties. The public companies are separate legal entities and
their decision making is dependent upon the laws and regulations of government and
implications of shareholders votes and power. Hence, the legal structure of Tesco Plc is