Business & the Business Environment

BUSINESS & THE
BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 AND M1.....................................................................................................................................3
Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures......................................................................................................................3
P2.....................................................................................................................................................4
Difference between large, medium and small organizations......................................................4
P3.....................................................................................................................................................6
Examining the different business functions of organisations and how they are interlinked with
their impact on structure.............................................................................................................6
P4 AND M3.....................................................................................................................................8
Explaining the positive and negative impacts the macro environment has upon business
operations along with Pestle-analysis.........................................................................................8
P6 and M4......................................................................................................................................11
Conducting the SWOT analysis of Mark and Spencer.............................................................11
Analysing how strengths and weakness are interrelated with external factors of Mark and
Spencer......................................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment is termed as internal and external forces that affects the operations of
business. It includes competitors, legal, government and technological factors. The chosen firm
of the report is Mark and Spencer which was established in 1884. It is the multinational British
company operating in retail sectors that deals clothing, food and home products. The report will
include the types, size, scope different organizations. Further it will present the interrelationship
of the various functions within an organisation and how they link to organisational structure.
Along with this it will also evaluate the positive and negative impact the macro environment has
on business operations. Lastly it will reflect the internal strengths and weaknesses of specific
businesses and their interrelationships with external macro factors.
MAIN BODY
P1 AND M1
Explain different types and purposes of organisations; public, private and voluntary sectors and
legal structures
Public sector: It is the type of sector that is set up with the primary purpose that is of generating
profits. They are owned by individuals and group of entities. These sectors are subjected to
financial and legal frameworks that are set out by the state authorities. Mark and Spencer is the
public sector of UK(Remišová, Lašáková and Bohinská 2019).
Private sector: It is the type of company which owned and managed by its members only. For
example Pentland group is the private sector of UK
Voluntary sector: It refers to the business that goal is to provide social service not earning
profit. They are also known as civil society, third and not-for-profit sector. Such instance like
British heart foundation

Legal structure: It is also known as the business ownership structure and business form it
include different structures that are also based upon the private, public and voluntary structure:
 LLCs: It is the type of the structure that is hybrid between different types of the
corporation, sole proprietorship and partnership. In this public sector organisation are
also there.
 Partnership: It is known as the association that arise between two or more people with an
aim to earn profit.
 Sole proprietorship: It is known as the type of the structure that is owned and run by the
single individuals.
 Corporations: It is known as the complex business structure which is termed as the legal
entity which is separate and independent from the people who run the business known as
shareholders.
P2
Difference between large, medium and small organizations
Basis Small enterprise Medium enterprise Large enterprise
Meaning These are the privately
owned business like sole
proprietorship that have
less revenue and are small
business.
It is the type of
enterprises which
include partnership,
private company that
have less than 250
employees.
Business which are
operated on large scale
are known as large
enterprises
Objectives The main objective of
small enterprise is to
provide their customers
excellent customers
services
The main objective of
medium enterprise is to
achieve the aim of the
company(Tajeddini,
Martin and Ali, 2020).
The objective of large
enterprise is to make
as much sale as
possible that also give
benefit to the
economics of scale.
Goods and
services
Machinery tools,
equipments and
Machines, mining,