Business and Business Environment

BUSINESS AND
BUSINESS
ENVIRONMENT
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Types and purpose of organizations; public, private and voluntary sector and legal
structures......................................................................................................................................3
P2 Size and scope of a range of different types of organizations................................................4
M1 How structure, size and scope of different organizations link to the business objectives and
product and services offered by organization..............................................................................6
TASK 2............................................................................................................................................6
TASK 3............................................................................................................................................8
P4 Positive and negative impacts the macro environment has upon business operations...........8
M3 PESTLE model to support a detailed analysis of the macro environment............................9
TASK 4............................................................................................................................................9
P5 Internal and external analysis of specific organisation in order to identify strengths and
weaknesses...................................................................................................................................9
P6 How strength and weakness interrelate with external macro factors...................................10
M4 SWOT/TOWS analysis and justify how they influence decision making..........................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Business environment, is considered to be the amalgamation of both external and internal
factors like employees, customers, management, suppliers, distributors, economic changes,
market trends etc., Therefore, business environment provides with a chance to identify the
business opportunities through which positive outcomes can be gained (Apăvăloaie, 2014). This
report will provide with an overview of the business environment of three sectors i.e. public,
private and NGOs i.e. British Army, John Lewis Partnership and Amnesty International
respectively. Purpose of operating their businesses, factors that makes them different. Moreover,
relationship between various functions of organisation and how they are linked with
departments. SWOT and PESTLE will provide with an insight of external and internal factors
that are important for business operations.
TASK 1
P1 Types and purpose of organizations; public, private and voluntary sector and legal structures
In this global world, there are many companies those who run their business with a
purpose and it can differ from businesses to businesses such as private companies for earning
profits, public for the welfare of the society like providing medical facilities and NGOs with a
purpose of providing service without any expected return.
Definition of business organisation
A business organisation, is considered to be an entity that provides good and services to
customers and in return they earn benefits or profits. However, they perform all their activities
under a formal structure focussing on achieving the aims and objectives. Moreover, companies
like John Lewis Partnership can be classified under this because their purpose is to gain
maximum profits from the market area.
Difference between the profits, non-profit and non-governmental organisation
Profit based business – their
main motive is to make
money. In order to this, they
provide with the services that
are needed by the customers.
For example: a product is
The non-profit organisation
– Companies under this
although earn profits but they
do not divide their funds with
their shareholders and instead
the profits are used the social
The NGOs – Organizations
working under this are not a
part of government but works
for the civil society. Most of
its funds are raise by the
government. For example:
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provided in an exchange of
paying a certain amount of
money.
welfare. For example:
Unilever, using its extra funds
for providing education to
under privileged people.
Amnesty International works
with the motive of protecting
human rights of people.
Public Sector organisation: They are determined as a sector which comprises
organisation that are operated and some part of shares are owned by the government and
moreover, works for providing benefits to the citizens. For example: British Army, who perform
their duty to protect the citizens of the nation from outside attacks.
Purpose and legal structure: Although, looking at the purpose of public sector
organisation, they do not work for earning money but rather do their duty of maintaining a
balance between different activities so that country can develop. Their legal structure is
according to the legislations and all the activities gets approved by government authorities.
Private Sector organisation: Companies under this plays a major role in improving the
economy of the nation which means run their business with the intention of making profits
(Armstrong and et. al., 2015). For example: John Lewis Partnership, a departmental store from
where customers can purchase their products by giving a certain amount of a certain amount of
money.
Purpose and legal structure: Businesses running under this sector works with a purpose
of earing monetary profits and to expand its business across the globe. In relation to legal
structure John Lewis Partnership is a public limited company.
Voluntary Sector organisation: The main motive is to create social impact instead of
earning profits. They work on an issue which needs to be solved. For example: Amnesty
International, work for protecting the human rights of people.
Purpose and legal structure: Works with the purpose of providing welfare to the society.
Moreover, they take permission from the regulatory bodies so that better application of resources
can be done.
P2 Size and scope of a range of different types of organizations
Scope of micro, small and medium and large-sized business:
Microbusiness- These
are determined as
Small business- They
independently own
The medium-sized
businesses-
Large Business-
They are the real
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