Businesses and Business Environment.

Businesses and
Business Environment

Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain different types of organisation: public, private and voluntary sectors and their
purposes.......................................................................................................................................3
P2 Explain the size and scope of a range of different types of organisations..............................5
TASK 2............................................................................................................................................7
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure........................................................................................7
TASK 3............................................................................................................................................9
P4 Identify the positive and negative impacts of macro environment on business operations....9
TASK 4..........................................................................................................................................10
P5 Analyse the internal and external environment of the organisation using SWOT analysis. 10
P6 Explain how strengths and weaknesses interrelated with external macro factors. ..............12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business is defined as the organisation that is engaged in the commercial, industrial or
professional activity or this term also refers to the all operational activities that is engaged in the
production of goods (Athique, 2017). Earning a profitability of the company is affected by the
operational activities of the organisation. These activities lead to a development of good
customer relationship. Through the various internal and external factor these operational
activities are affected and the factors include suppliers, competitors and the management. The
role of analyst is selected in this report and this includes to analyse as well as understand types of
business environment. Ford, Crown prosecution service and shelter which are example of
private, public and charity business is selected for this report. Moreover, this report highlights on
size, scope, structure and legal aspects of the organisation. PESTLE and SWOT perspective will
also be included in this report to understand positive and negative impacts of human.
TASK 1
P1 Explain different types of organisation: public, private and voluntary sectors and their
purposes.
Organisations are defined as the group of people working together for the achievement of
common goal. These are generally of two types one is profit oriented organisation, which is
concern with the motive of profit maximization and another is non-profit organisation, which
aims is to serve the society. Various types of organisation are as follows:
Public sector organisation: These are the organisation, which is owned by the
government and provide services to the citizens. The main objective of organisation is to do the
welfare of the society. Profitability is the second concern for the company. Crown prosecution
service is an example of public sector organisation (Deasy and et al., 2016).
Purpose: The main purpose of public sector organisation is to benefit the society with the
associated goods and services of the company.
Legal structure:
 Central government: These business organisation is controlled by the government and
all the functionality is managed by the central government. This is responsible for
acquiring of funds and allocate these funds in the growth of the organisation.

 State government: this structure permits the organisation to reach within the state only
and controlled by central government.
 Local government: These type of organisation is executed by the local communities like
municipal corporation.
Private sector organisation: These are organisation which is owned and controlled by
the group of people or by individual having the goal of profit maximization. There is no as such
regulation of the government. Ford is selected as a private organisation and it is a well-known
automotive business in the world (Eisend, Evanschitzky and Gilliland, 2016).
Purpose: The purpose of the organisation is to earn profit with fuller utilization of their
resources and skilled workforce.
Legal structure:
 Sole proprietorship- The type of business that is owned and functioned by the single
authority with the motive of profitability.
 Partnership- The business is established by the mutual collaboration of two or more
partner in order to run the organisation with a bounded agreement.
 Limited company- The company which have limited liability for their shareholders. All
the UK companies are bound to follow the company act in order to smooth running of
organisation.
Voluntary organisation: This the organisation which is formed by the group of people with
common aim and purpose. Shelter is a registered charity organisation and it offer the service that
is related with bad housing through identifying root cause of bad housing and than change them
with engaging local authorities for improving housing about organisation (Evans and et al.,
2017).
Purpose: The main purpose of this organisation is to benefits the society and solving the social
issues. They are not profit oriented organisation.
Legal structure:
 Trust- This is the traditional approach of the people to do charity and providing
maximum support to the society.
 Unincorporated Association- These organisation is managed by the group of people but
not to use the structure that is followed by the companies.
Organisation classification on the basis of size: