The Business Environment

This presentation provides an overview of the business environment, including the types and purposes of organisations. It also discusses the size and scope of organisations in different sectors. References are included for further reading.

The Business Environment
Task 1

Content
 Introduction
 Organisation's types and its purpose
 Size and scope of organisation.
 References

Introduction
Business environment is a surrounding of all those circumstances where an organisation performs its
activities and functions.
 “Business” is an activity that is been done by human being, which include several operations such
as buying and selling, manufacturing and others.
 “Environment” is a set or group of various things that are related to to economy, politics, legal,
social, and cultural factor.

P1) Organisation's types and its purpose.
Different types of organisations that are present in market to perform different activities.
They all are having their own values, views and purpose.
Some firms are focusing for earning maximum profit for its survival whereas there are
many who are working as for welfare of public.
Types of Organisation:-
 Public sector
 Private sector
 Voluntary sector

Public Sector
Public sector are those organisation where government has authority to govern all
activities and functions of a business.
For instance- McDonald is an American organisation which lies under this sector. This
is a very recognised organisation in whole world as it is availing its products and services
in most effective manner.
Purpose
 McDonald's purpose is to serve its customers in right and good manner.
 Quality is most concern of them.
 Satisfying customers with their hardship and efforts.

Private sector
This type of organisation is not under control of government. Products and services to
customers are provided by individual person who is whole sole responsible for carrying
out each and every aspect of this.
For example- Virgin group is a investment company which is leading in a global
market and does not involve government authority.
Purpose
• Its main objective and purpose to establishment is to serve customers appropriately
so that they can be able to get maximum profit out of them.
• It also want expand its business at those area where it haven't yet tapped.

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Sole proprietorship- It is a unincorporated business claimed and keep running by one
individual with no qualification between the business and the proprietor.
Features:-
 It is very easy to establish.
 Its activities are performed in very confidential and safe manner.
 Resources are very limited.
Partnership- It is a plan in which at least two people share the benefits and liabilities of
a business wander.
Features-
 Unlimited liabilities are there with the partners of the firm.
 There is very high risk in diffusion.
 Availability of capital is very high at time of formation.

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Government company- This business is an association that has the majority of the
accompanying attributes: 1)It is a different legitimate substance with the ability to
contract in its own particular name and that can sue and be sued. 2) It has been
designated the money related and operational specialist to bear on a business.
Cooperatives- It is an association of people joined intentionally to meet their basic
financial, social, and social needs and goals through a mutually possessed and
fairly controlled venture".

Voluntary Sector
This is a firm where an individual initiates to get into an activity for a particular
purpose. They perform their activities for welfare of society. These are established only
to serve customers rather that earning profits.
Example- Diabetes UK is a voluntary based organisation. It is actively performing
operations and functions for society's welfare.
Purpose
• Its purpose of establishment is to concern more for customers and to develop them
from facing crises.
• Non profit organisation.

P2) Size and scope of organisation.
There are different organisations as private, public, voluntary and charity that are
mainly performing various functions for both earning profit and for society's welfare.
Size and Scope of various corporation:-
• Public sector
• Private sectors
• Voluntary organisations

Public Sector
This offers help to social gathering and they play out their exercises to
address the issues that confronted by individuals. They work to
upgrade the solid and standard condition for the social welfare.
 Size of McDonald's
 Products/ services
 Vision
 Mission
 Stakeholder
 Objective

Private Sectors
This segment play out their exercises to create increasingly benefit since they have key
goal to amplify the productivity rather than social improvement. They need to
make constructive picture among the clients with the goal that more individuals
can be pulled in toward them.
 Size of Virgin Group
 Products/ services
 Vision
 Mission
 Stakeholders
 Objective

Voluntary Organisation
It is unique in relation to private and open organizations since they have target to
ensure and secure the social gathering. They give help to society so they can live
with elevated requirement. There are some steady factors as Funder, Trustees,
Volunteers.
 Size of Diabetes UK
 Products/ services
 Vision
 Mission
 Stakeholders
 Objective

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Stakeholders are the those people are interrelated with a company in direct or indirect
manner. They are very much responsible for making several decision and planning.
Types of stakeholder as:-
• Employees
• Customers
• Suppliers
• Government

Conclusion
This report helped in understanding different types of
organisation that are working in society for profit and for
non profit basis. Functions and purpose has also been
understood here as well as size and scope is concluded.

References
Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011. Big constraints to small firms’
growth? Business environment and employment growth across firms.Economic
Development and Cultural Change. 59(3). pp.609-647.
Avramenko, A., 2012. Enhancing students' employability through business
simulation.Education+ Training. 54(5). pp.355-367.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and
firm performance.The Review of Economics and Statistics. 93(1). pp.309-337.
Dahan, N.M. And et. al., 2010. Corporate-NGO collaboration: Co-creating new business
models for developing markets. Long range planning. 43(2). pp.326-342.
Fernando, A.C., 2011.Business environment. Pearson Education India.