top10579 Business and the Business Environmen

comapny The Green Group. :https://thegreen-group.com/

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purposes of organisations with their legal structures..............................1
P2 Size and scope of different types of organisations.................................................................3
TASK 2............................................................................................................................................4
P3 Relationship between different organisational functions and the way in which these are
linked with organisational structure and objectives.....................................................................4
TASK 3............................................................................................................................................6
P4 Identification of positive and negative impacts of macro environment upon business
operations.....................................................................................................................................6
TASK 4............................................................................................................................................8
P5 Internal and external analysis of specific organisation in order to identify strengths and
weaknesses...................................................................................................................................8
P6 Explanation of the way in which strengths and weakness are interrelated with external
macro environment......................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment is the surrounding of an organisation which is focused with
different forces which may leave negative or positive impacts upon business. In order to reach all
the long term goals it is very important for all the companies to pay attention towards all the
internal as well as external forces so that effective strategies for future could be formulated
(Babatunde and Adebisi, 2012). The organisation which is selected for this report is The Green
Group. Currently it is operating business under logistic sector. This report covers various topics
such as different types, size and scope of organisations, Demonstration of interrelationship of
various functions within a enterprise and link of them with objectives and structures.
Additionally, positive and negative impact of external environment along with determination of
internal strengths and weaknesses are also covered under this project.
TASK 1
P1 Different types and purposes of organisations with their legal structures
There are various types of organisations which are executing their operations in different
sectors successfully. All of them are having different purposes for which business is operated by
them. All the types of them are described below:
Public: All the companies which are distributing the shares to general public are
considered public organisations. BBC is one of them which is operating its operations all around
the world and mainly established in London, United Kingdom (Bansal and Hoffman, 2012).
Purpose: Main purpose of BBC is to educate, entertain and inform public with its
broadcasting services so that they can be aware of all the events that are happening all around the
world.
Legal structure: There are three main elements of legal structure of public companies
which are as follows:
 Central: Under this type of structure all the operational activities of the company are
controlled by central government due to large size of it.
 State: This type of legal structure of companies allow the state government to regulate all
the business activities.
 Local: The organisations which are adopting this legal structure are controlled by local
authorities. It is mainly followed by small companies.
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From all the above described types of legal structures BBC adopts central one as it is a
large company which requires proper and effective control of central government.
Private: The organisations which are not allowing general public to buy their shares are
known as private companies. The Green Group is one of the biggest example of it which is
executing all its operations under logistic sector of UK (Davies, 2016)(Erasmus, Strydom, and
Rudansky-Kloppers, 2016).
Purpose: Green Group is operating its business for the purpose of achieving growth with
the help of progressive thinking of it. Its objective is to satisfy all its clients by focusing upon
technological advancement.
Legal structure: There are four main types of legal structure in private sector which are
as follows:
 Sole trader: The business which is operated by a single person follows this legal
structure in which all the losses and profits are faced by the owner.
 Partnership: When a business is executes by two or more persons or companies then it
is known as partnership firm and this legal structure is followed by those businesses.
 Limited companies: There are two types of limited companies which are private and
public. These organisations are separate legal entities which are running business for the
purpose of achieving growth or increasing profits.
 Cooperatives: This legal structure is followed by such businesses which are operated by
a group of people for the purpose of fulfilling all their economic, social and cultural
needs.
From all the above described legal structure The Green Group is following the limited
companies structure because it is a private limited company working for the purpose of attaining
growth (Gupta, 2013).
Voluntary: The organisations which are operated by volunteers for societal welfare are
known as such companies. Oxfam is one of the largest voluntary enterprises which are concerned
with reduction of poverty and help people to live their life happily by fulfilling all their basic
needs.
Purpose: Oxfam is performing different activities for welfare of society so that all the
individuals who are not able to live happily due to poverty can get all the required facilities for
living.
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Legal structure: Voluntary companies are also having legal structures as they are
required to take permission from government to perform all their operations. Elements of it are
as follows:
 Trust: Companies under this structure are supported by trustees which are providing
charities to the organisations to perform different activities for welfare of society.
 Unincorporated association: Under this structure two or more people come together and
perform different activities for specific purpose and when it is achieved their job is over.
From both the above described structure Oxfam is a trust which is sponsored by different
trustees which are providing it funds to perform activities for societal development (Hilton and
Platt, 2013).
P2 Size and scope of different types of organisations
All the companies which are executing business in the market for different purposes have
different size, scope, objective, products, services, vision, mission etc. Description of all of them
for predetermined companies is as follows:
Basis Public (BBC) Private (Green Group) Voluntary (Oxfam)
Size The size of BBC is large
as it is operating business
all around the world.
Size of the company is
large as it is delivering
logistic services to most
of the largest companies
such as Kelloggs.
Oxfam is also a large
company which is a
confederation of 19
independent charitable
organisations.
Scope Its scope is broad as its
portfolio is diversified and
innovated with latest
techniques.
Scope of Green Group is
wide as it deliver its
logistic services to larger
organisations.
Scope of Oxfam is
moderate as it perform
operations for poverty
reduction.
Products and
services
Broadcasting services are
delivered by BBC to the
public all around the
world.
Logistic services are
offered to large
companies such as
Morrison, Kelloggs etc.
It provides welfare
services to poor people
so that they can live
happily (Palepu and
Healy, 2013).
Background It is one of the largest It is a large company that It is a voluntary
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broadcaster of world
which are founded in year
1926 and operates under
Royal Charter.
provide logistic solutions
to its clients and it is
delivering services since
last 25 years.
organisation founded in
year 1942 and perform
operations to remove
poverty.
Vision Vision of BBC is to build
a world where all the
individuals are empowered
and informed and live in
healthy community.
Vision of the company is
to be on the top of the
logistic industry in
upcoming years.
Its vision is to make the
world free from poverty.
Mission BBC's mission is to act in
public interest and provide
such services to audiences
with its good quality
facilities.
Its mission is to provide
best logistic solutions to
all the clients so that they
could be retained for long
term (Palo and Tähtinen,
2013).
Mission of Oxfam is to
find the roots of poverty
and find best suitable
solutions to respond
them.
Objective To entertain people with
its high level of programs
and services.
Main objective of the
company is to achieve
growth and increase
profits by delivering best
services.
Main objective of the
company is to help
people to deal with
poverty and live a safe
life.
Stakeholders Managers, employees,
government, local
community etc. are
stakeholders of BBC.
Investors, suppliers,
customers such as
Morrisons are key
stakeholders of it.
All the trustees,
volunteers and other
members of organisation
are considered as
stakeholders of the
company.
Critical evaluation of complexities: There are various complexities are faced by Green
Group as compare to other two organisations because of its organisational structure. The staff
members have to report to different supervisors which affect their work quality and create
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confusion for them ( Interrelation of structure and function, 2019). The chart below shows the
interrelation between functions of the company and the structure:
Illustration 1: Interrelation of structure and function, 2019
(Sources: Interrelation of structure and function, 2019)
From the above chart it can be analysed that different functions of the organisation are
interrelated with each other and it also relates to the stricture of Green Group. The employees
which are performing different functions can report to the supervisor of another function because
of matrix stricture within the organisation.
TASK 2
P3 Relationship between different organisational functions and the way in which these are linked
with organisational structure and objectives
Organisational structure can be defined as the system which is followed by all the top,
middle and lower level staff members of the company to run a chain of command and operations
in systematic manner (Sena Ferreira and Cunha, et. al., 2012). There are various types of them
which are adopted by companies such as Green Group according to their requirements. All of
them are as follows:
Functional: Under this structure organisations are divided in small groups and all of
them are having specific roles and responsibilities. All the departments in the companies where it
is followed one director is appointed to guide all the members who are working in it. A proper
hierarchy is followed by all the employees of companies which are following this structure.
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Divisional: This structure provides autonomy to the employees of the company and
focused with horizontal objectives of different departments. All the divisions under it perform
their activities as a separate entity and spend money on certain project which are allotted to them.
Matrix: It is also known as blend of divisional and functional structure in which staff
members can report to more than one supervisor. It may create issues for the employees they
may not aware of their duty to report and working according to direction of which superior.
Flat: It is mainly used in small business entities in which single horizontal chain of
command is followed. All the superiors and employees have right to take part in decision
making.
From all the above described structures managers in Green Group are following matrix
structure in which all the activities are performed in systematic manner and staff members report
to multiple leaders to make sure that they are performing appropriately.
There are various types of functions which are performed by Green Group and all of
them are interlinked with each other, organisational objectives and structure. Their interrelation
could be understood with the help of following discussion:
HR and finance: These two functions of Green Group are interrelated with each other
because in order to perform all the operational activities it is very important for management to
manage financial resources properly. For example, if HR activities such as recruitment, selection
are required to be performed then it is very important for managers to make sure that they are
having sufficient funds (Sena Ferreira and et. al., 2012). These are also linked with objective
because if these are performed appropriately then company can achieve growth. Structure is also
related with them because it guides employees to be clear about their responsibilities and
perform the functions appropriately.
Marketing and IT: For companies it is vital to market its products and services
according to latest technology. It shows that all the marketing functions of Green Group are
related with IT because while performing them it is very important for management to make sure
that these are performed by taking technology in to consideration. Organisation's objective of
profit and revenue maximisation is related with them because by executing both of them
perfectly large number of customers could be attracted which may result in higher profits. Matrix
structure is also linked with it because the employees associated with IT functions may have to
report to marketing manager in order to formulate effective strategies.
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TASK 3
P4 Identification of positive and negative impacts of macro environment upon business
operations
Macro environment can be defined as the external forces which are leaving positive and
negative impact upon operational activities of business. For the purpose of analysing it PESTLE
analysis could be used by organisations such as Green Group. There are six different elements of
it which are discussed below with their positive and negative impact upon the company:
Political: It is highly focused with different elements such as foreign trade, fiscal policy,
political instability etc. which are required to be focused by Green Group. Negative and positive
impacts of them are as follows:
 Positive: The management within the organisation try to be aware of all policies of
political parties of UK to make effective strategies according to them.
 Negative: Unstable political situations may result in inappropriate execution of business
and lower growth (Wetherly, 2014).
Economic: Interest, inflation, exchange and deflation rates are economic factors which
may leave positive and negative impact upon business operations of Green Group. All of them
are discussed below:
 Positive: Keeping detailed information of fluctuation in them helps the organisation to
set right price for all its services.
 Negative: Sudden changes results in improper price setting because the management may
get confused due to continuous fluctuations.
Social: Customer's taste, preferences, age, buying behaviour etc. are social factors that
should be taken in to consideration by managers of Green Group to accomplish organisational
goals. Negative and positive impacts of them are as follows:
 Positive: All the policies and strategies in Green Group are formulated according to
social factors that help to fulfil demand of customers.
 Negative: If the culture of the area where business is operated is not followed then it may
result in higher losses for company.
Technological: Innovations, technological advancement, latest techniques etc. are such
elements that may benefit Green Group if these are taken in to consideration properly. All the
positive and negative impacts of it are as follows:
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 Positive: Management uses latest technologies to market the services which help to attain
competitive advantage in the market.
 Negative: If the manager are not able to execute operations according to latest
technology then it may result in losses for company.
Legal: Different laws such as health and safety, labour law, advertising standards etc. are
such components which should be focused by the managers of Green Group to run operations
appropriately. All its impacts are as follows:
 Positive: All the rules and regulations are followed properly within the organisation
which help to establish a good market image.
 Negative: If laws are not complied by managers then it may result in government
interference in operational activities.
Environmental: Pollution control, climate change, environmental laws etc. are part of
this element and for Green Group it is very important to focus on them to run operations
systematically. Impact of this factor are as follows:
 Positive: As Green Group is a logistic company so the managers make sure that its trucks
are not increasing pollution and harming environment which is good for its corporate
image.
 Negative: If one of the business activity leaves negative impact on the environment then
it will affect the operation negatively.
TASK 4
P5 Internal and external analysis of specific organisation in order to identify strengths and
weaknesses
Internal analysis is used by the organisation in order to evaluate competencies as well as
build capability for the effective functioning of firm. It consist of the internal strength as well as
weaknesses on the basis of which strategy can be prepared to exploit the external opportunity as
well as threat effectively. The SWOT analysis for the The Green Group as well as BBC company
are demonstrated below:
SWOT for The Green Group
Strength: Green group company has the large size, extensive network as well as
immense technology that led to attract the various clients to whom the company gives the
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valuable solution. So the reliable solution has attracted the vast companies like Fox's biscuit,
Kelloggs as well as Morrison company to gain the wide services such like providing logistics,
Warehouse solution as well as Pallet network. This influence the decision making of firm which
is associated by providing best possible services fro systematic functioning.
Weakness: To manage the huge workforce of company that function across the national
boundaries can lead to mismanagement of the brand that can affect its functioning (Rademakers,
2012). As The Green Group works with the high end customer so they cannot compromise
against the causal behaviour for the essential inventories of company.
Opportunity: The company can use the advance tool and technique in order to cater the
augmented demand of the clients in terms of world class services associated with warehousing as
well as logistics.
Threat: The Green Group experiences competitive pressure from the various industries.
Additionally, as the company function within periphery of UK so any change in the external
faction can directly affect the profitability of firm.
SWOT for BBC company
Strength: BBC has gained the strong brand image because it has been preferably
operating its business from the long tenure. Along with that it has adopt the Focused marketing
campaign that is useful for the viewer to gain all the necessary updates and carry out the business
functioning effectively.
Weakness: BBC have received various allegations in terms of broadcasting the biased
news due to which it became the part of various controversies by raising the sensitive issue. This
has somewhat kept the viewers interest and loyalty at stake (SWOT analysis of BBC, 2019).
Opportunity: In order to strength its position BBC can form the partnership with different
satellites channel so they get the immense information and large section to cover. This is the
favourable technique that can help to retain the interest of viewers (Rocha, 2012).
Threat: The strong presence of the competitors and their innovative contribution is the
threat to company. It include the companies such as CNN that can affect the operations of firm
and decline profitability. So to cope with the external environment respective company need to
adopt the preferable strategy with to objective to retain its customer base.
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P6 Explanation of the way in which strengths and weakness are interrelated with external macro
environment
All the strengths and weaknesses of Green Group are interrelated with the external macro
environment. It could be understood with the help of following discussion:
Strengths: By focusing on all the technological and social factors such as latest
technology, preferences of clients etc. company has acquired extensive network in UK. It has
helped it to generate higher profits and growth for future (Zeng and Duan, 2012).
Weaknesses: The legal and political factors such as governmental policies and political
instability has resulted in cross border boundaries for the organisation. It is also affecting the
functioning of the business that results in lower profits.
CONCLUSION
From the above report it has been determined that there are different type of companies
such as private, public or the voluntary that have different purpose, size as well as scope but they
need to identify the internal as well as external factor for smooth business operations. Along with
that there are different functions of an organisation that are interrelated with one another in order
to maintain the coordination and positively affect the business process. Further, for the macro
environment the firm need to prepare the PESTLE as well as SWOT analysis in order to gain the
deep insights and focus on the core competencies to gain the potential market and function
effectively to gain the advantage of long term sustainable development.
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REFERENCES
Books and Journals:
Babatunde, B. O. and Adebisi, A. O., 2012. Strategic Environmental Scanning and Organization
Performance in a Competitive Business Environment. Economic Insights-Trends &
Challenges. 64(1).
Bansal, P. and Hoffman, A. J. eds., 2012. The Oxford handbook of business and the natural
environment. Oxford University Press.
Davies, P. W., 2016. Current issues in business ethics. Routledge.
Erasmus, B., Strydom, J. W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Gupta, A., 2013. Environment & PEST analysis: an approach to the external business
environment. International Journal of Modern Social Sciences. 2(1). pp.34-43.
Hilton, R. W. and Platt, D. E., 2013. Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.
Palepu, K. G. and Healy, P. M., 2013. Business analysis and valuation: Using financial
statements, text and cases.
Palo, T. and Tähtinen, J., 2013. Networked business model development for emerging
technology-based services. Industrial Marketing Management. 42(5). pp.773-782.
Rademakers, T., 2012. Activiti in Action: Executable business processes in BPMN 2.0. Manning
Publications Co..
Rocha, E. A. G., 2012. The impact of the business environment on the size of the micro, small
and medium enterprise sector; preliminary findings from a cross-country comparison.
Procedia Economics and Finance. 4. pp.335-349.
Sena Ferreira, P. and Cunha, et. al., 2012. Framework for performance measurement and
management in a collaborative business environment. International Journal of
Productivity and Performance Management. 61(6). pp.672-690.
Sena Ferreira, P. and et. al., 2012. Framework for performance measurement and management in
a collaborative business environment. International Journal of Productivity and
Performance Management. 61(6). pp.672-690.
Wetherly, P., 2014. The business environment: themes and issues in a globalizing world. Oxford
University Press.
Zeng, L., Li, L. and Duan, L., 2012. Business intelligence in enterprise computing environment.
Information Technology and Management. 13(4). pp.297-310.
Online
SWOT analysis of BBC. 2019. [Online]. Available
through:<https://www.marketing91.com/swot-analysis-bbc/>
Interrelation of structure and function. 2019. [Online]. Available through:
<https://www.slideshare.net/GovernanceHome/business-functions-and-organisation>
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