top10579 Business and the Business Environmen

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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