Business and Business Environment: Types of Organizations and Legal Structures

This report discusses the types and purposes of organizations, legal structures, and their impact on business operations. It includes a case study of Morrisons, NHS, and Oxfam. The report evaluates the positive and negative impacts of macro environment factors such as political, economic, and social factors. It also elaborates on the relationship between different organizational functions and their link to organizational objectives and structure.

Unit 1 -
BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................5
P1- Explain different types and purposes of organisations; public, private and voluntary sectos
and legal structures......................................................................................................................5
P2- Elaborate the size and scope of a range of different types of organisations.........................6
P3- Elaborate the relationship between different organisational functions and also discover
how they get link to organisational objectives and structure. ....................................................7
P4 Evaluate the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................9
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses. ........................................................................................................10
P6 Explain how strengths and weaknesses interrelate with external macro factors.................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
The United Kingdom is one of the safest and the easiest place to do business around the world.
They have a free market economy and the resources will be distributed according to the demand
and supply. It is very necessary to understand the environment of the business because the
success is depend upon the environment only, there are many factors of the environment which
influence the business either directly or indirectly. However it is crucial to have the knowledge
about the several factors of the business environment such as; political factors, economical
factors, socio factors, technological factors and the legal factors etc. These are the factors which
are beyond the control of the business organisation's but, it becomes the duty of every business
organisation to understand the impacts of internal as well as external environment of factors. The
term business environment can be defined as the surroundings of the business market which put
the impact on business, through the analysis of these environment factors business can be run
smoothly and raising the benefits from the upcoming opportunities (Aboelmage and Hashem,
2019). As per the demand of the report, in context to Morrisons which is the fourth largest
supermarket chain in the United Kingdom . The company was founded in 1899 by William
Morrison, company initiated with small egg and butter stall in Bradford, England. As of now the
company growth is at extreme level, they have 497 supermarkets across England & Wales and
Scotland and also in Gibraltar. The company headquarter is situated in Bradford, West Yorkshire
in England. It is the British multinational retailing company engaged in groceries and
merchandise. There are some other companies taken to fulfil the requirement of the report for
that, National health service was taken which provides and the healthcare system for the public.
The company was established in 1948, their main aim is to provide the healthcare to those who
are not able to pay. Another organisation is taken fro the comparison i.e. Oxfam which is the
amalgamation of 20 charitable organisation, their main motive is to raise the voice against global
poverty. The company got the name and entered in the market in 1942 in the name of Oxfam
International, it is come under the international NGOs and its headquarter situated in Nairobi,
Kenya. The said report will provide the legal structure of the companies and the factors which
affect the business operations.

TASK
P1- Explain different types and purposes of organisations; public, private and voluntary
sectos and legal structures.
There are multiple types and purposes of organisations. Let us discuss them in brief :-
 NGO (Non For Profit organisation's) - These are the type of organisation which
have a sole proprietor and which collects charity, or the profits for the purpose of
expanding , improving as well as maintaining the work of the organisation . Now a days
there are various program have been introduced for the purpose of connecting the people
to collectively work together for an NGO.
 SME- are known as the Small , Medium enterprises usually smaller level of the
businesses . They play a major role in the distribution of the employment to the
providence of the country. In other words those enterprises or the companies which have
not been yet expanded to the level of the large scale businesses are SMES.
For instance the Morrison was established in the year of the 1899 by a man named as
William which use to be a small medium sized enterprise as the business initially carried
only the sale of egg and butter in the local market of the England (Antony and Gupta,
2018) . However it has now turned as the 4th largest flea market across the world with
approx 497 stores which is no longer an small medium sized enterprise .
 Public Organisation - As we discussed earlier that there are certain organisations which
are owned and controlled by the private proprietor and where , as far as the public
organisation are concerned they are mainly managed or controlled by the administration
or the government agencies also approximately around fifty percent of the amount which
gets back to the members of the company after repayment of the debts also be termed as
the equity are accessed by the government in the public organisations.
Different organisational Structure-
Single Trader - These are the type of the offices or the businesses which is managed and
controlled by the individual owner (Flett, Wilson and Gover, 2020) . Hence it is the individual
owner who is responsible for the all the fails and successes in the company.

Partnership - Where two or more than two persons collaborate with each other in order to start a
business together on the basis of the partnership deed they form a partnership . Each and every
partner is equally accountable for all the failures and success of the other in the company.
Company/corporation- When large number of persons with their own free form a structure of a
particular business can be a corporation or a company (Booth, 2018) . The directors of these
corporation are known to be the employer and whereas the persons employed in the corporation
are the employees .
Legal Structure - different type of legal structure are as follows:-
 Cardinal Governance- The central or the cardinal government is responsible for the
distribution of the budget to the companies , but with their endorsement or the
confirmation , the company can get the budget .
 State Government - Unlike the central government the state government also performs
certain functions and are responsible for the actions of the companies. But they perform
every function in a very systematic manner or as ordered by the central government.
 Local Government- In this type of governance performing the finance and the
interpersonal factors for admittance the companies by correspond the supplying of the
local government act 1972.
P2- Elaborate the size and scope of a range of different types of organisations.
Basis Morrisons NHS Oxfam
Vision The company has a
vision on the market
place which they want
to hold in future
which, helps the
company to capture
the market around the
The company vision is
on the healthcare of
the people, to serve the
society with their
health care system
(Fun, 2021). Their
main is to spread
The company is very
enthusiastic towards
their work, they made
their vision clear due
to which they have
positive image in the
market. The company

world. Such type of
vision will helps the
company to valued
their shareholders and
the society in which
the company regulates.
awareness and also
treated the people well
which keep them
healthy and protect the
people from hazardous
diseases.
vision is on doing
good charity which
helps the society in the
hard time.
Mission The main aim of the
company is to provide
their product in each
and every house
around the world.
Their mission is to
make their product
reliable and better in
qulaity which enhance
the company growth.
Their mission is to
provide the healthcare
to all such people's
who are in need. The
company motive is to
spread the awareness
of healthcare in
society and helping
through providing
their services.
It is not easy to raise
the voice against the
government and for
the favour of all the
people. The company's
mission is to fight with
poverty and motivate
the generation to get
justice.
Size and scope This company has
great past which
shows its scope
(Gorlova, 2020). They
increase their areas of
business and as of year
2021, they spread their
location around 497
different places.
Such type of business
is very difficult is to
run as it is the business
which runs for the
public interest and
they provide their
services to millions of
people.
These business would
run to make chain with
their similar type of
business structure. The
company has a
collaboration with
twenty particular
charitable business to
remove the poverty
around the world.

P3- Elaborate the relationship between different organisational functions and also discover
how they get link to organisational objectives and structure.
There are various types of business organisation's and all their individual and own
systems to run the business. It depends up on the structure of the organisation according to that
the management of the organisation's perform their activities. In context to Morrisons which
become the fourth largest supermarket chain in the UK, they have around 11000 employee's who
are performing the company's business operations (Monteiro, 2019). To perform the work they
required the proper system and structure to follow for fulfilling the business requirements.
Another company which is NHS have the fifth largest number of employee's in a number of 1.2
million who are performing in the company. Having this number of employee's require the
management and the system to run the business activities smoothly. There is one more company
which is taken to cover the requirement of this report is Oxfam which is the charitable company,
functions to perform in such type of company is complex which requires a proper structure to
perform the business operations. There are few structures which company can use in their
business operations.
 Stratified Organizational Structure- it is the most common form of business
organizational structure of the private organisation. In this type of structure the
management is divided into parts according to the levels such as top level management,
middle level management and the lower level management. The benefit to divide the
management work is that, the information regarding the business operations were
communicated easily and effectively, and it makes the management work easy.
 Utilitarian organisational structure- This structure is similar to the above structure, in this
organisational structure also there is a division in the level of management but the
difference is the management is got divided as per the skills of the individual. In context
to NHS, they provide their services on the basis of clinical suggestion which the person
really desire and not on the basis of amount they have.
 Horizontal or flat organizational structure- In such type of organisational structures there
are not many level of management. The management got divided into two level in which
one is the top level and the another one are the employees levels (Pathak, 2022). This
structure made the communication easy for the employee's with the top level
management. There is a benefit of it, the information didn't bifurcated, information is

conveyed as it is in the original manner and the employee's solve their problems by
directly communicate to the management. In context to Oxfam the company indulged
into twenty other trust businesses and it will be helpful for the company of having less
level of management.
In context to Morrisons which is the larger supermarket industry, it deals in home products, food
products and clothing. Their success reasons are the quality in their products and to expand their
business in different areas such as;
 Promotion and sales department- It is necessary to promote their products and the
company, this department having this duty to promote the company name and its
functions in the market. The sales department keep the records of each and every sale
made in their store.
 Human resource and account- if the company have perfect knowledgable employee then
the work also get done in effective as well as in efficient manner. The HP department has
the responsibility to select those employee's who were aware and have some skills in
selling or dealing with the customers (Prentice, Nguyen, Nandy, P., et.al 2021). There is
another department in a company which keeps all the records and data of the company, it
is very crucial to maintain fro the financial records.
P4 Evaluate the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
The positive and negative impact of macro environment helps the organisation to evaluate
their operations and efficiency. It is significant to analyse the environmental factors time to time
to uncertain the dynamic business environment.
There are Pestle analysis has been made to enter into the new market are discussed below:
 Political factors – The current political stability in UK helps the company to increase
their trade and business in the international market. The government policies and rules
are effective for the growth and success of an organisation. In context to Morrisons, the
political factor directly influence their policies and plans and help them to survive in the
competitive market for a long run.
 Economic factors - it refers to the employment rate, interest rate, tax rate etc. These are
some of the factors that helps the company to analyse the uncertainty of the market that

may fluctuate due to change in the demand and supply of goods. +the economic analysis
is important to make frequent changes in their business plan and policies to sustain long
term growth of an organisation. In context to Morrisons, they have achieved the
continuos success and growth due to the economic policies that contributes in
establishing the organisation's policies and standards for the betterment of their
stakeholders.
 Social factors – it is another important factor that has positive and negative impact on the
operation of an organisation. The continuos change in human taste and preferences
increases the burden over the organisation to meet their needs and demand in the market.
The social factors change frequently as it varies according to the nature, geographical
boundaries and age factor and required the organisation to product the good accordingly.
 Technological factors – The demand of innovation and creativity tends to increase due
to emergence of new industries and modernisation of an organisation. It increases the
operation and efficiency of an organisation and reduce the work pressure over the
employees. However, an organisation who have advanced technology and creative ideas
can only survive in the competitive market for a long run.
 Environmental factors – The protection of environment and climate is important to
maintain the ecological balance in the system. An organisation which is using the
sustainable method of production can increase their profit earning capacity and long term
growth in the competitive market. However, the pollution free technique and elimination
of harmful chemical substances helps the company to minimise the risk of health on the
society members and can develop product through cost effective technique.
 Legal factors – The legal policies and standards plays crucial role in the success and
growth of an organisation. Sometimes, imposition of new laws and statutory framework
creates barriers in their desired goal (Tripathy and Jyotishi, 2020). However, the UK
policies and legislative framework are complex that provides the organisation an
opportunity to grow and achieve the desired goal by implementing those legal policies
and standard in favour of their employees and employers. In context to Morrisons, the
employment law of land helps the employees and employer to secure their rights and
interest within an organisation. It creates positive environment for them at workplace so
that they become satisfy at workplace and leads to reduction in employment turnover.

P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses.
Swot analysis of Morrisons,
Strength
 The company is second largest
supermarket chain in the UK and works
on the specific business model that
helps them to success in the
competitive market for a log run.
 It offers huge range of products and
services to consumers like food,
beverages and other necessary items.
 It has effective supply chain and
distribution channels that deliver the
product on the different part of the
world.
Weaknesses
 It has limited scope as compared to
other business brands. Its limited
geographical boundaries creates
barriers in expansion of their business.
 Ineffective management in their
policies sometimes affects the ultimate
goal of the organisation.
Opportunity
 Morrison is a growing company and
their quality services and range of
products can add value in their
organisation.
 Online supply and discount channels
are fastest growing sectors in UK.
Threats
 Change in government rules and
regulation may affect the operational
policies of the Morrisons.
 Technological advancement is another
risk factor which may cause major
threat to an organisation.
Swot analysis of NHS
Strength Weaknesses

 The company is morally and ethically
bound to protect the rights of its
employees. Their employees are highly
motivated and satisfied.
 The well established mechanism and
governance polices are the sources of
their success and provide best medical
facilities to their clients.
 During emergency, they are failed to
provide adequate health care services to
the
 patients.
 The high fees and health services
charges sometimes affects the potential
consumers to avail their services. It is
not possible for everyone to access their
costly health services.
Opportunity
 Availability of large amounts of
financial resources through government
funding help them to access their
technological advancement to meet the
new opportunity in the competitive
market.
 The use of IT tools and internet sources
helps them to interact with the patients
and the clients to provide them
adequate health services.
Threat
 The imposition of legal compliances
burden the health sector to abrogate
with those standards. The privacy and
data protection related legislation are
binding upon such organisation.
 The loss of market and lack of
technological upgradation may cause
serious threat to such organisation.
P6 Explain how strengths and weaknesses interrelate with external macro factors.
The analysation of internal and external factor helps to examine the strength and weaknesses of
an organisation. The main objective of every organisation is to create brand value and goodwill
in the market (Schmitt, 2021). It adds value in the functioning and efficiency of an organisation.
Some of the external factors has been discussed below in detail:
 Political factors – It refers to political stability and agenda that affect and establish
major change in the polices and plans of the organisation. The transition period during
Brexit brings drastic change in the UK economy and leads to creation of a single market.

 Economic factors – It includes employment rate, interest rate etc. highlights the
economic growth of the country. In relation to Morrison, it is reputed and recognised as
well established retailer supermarket chain in UK. It is performing well in the
competitive market and economic policies are significantly supporting in their success
and growth.
 Social factors - These factor influences the behaviour and preferences of the individual.
It considers the various elements that are changed by the time and important for the
organisation to examine in order to survive in the competitive market for a long run. The
increase in demand of creative and advanced technology increases the expectation of
consumer from the organisation (Teteryuk, 2021). However, Morrison is successfully
providing the range of products to the consumer through their distribution channels to
meet their need and demand.
 Technological factors – It is an important external factor that enhances the efficiency
and overall functioning of the organisation. It adds value and increase the competitive
spirit of the businesses by investing in upgraded technology that will reduce their cost. In
relation to Morrison, they developed their grocery items by using processed technique
and method to increase their production capacity.
 Environmental factors – The use of sustainable method and cost effective technique
help them to minimise the wastage of resources. The scarcity of resources obliged the
ethical duty over the businesses to effectively and efficiently utilise such resources.
However, Morrison uses sustainable technique to produce grocery items to establish
brand value and goodwill in the market.
 Legal factors – This factors has great impact on the functioning of an organisation
because the establishment of several rules and regulations are binding upon the business
and they are legally comply to follow those legislation within an organisation. In context
to Morrisons, they are ethically and morally practice the statutory framework to satisfy
their stakeholders and influence their conduct through implication of such norms and
standards.
CONCLUSION
From this above report, it has been concluded that different kinds of business organisation
are involves in range of services and production activity. The internal and external factor have

greater impact on the success and growth of an organisation as it helps them to analyse the
market fluctuation to work accordingly. It is important for an organisation to establish effective
plans and policies by anticipating the market need and demand so that they can survive in the
competitive market for a long run. An organisation performs different roles and responsibilities
in order to satisfy their employees and other stakeholders who are important of their growth and
expansion. The PESTLE and SWOT analysis of business helps to determine the mission and
vision of the organisation.

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