Types and Purposes of Organizations and their Business Environment: A Case Study of Nike Inc.

Business and the
Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain the various types and purposes of various organizations; Public, private and
voluntary sectors and legal structures. .......................................................................................3
P2 Explain the size and scope of a range of various types of organization................................5
TASK 2............................................................................................................................................7
P3 Explain the relationship between different organizational functions and the way in which
they link to organizational objectives and structure....................................................................7
Relationship between different business functions of an organisations:....................................8
Organisational Structure:............................................................................................................8
TASK 3............................................................................................................................................9
Identifying the macro environment factor which have positive and negative impacts upon
business operations:-...................................................................................................................9
TASK 4..........................................................................................................................................11
Internal and external analysis of organisation in order to identify the Strengths and weakness:
...................................................................................................................................................11
Interrelation of strength and weakness with external macro factors.........................................13
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business is referred to a set up that is established with an aim of earning profits in the near
future. Each business has its specific structure and rules as per their legal status. The various
legal status for business set ups are sole proprietorship, partnership, limited liability organization,
etc. Each business has its business environment specifically. Business environment is referred to
the surroundings of a business organization that directly or indirectly has an impact upon the
business operations (Barr and et .al., 2018) . Business environment are of two types namely
Internal business environment and external business environment. Internal business environment
is referred to the internal elements from within the business that affect the business operations
such as employees, managers, etc. The external environment is referred to the components that
are outside the business that and its impact upon the operations can not be controlled by the
business. The following report cover the information about the different types of legal and
organisation structure along with their size,scope, mission, vision and many more. This whole
report is based on the NIKE .Inc. which is a multinational brand of America. This is a public
listed company founded in January 25, 1964 by Bill Bowerman and Phil Knight.
TASK 1
Covered in factsheet
TASK 3
Identifying the macro environment factor which have positive and negative impacts upon
business operations:-
PESTLE analysis:
The Pestle analysis mat be define as a framework which are used by the companies in
order to identify the external factor which have have a grate impact on the different functions of
the business. The Pestle analysis of the Nike Inc. is explained below:-
 Political Factor:- This factor had a grate impact on the working of the company. This
comprises tax rate, political stability, political interference and many more. As Nike Inc.
is a multinational brand then, they have to work according to the rules and regulation of

each country, because different countries have different rules(Hamilton and Webster,
2018).
◦ Positive impact: the political stability of the government of US is very high and due
to this they don't make changes in their policies and programmes on regular basis. So
the Nike Inc. posses smooth functioning of their business operations because of their
long term policies.
◦ Negative impact:- Sometimes company have to import their raw material from
outside countries. The import duty change on regular basis and because of the regular
change in this, sometime cost of product also increase.
 Economical factor:- This economic factor directly impact on the working of the
business. This includes wages, cost, gross domestic product of the country, profit,
growth rate, unemployment rate and many more. The Nike Inc. is required to focus on
the variable interest rate and wage rate of the countries. The value of the currency is
differ from country to country.
◦ Positive impact: if the different resources like labour, electricity, funds etc. are
available for the Nike Inc. in a very effective manner then they can operate their
business smoothly(Kiseľáková and et .al., 2019) .
◦ Negative impact:- if the skilled labour are not available and the fund are available at
the high rate then the company cannot conduct their business properly and ultimately
out from the market.
 Social factor: This factor is related to the change in consume behaviour trends, change I
fashion and preferences of the customer, rate of population, perception values, desire and
many more. In context to Nike Inc., the company have to maintain the quality of their
goods and services according to the need and demand of their potential customer. The
factor which affect the company most is change in preferences and behaviour of the
consumer.
◦ Positive impact:- if the Nike Inc. make and design their products according to the
need and demand by keeping quality factor on top then, the company operate their
business functions smoothly and don't face any problem.