Understanding the Business Environment in Various Organisations

This report provides an understanding of the business environment in various organizations, including the National Health Service, The British Red Cross, and John Lewis. It covers the different types of organizations, their structures, and their interrelationship with different functions. The report also explores the size, scope, and objectives of these organizations.

UNDERSTANDING THE BUSINESS
ENVIRONMENT IN VARIOUS
ORGANISATIONS

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Different type and purpose of organisation.................................................................................3
Size, scope of range of different types of firm............................................................................4
Critical analysis of complexities of different types of business structure and their
interrelationship with different functions....................................................................................5
Analysis of the way structure, size and scope of three organisation are linked to their
businesses objective.....................................................................................................................6
Advantages and disadvantages of interrelationship between organisation functions and their
impact on organisation structure..................................................................................................7
CONCLUSION................................................................................................................................8
TASK- 2 Covered in PPT................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Businesses environment is every changing or dynamic in nature as taste and preference of
people, technology and policies of government change that adversely impact on businesses
operations. In external environment there are public, private and voluntary firms that operate
with different scope, purpose and legal structure. Moreover, the businesses function such as
human resource, finance and operations are interrelated to company objectives and structure.
This report has covered crucial information related to three different organization like The
National Health Service (NHS) – a UK government organization, The British Red Cross – a
UK registered charity and John Lewis – a private company. It has covered its size and scope
or purpose of operating in external environment and the way function has lead in achievements
of company goals.
TASK 1
Different type and purpose of organisation
Organisation is enterprise that has decided to start a new business with an motivate to
delivered products and services to customers so that it can enjoy high profitability. Public,
private and voluntary organisation are different firm that are operating in external environment
of United Kingdom. Likewise, private firm are enterprise that are mainly run in order to earn
high profit margin so that focused on delivering qualitative services to customers. On the other
hand, public enterprise are firm that operate to provide effective products and services so that
lifestyle of people can be improved or their necessity can be fulfilled in the best possible manner.
Therefore, three different type of firm that have different purpose National Health Service, The
British Red Cross and John Lewis which can be illustrated as follows:
 National Health Service (NHS) – a UK government organization: National health
services has been established in 1946 that provide comprehensive health care throughout
the United Kingdom. This organization is public firm that is operating at wide scale in
order to deliver qualitative health care services to people so that they live better lifestyles.
In addition to this it has capabilities to raise capital through public by directly issuing
share to individuals. NHS can also have minimum 3 directors and minimum 7 number of
shareholders that are responsible for taking all necessary decision-making of business for
better outcome (Richards and et.al., 2019.). So company take some amount of money

from patient for delivering healthcare services to patient. Therefore, the motivated is not
to earn profit rather than providing services that can help people living in society.
 The British Red Cross – a UK registered charity: On the other hand it is another firm
in UK that is social enterprise working for benefits of people, does not take money from
people to delivered its services. The British Red Cross has been established in 1870 with
an motivate to helps people in crisis both in UK and overseas. It is trust that is run or
operated by few members to support and help people in living better lifestyles (Metallo,
and et.al., 2018). Moreover, it does not charged money from individuals in order to
delivered services to them. Thus, the main purpose of company is to helping people
without discrimination that is regardless of nationality, political belief and ethnic origin.
 John Lewis – a private company: While, it can be stated that John Lewis is private firm
operating in retail sector and started its operations in 1864 in Oxford street. The main
purpose of company is to earn profit or huge market share through offering wide range of
products and services to customers for fulfilment of their needs. Moreover, John lewis
raise its fund from private investor rather than giving share to public for smooth running
of business. Therefore, it can be stated that John lewis has always tried to improve or
innovate its products and services to make customers happy and satisfied to maximum
extend.
Size, scope of range of different types of firm
From the above analysis, it has been understood that there are different firms that have
different objectives, purpose to grow and smoothly operates its businesses in external
environment. They all may can also be differentiated on the basis of size, scope of operations
such as:
 National Health Service (NHS): NHS is public funded healthcare system in England
which is second largest single payer healthcare system after Brazilian. The organization
has around 1,171,335 as per 2020 that are hardly working for growth and benefits of firm
or to delivered qualitative healthcare services to patient. Furthermore, it has huge scale of
operations that helped in treating millions of individual every year. Likewise, it has been
estimated that total 16.3 million hospital admission and 23.5% higher than 10 years
previous. Therefore, it has huge size and scope in terms of employees, market share and
services rendered to people living in society (Schoemaker, Heaton and Teece, 2018). Or

it come under large enterprise as it have wide scale operations, number of employees and
diverse range of services given to its patient for better healthcare.
 John Lewis: It is British company that has departmental stores and offering banking and
financial services to customers. The founder of John lewis is Jon Spedan Lewis that have
started company with aim to earn huge revenue through meeting customers expectancy
beyond their wants. In additional to this it has around 83,000 that are dedicatedly and
determinedly working so that company can gain and retained competitive advantages in
retail sector of UK. It has been identified that company have earned around £10,151 m of
revenue and £146 m profit through delivering range of products and services to different
customers. Thus, it can be stated that it can be categorized as medium enterprise that is
operating in private sector of United Kingdom to earn maximum revenue and
profitability.
 The British Red Cross: While it can be stated that British Red Cross is voluntary
organization that is generally operating for rendering social services to people at free of
cost. For example: there are 17200 volunteers and 3400 staff that are offering services to
people. As per 2019 December, the organization have earned income around £244.9
million, among which £68.7M is through government grants and contracts. British Red
Cross is an voluntary firm so it has limited scale of operations and size in terms of
employees, market share as compared to public and private firm (Dwyer and Hopwood,
2019). The objectives of company is delivering necessary support to people with no
motivate to earn high profitability.
Therefore, all these are major difference between several firms that are operating in
external environment of United Kingdom.
Critical analysis of complexities of different types of business structure and their
interrelationship with different functions
Company must have strong relationship with all its function so that they can be easily
completed without much wastage of time and better customer's satisfaction. Human resources,
operations, research and development and finance are various functions that are being performed
by the John Lewis while smoothly running its business in retail sector of UK (Boyd and et.al.,
2017). The way complexities of different type of business structures and their interrelationship
with different functions can be illustrated as follows:

 National Health Service: It is firm that has opted division organization structure in
which each division perform all the different functions such as human resource,
operations and other. Company have make use of divisional structure on the basis of its
geographical location or area at which they operate that helps in interrelating all functions
in effective manner (Tura and et.al., 2019). Divisional structure has helped in integrating
all function into particular division thereby yielding maximum benefits to National
Health Service.
 The British Red Cross: The company have opted hierarchy organization structure in
which each employee are informed about the task and responsibilities that they need to be
performed so that end objectives can be achieved. The information flows from top to
bottom in the firm, thus the subordinate has to follow the order made by the senior while
performing its task and responsibilities. So the hierarchy structures is related to different
functions as each employee are aware about their function and duties by senior authority
for effective achievements of end goals.
 John Lewis: On the other hand it can be stated that John Lewis have functional
organization structures as each function is performed by particular department. On the
basis of function John lewis has coordinated all activities so that company can earn and
enjoy huge profitability in external environment. Likewise human resource department
manage the employees of firm, finance department manage all financial function of
company. Thus, it helps in segregating specialized function areas like human, technology
and marketing (Grover and et.al., 2018).
Analysis of the way structure, size and scope of three organisation are linked to their businesses
objective
All the company such as National Health Service, John Lewis and The British Red Cross
have different organizational structure, size and scope that are directly linked to the company
objectives. So the way they are related to business objectives can be explained in detailed as
follows:
The National Health Service have division organization structure thus various functions
is managed and completed by each division so that qualitative services can be rendered to the
patients. Moreover, it has large scale of operations and deliver range of services to customer's

that has helped in building and retaining strong brand image of enterprise in health and social
care (Tajudeen, Jaafar and Ainin, 2018).
On the other hand it has been analysed, that British Red Cross is social enterprise that
have limited scale of operations and number of employees that are working for delivery of social
services to people. Furthermore, it has hierarchy organization structures that has helped in
integrating range of employees working in firm to work together as team for achievements of
end objectives. Thereby it has helped in maintaining integrating and coordination between
individual to complete the task effectively.
John Lewis is company that have also large scale of operations in retail sector of UK that
emphasis on offering better products and services to customer's so that their wants can be
fulfilled in effective manner. So, it has make use of functional organization structures that has
helped in completing all function in quickest and easy manner thereby helped company in
gaining competitive advantages in external environment (Krotov, 2017).
Advantages and disadvantages of interrelationship between organisation functions and their
impact on organisation structure
From the above analysis it can be stated that department have strong interrelationship
with other organisation function that lead in effective operations of businesses. Likewise, the
advantage is that it helps in making coordination between employees working within different
department that are well qualified. In additional to this it contributes in avoiding duplication of
work as each work is completed according to functions of firm. Thus, it leads in specialization
through focusing on more effectively work in limited time frame.
While it can be stated that there are some disadvantages of interrelationship between
organisation functions such as the project are managed by multiple functional manager. That
resulted in not providing appropriate services to customer's. In addition, to this it leads in
increasing the chance of conflict between individuals which negatively impact on growth and
development of firm. Therefore, it can be interpreted that interrelationship between organization
functions results in negative impact on structures because function divide the work into
department that are depended on each other for completion of task (Richards and et.al., 2019.).
Thereby, because department are not accomplishing its function entire businesses has to suffer
that resulted in barriers in effective achievements of company goals.

CONCLUSION
From the above report it can be concluded that the private, public and voluntary are three
different organization working in environment with different purpose, scope and objectives.
Moreover, it has been identified that there has been strong interrelationship between several
departments or functions that helped in making customer's happy and satisfied to maximum
extend. Therefore, it can be summarized that better coordination between activities has helped
company in achieving their respective goals.
TASK- 2 Covered in PPT

Political factors: Moreover, Covid-19 pandemic has lead in bringing lot of uncertainty and
changes in foreign trades such as restriction has been implied on import and export of company.
Therefore, such trade barriers, restriction and brexit has resulted in decreasing overall
profitability and market share of firm in retail sector of UK.
Economic factors: Likewise, people are less likely to prefer products and services that are
available at high prices as they do not have sufficient income to afford the same. Thereby, John
Lewis in order to continue its business operations for longer time frame has focused on providing
products at minimum price possible. Thus, it has helped in making individuals happy and
satisfied as they are able to get maximum value at minimum price.

Social factor: In addition to this, it has more focused on offering differentiate and more unique
products to people so that they can be happy and satisfied and company can enjoy competitive
advantages. Thereby, John Lewis through effectively understanding customer's wants, preference
is able to attract and retained maximum number of individuals in the firm.
Technological factor: Social media has been used by firm to generate awareness about the
company among maximum number of people so that they are motivated to be part of
organization. Along with it, the firm has make use of e-mail marketing to connect with range of
customer's so that higher sales volume and profitability can be enjoyed by the company. Thus,
technological factor has provided opportunities to enterprise to enhance its market share in retail
sector of UK.

Environment factor: So, firm in order to retain its positioning has taken care of environment,
making the best use of resources that has helped in delivering maximum value to customer's in
minimum cost. At the same time it has emphasized on providing proper training and
development to employees related to the way work need to be performed. That has helped in
reducing the amount of wastage of resources thereby delivering valuable services to customer's.
Legal factors: Employment law, health and safety law and others has been followed by John
Lewis while operating its function that has resulted in maximum benefits. Therefore, all laws
follow by company has helped in its effective operation in retail sector of UK.

Weaknesses: While high price charged by John lewis thus due to economic slowdown people
are less ready to make purchase of products at high price.
Environment factor

Strength: It has focus on fulfilling customer's wants thereby undertake CSR activities or making
best use of available resources for benefits of society.
Weaknesses: Company is unable to make optimum use of resources or causing harm to external
environment.

REFERENCES
Books and journals
Boyd, B and et.al., 2017. Hybrid organizations: New business models for environmental
leadership. Routledge.
Dwyer, J. and Hopwood, N., 2019. The business communication handbook. Cengage AU.
Grover, V and et.al., 2018. Creating strategic business value from big data analytics: A research
framework. Journal of Management Information Systems, 35(2). pp.388-423.
Krotov, V., 2017. The Internet of Things and new business opportunities. Business
Horizons, 60(6). pp.831-841.
Metallo, C and et.al., 2018. Understanding business model in the Internet of Things
industry. Technological Forecasting and Social Change, 136. pp.298-306.
Richards, G and et.al., 2019. Business intelligence effectiveness and corporate performance
management: an empirical analysis. Journal of Computer Information Systems, 59(2).
pp.188-196.
Schoemaker, P .J ., Heaton, S. and Teece, D., 2018. Innovation, dynamic capabilities, and
leadership. California Management Review, 61(1). pp.15-42.
Tajudeen, F. P., Jaafar, N. I. and Ainin, S., 2018. Understanding the impact of social media usage
among organizations. Information & Management, 55(3). pp.308-321.
Tura, N and et.al., 2019. Unlocking circular business: A framework of barriers and
drivers. Journal of cleaner production, 212. pp.90-98.