Understanding the Business Environment in Various Organisations

Understanding the
Business Environment in
Various Organisations

Table of Contents
INTRODUCTION...........................................................................................................................1
Part 1................................................................................................................................................1
LO 1.................................................................................................................................................1
P1) Different types and purposes of organisations; public, private and voluntary sectors and
legal structures........................................................................................................................1
P2) The size and scope of a range of different types of organisations...................................3
LO 2.................................................................................................................................................6
P3) Relationship between different organisational functions and link to organisational
objectives and structure..........................................................................................................6
Part 2................................................................................................................................................8
LO 3.................................................................................................................................................8
P4) Positive and negative impacts the macro environment....................................................9
LO 4...............................................................................................................................................13
P5) Internal and external analysis of specific organisations................................................13
P6) Strengths and weaknesses interrelate with external macro factors................................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Business environment is a very vast concept that comprises of analysis and evaluation of
all the internal and external factors of a firm that have a direct or indirect impact on its business
operations and decision making (Amato, 2021). Current project is based on the analysis of
business environment of UK thus, 3 different type of organisation from business environment of
UK has been selected which comprises of The National Health Service (NHS) which is a UK
government organisation, second firm is The British Red Cross that is a well know UK registered
charity organisation and the last one is John Lewis which a private company operating as a high-
end department stores. Further, this report consists of discussion about the different types of
organisation together with their size and legal structure. Beside this, analysis of relationship
between organisational structure and function is also made. Along with this use of SWOT and
PESTEL analysis is also comprises in current study to evaluate the positive and negative impact
of the business environment on the firm’s operations.
Part 1
LO 1
P1) Different types and purposes of organisations; public, private and voluntary sectors and legal
structures
A business can be defined as an organisation or group of people or other enterprising entity
which are tend to be engaged in any commercial, industrial or professional form of activities.
Thus, business basically comprises of an organised efforts and coordinated activities to produce
and sell some specific goods and services. The different types and purpose of organisations
present within the business environment of UK are provided as discussed as below:
Public sector
These are the organisation which are basically owned and controlled by the authorities of
the government. Beside this, the main purpose of public sector organisation is to provide and
facilitate all the forms of public facility to the society and citizen of a nation which consists of
services of police, army, education, hospitals, public transportation and others basic services of
citizens.
Legal structure- The legal structure of public sector organisations are directly associated
and accountable to the government of nation and has to perform and work according the rules
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and policies set out by the government. Thus, the legal structure and operation of the public
sector firms is decided and completely finalised by the government or some other supreme
authority of the nations (Barlatier, Giannopoulou and Gryszkiewicz, 2021). Further, the public
sector has been categorised into three more types based on their legal structure and control which
is described and discussed as below:
 Central government- These are the firms which comes under the direct control and
jurisdiction of the supreme and central authority of the nation and all the activities and
function of these organisation are directly controlled and monitored by the central
government. Beside this, the funding and management of operations and business
purpose of these firms are also under the supervision of the central government.
 State government- These are the organisation that comes under the control of the state
government and their business activities and operations are being managed by the
government of some specific state in which the its major business operations and
headquarter is located and situated. Thus, the major business operation of a state owned
public company is limited to that specific state which have authority and power of
supervision along with meeting the financial needs and other resources (Best and et. al.,
2021).
 Local government- These are the companies which are nit under the supervision of
central or state government but their operations are control and managed by some local
authorities. Within UK, the local government public sector company is being operated
and managed by the Municipal corporation along with the supports of other local bodies.
Private Sector
These are the companies which are managed and owned by some private individual or
group of people. The main purpose and aim of the private company is to have maximisation of
profit by the way of satisfying and meeting the needs of customers.
Legal structure- Various legal laws and acts are applicable to the private sector
companies which states provisions for their incorporation and management of operations, within
in UK, companies act 2006 and partnership act 1890 are two major laws which defines the legal
structure of public sector companies. On the basis of legal composition and structure the,
organisation in private sector are further classified into these three types which are disused as
below:
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 Sole proprietorship- Under this form of legal structure, a private company is wholly
controlled and operated by a single individual in an independent private manner who is
having all the liability and responsibility of managing a firm. further, in UK the Sole
proprietor needs to get registered for a self-assessment along with filing the tax return of
the business operations every year as per the legal laws and provisions of the UK.
 Partnership- This form of private organisation basically consists of a group of two or
more individuals who are working in an association or agreement to achieve some
common goals. As per the provisions of the Partnership act, 1890 all the role and
responsibilities of the partners needs to be properly stated and written within the
partnership deed (The Partnership Act 1890 - General Partnerships, 2019).
 Private limited companies- These are mainly joint stock company where each of the
shareholder have a limited liability and are also tend to bound with the rules written
MOA and AOA as per the provision of company’s act, 2006 (What is the Companies Act
2006?, 2019).
Voluntary sector
These are the companies which are operating with the purpose of benefiting society and
aim at brining equality in the community by the way of supporting and enriching the vulnerable
group of the society. Thus, companies in voluntary sector mainly operates without having the
aim of earning profit and their main purpose is to support society to create a better world.
Legal structure- The voluntary sector has divided into below stated types based on its
legal structure (Legal Structures for Voluntary and Community Groups, 2019):
 Trusts- It is mainly a group of people who comes together as a trust with the purpose of
doing charity for wellbeing of society, the members of the trust are ruled and managed by
the trust deed and have to follow regulation provided in trustee act, 2021.
 Charitable company limited by guarantee- It comprises of a group of people who raises
funds in form of donations and charity to help the vulnerable group of the society and its
members are bound by the AOA and MOA of the company (Hamilton and Webster,
2018).
P2) The size and scope of a range of different types of organisations
On the basis of size, organisation are divided into three main categories which are provided
as below:
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