Business and Business Environment: Types of Organizations and Interrelationships

This report discusses the types of organizations in the business environment, including private, public, and voluntary organizations. It also explores the interrelationships between different functions within an organization. Additionally, it analyzes the impact of macro environment factors on businesses. The case study of Dyson is used to illustrate these concepts.

UNIT 1
BUSINESS AND BUSINESS
ENVIRONMENT

INTRODUCTION
Business environment defines the addition of all the collections that is related to the
external and internal environment which includes customers, suppliers, government, employees,
management, supply and demand etc. To follow the business environment it is very helpful for
all the organizations because it helps in meeting the expectations of the customers and enhances
the revenues of the firms. This report includes the type of various business ventures with their
size, scope and legal structure and it also includes the interrelationship between the organizations
functions that helps in attaining the objectives and profits and also manage the formation of the
company so that they can sustain in the market for a longer episode of time. Further it includes
the affirmative and pessimistic impact of macro environment on the particular business and its
operations. It also helps in showing to recognize power and weaknesses of the firm and at last
interrelated strength and weaknesses with the peripheral macro factors. It helps in earning more
profits and also longer sustainability of company(Belás and et. al., 2015).
LO1
P1
Private organisation
It defines to that category of organizations with the intention of is controlled and directed
by the individual’s human being and the group of individuals that are constituted under the
following category i.e. sole proprietorship, company and the partnership firm. These types of
business venture are work for earning more profits by proving the satisfied products and services
to the customers. The best example is Dyson that deals in the household appliances(Papilaya,
Soisa and Akib, 2015).
 Purpose – The chief intention of this kind of organisation is to earn high revenues by
selling their offerings to the customers by satisfying their needs and demands. They
always try to create unique offerings to attract people. As per like Dyson they always
focus on their products uniqueness and modifications so that they get large base of
customers and earns a profits.
 Legal structure

o Sole proprietorship – This legal structure defines that only an individual can
control and formulate decisions as a sole authority is called sole proprietorship. In
this they contain less implications of legal and take all the risk for profit earning.
Example- carpenter, beauty salon etc.
o Partnership – It is regulated by more than two person or two persons so that
organisation can operate in an effective way. It is develop by some rules and
regulations that include liability and revenues sharing.
o Company – It can be included two terms i.e. public sector and private sector.
Company that generate funds from the common public is called public sector and
if the funds are invested on private basis than it is called private company. They
both work for profit earning but in this liabilities are distributed among the
various shareholders. Dyson is the privately hold company that work fort earning
profits.
Public organisation
This form of organisation is work under the supervision of the government body so that
they can provide the benefits to the societies are referring to public organizations. The finest
model of the public sector organisation is crown commercial services(Prajogo, 2016).
 Purpose – The core intention of the public sector organisation is that it is supported by
the government because it helps the society for people’s welfares and from this they can
earn profits and revenues. in this crown commercial services is liable for managing the
common goods and services in the ways of saving the taxpayers by procuring the
centralizing requirements.
 Legal structure
o Local – This sector is accountable for the local society welfare and for this they
follow the order of the central government.
o State – This structure is accountable for the state that delegated under the central
government.

o Central – It is the high power authority that can control all the state and local
government for the welfare of the society and the country. crown commercial
services are under the central authority.
Voluntary organisation
This type of organisation is actively serving the society for controlling the various types
of activity related to saving the society and the people. In this Cancer research is a charitable
trust that provides help related to money and research campaign for the cancer patients.
 Purpose – The main use of this type of organisation is to enrich the people of society in
this cancer research works for reducing the number of patients that is related to cancer
deaths(Dahles and Susilowati, 2015).
 Legal structure
o Trusts – It refers to that legal structure that is accountable and responsible for
managing and maintaining the funds for the welfare of the society such as provide
help to the cancer patients with the help of money and other research campaign.
o Unincorporated associations- This type of structure is formed to fulfills the
objectives of the societies. in this people are work as per their mutual interest so
that they can solve the issues related to the people of societies.
Comparison between profit, not for profit and non governmental organisation
Basis Profit organizations Not for profits
organizations
Non governmental
organizations
Meaning It defines that
business venture
which is working for
earning profits in lieu
of providing services
and products to the
customers. In this to
get the ownership
shareholders can
This style of
entreprise is not
working for the
profits. in this they
collect funds from the
investors and also
they maintain the
transparency within
the firm so that people
This type of firm is
working not under the
government
supervision but they
are privately held or
include clubs. In this
people are working
with volunteer nature

purchase the shares
and follow legal rules
and regulations so that
can earn more and
more profits.
can trust on
them(Kasemsap,
2018).
for welfare of society.
Scope This type is working
for earning the
revenues on the large
scale.
These are working for
providing the benefit
of the community and
solve the issues
related to the society.
This includes the
larger scope related to
success of the society
without the help of
government.
P2
Dyson
Dyson is one of the privately held British companies that deals in the appliances of the
household and sold it to the customers for earning the higher profits and revenues. it shows the
largest revenues in household appliances in the market of the UK(Bitkowska, 2015).
Purpose of Dyson- The major reason of Dyson is to enhance the sale of the electrical household
appliances by inspiring of using better technology for this hiring the best engineering so that they
can reduce the harmful emissions in the making of products and attracts the large base of
customers.
Goods and services offered – It includes the variety of goods that is offered by the company to
their customers such as air purifiers, heaters, bladeless fans, vacuum cleaners, hand dryers etc.
and the Dyson also famous for producing motors for earning high profits by attracting large
customers.
Profit and market share – Dyson working with the 12000 employees within the organisation by
covering 50% of the market in UK with a net income of £ 1.1 billion and revenues of £4.4
billions.

Scope and size – The Company are working for large scope and working on large size in the
electrical household appliances, where they attracts the large base of customers and enjoys more
profits in UK.
Crown commercial services
It is an executive agency that is governed by the cabinet office of UK government. It is a
fund trading organisation that is managing the common products and services by increasing the
saving of the taxpayers. It can helps in leading the policies on the government accounts(Stott,
Stone and Fae, 2016).
Purpose of CCS- The main purpose of the CCS is to maximize the benefits of the central
government and the people of society by providing the solutions related to common products and
services of the people in UK.
Size of market- As Crown commercial service provide the wide range of services to the
customers including benefits related to taxpaying, healthcare sectors, schools and academic etc.
Cancer research fund
It refers to that firm which is spreading awareness related to the cancer patients. they are
working for eliminating the death ratio of the cancer. And they raise funds for the cancer victims
so that they cannot face more issues related to cancer(Aydiner and et. al., 2019).
Purpose – The main purpose of the cancer research is to provide the benefits to the cancer
victims by monitor the patients through research.
Size and structures- In this organization there are approx 40000 volunteers are working and
3000 number of employees are work under this organization with the earning of welfare of
society.
Differences between Micro, small and medium size enterprise
Basis Micro size venture Small size enterprise Medium size
enterprise
Concepts It refers to that It is that organisation It contains more

organisation that is
work for limited
resources and earning
more profits on a
small scale(Erasmus,
Strydom and
Rudansky-Kloppers,
2016).
in these profits is
earning for feeding
their family members
and they are almost
similar to micro
business.
assets and resources
on the basis of which
employees are
working for earning
revenues.
Size and scope It includes less than
10 employees and
they are
geographically
restricted to the local
area.
It involves 50 workers
with the state
presence rather than
global presence.
It includes 250
employees by doing
their operations in
states and nearby
nations.
LO2
P3
Organisational structure
It defines the system that creates an outline for directing the various activities in a
systematic order for achieving the overall goals of a business firm. This structure can includes
various types of roles, responsibilities and rules that can flow between the various levels of the
business firm because it helps in showing the flow of information in the different departments of
the company. some of the various interrelation of organisation function that helps in
accomplishing the overall objectives by ther use of organisation structure.
 Functional organisation structure- This type of structure are very common type of
structure that shows the organisation can make the group of the employees as per the
skills and knowledge of the workers so that task can be accomplish as per the set goals
and regulations. It shows the clear picture of the various level of the organization because
it helps in achieving the organisational goals and earning high amounts of the profits.

 Divisional organizational structure – It refers to an organizational structure that shows
how an organisation can divide the work into the various groups of people so that task
can be achieved in a specified way. In this all the divisions can be utilized all the
resources to support the product line and maintains the work as per the divisions related
to the finance, research, marketing and technical departments. In case of Dyson the
manager can follow this type of organisational structure so that they can achieve their
overall goals and earns a high amount of profits and longer sustainability in the
marketplace. In this structure firm can divide the various task as per the specialization so
that company may enjoy smooth working condition and also maintains the healthy
relations between the employees(Lu and et. al., 2015).
Interrelationship between the organisational functions
 Marketing and research and development – Both the functional section is closely
linked to one another in this marketing department can promote and communicate with
the customers to enhance the sales of the company whereas the R&D department focus
on providing the knowledge to the marketing department about the effective promotional
tool and demand of customers so that marketing manager can promote and creator
awareness in the mind of the customers. This helps in smooth accomplishing the task and
earns a high market share. In case of Dyson this powerful combination helps the firm to
make out effective strategy to stay in the competitive market and also retain the
customers for a longer period of time.
 Production and finance – In interrelation helps in generating the brand image in the
market because in this production department produce and manufactures the goods and

services and make new and modifying products so that they can attracts the large base of
customers and earns a high returns. in this finance department can provides the budget
and managing al the cash flow so that generating funds is not tough. In case of Dyson
their finance manager can provide the budget as per the requirement of accomplishing the
task to the production department so that wastage can be removed. Effective
communication helps in generating ore funds and minimizes the waste(Eruemegbe,
2015).
LO3
P4
Macro environment
It refers to that environment that existing in the whole economy of the country rather than
a particular area or sector. It includes various terms like GDP, inflation, monetary policy,
employment; fiscal policy etc. in context of Dyson manager can evaluate the macro environment
by using effective tool i.e. PESTLE so that they can examine the substance of all the factors on
the operations of the business hat can be shown below(Gavurova and et. al., 2017).
 Political factor – This factor of macro environment may affect the interference of the
government on the operations of the business that includes political condition, tax rate,
imposed duty etc. that will be affected the Dyson Company in a following ways.
o Strength – Due to decline in the tax rate in UK Dyson can enjoy the high sales
due to large number of conditions as there people are also spend because of stable
political condition. Due to reduction in tax Rate Company can lowering the price
of goods and services.
o Weaknesses – Because of enhancing the price in the import duty Dyson can buy
the raw material on high cost due to this there overall operating cost ay impact
negatively and they charge high price for their goods and services.
 Economic factor- It consist of the various factor that may consider in the economy of the
country i.e. GDP, purchasing power of people etc. In case of Dyson it may be affected in
positive and negative manner.

o Strength - As Dyson is one of the privately held company can deals in various
countries with their attractive household appliances so it is the opportunity of the
firm to expand their business in some more countries so that they can earn more
profits and enlarge their economy of country.
o Weaknesses- This factor negatively affect the Dyson operations because of high
wage rate of the employee’s overall operating cost may be negatively affected.
 Social factor – It is associated with the need, demand and preferences of the customers in
the society of UK.
o Strength- In the fast growing world customer is expecting the new and modern
technology that can solve their varieties of problems in this Dyson can be the
leader of the high definition technology electrical household appliances.
o Weaknesses- Because of emerging needs of the customers about the high
definition use of technology may impact the operating cost of the
Dyson(Calabrese and et. al., 2018).
 Technological factor – It includes all the factors that is related to the advancement of the
technology in making the products ad supplying the goods to the consumers.
o Strength- In case of Dyson it may use the effective technology in their household
appliance that easy the life of the people when they are work in the home.
o Weaknesses- The major disadvantage of the Dyson is the use of advanced
technology that will impact the overall cost of the company and expenses.
 Legal factor- It includes the laws ands regulations related to the legal rights that is based
on employee’s welfare.
o Strength- In Dyson manager can use and follow various laws that helps in
satisfying the employees from the working environment so that they can satisfy
the customers.
o Weaknesses- If manager of Dyson cannot follow it successfully than it may face
failure of the company and employee turnover(Calabrese and et. al., 2018).
 Environmental factor- It involves the environmental laws that are imposed by
government for welfare of nature and people.
o Strength- In case of Dyson may follow proper rules related to saving the
environment for hazardous so that they can sustain in market for longer term.

o Weaknesses –Using and following proper rule related to environment impact the
liability of the firm by enhancing the overall cost.
LO4
P5
SWOT- It is an essential factor because it helps the Dyson to know the capability and ability of
the company to perform their task and enhance their profits and revenues. In this SWOT analysis
helps in examine the strength and weaknesses of the business that can be shown below(Eling and
Schaper, 2017).
Strength Weaknesses
 Dyson is one of the largest companies
that design the high definition quality
products related to household
appliances and to maintains their image
they timely research the quality they
offers to their customers.
 The main weakness is that Dyson offers
high price from their customers as from
their competitors.
 Another drawback is that they may
involve in various controversy due to
this they may face loss and decrease the
brand image.
Opportunities Threats
 Opportunity for Dyson is to expand
their business by enhancing their
production in the various countries and
also in online media .
 The main threat of the Dyson is to face
the large number of competitors in the
marketplace and they offers the
products in the low price may affected
the profits of the company.
SWOT analysis of Samsung
Strength Weaknesses
 The main strength of the Samsung is
that it is most successful electronics
manufacturer business firm in the world
that manufactures television sets,
 The major weakness of the firm is that
they mainly depend on the consumer
market due to which their price of the
goods may fluctuates and they contains

mobile phones etc. limited potential growth.
Opportunities Threats
 The major opportunity of the firm is the
more demands of the smart phones and
tablets in today’s world that helps in
increasing their profits.
 The major threats of the Samsung are
the large number of competitors in the
market for example Dyson, Apple etc.
P6
Political
 Strength: In this because of dismissal in the rate of tax Dyson may enjoy large sales and
expansion.
 Weaknesses: Due to high import duty it may affect the high cost of operations that is the
major weakness of the firm.
Economical
 Strength: Because of high spending power of consumers and the use of high definition
technology they may enjoy large profits.
 Weaknesses: In this increase in the rate related to wages of employees may impact the
operating cost.
Social
 Strength: High population is the major advantage because it helps in enhancing the sales
of Dyson(Calabrese and et. al., 2018).
 Weaknesses: As use of advanced technology by the society people in their day to day
life helps in enhancing the investing in the research that may negatively affects the cost.
Technological
 Strength: High demand of using technology may increase the profits of the Dyson
company.

 Weaknesses: Use of high definition advanced technology may impact the financial
resourced of the firm.
Legal
 Strength: Follow proper rules related to employment laws helps in enhancing the
productivity in the Dyson.
 Weaknesses: Not following the proper rules and regulation related to employment
decrease the performance of employees.
Environmental
 Strength: In this Dyson may properly follows the laws relating to environment by not
harming the nature helps in enhancing the ravenous.
 Weaknesses: Apply the tools related to environmental safety may enhance the liability of
firm and due to this cost price of products are also high.
CONCLUSION
To the exceeding mentioned report it is to be concluded that business and business
environment is a prominent term to stay in the market and gaining the competitive advantage in
the market. It helps the organization to serve their customers as per their needs and in this
interrelationship between the various organisation functions helps in attaining the goals of the
business firm. This report also helps in ornamental the knowledge related to the various types of
organisation with their size and scope and the legal structure. It is very essential to analyse the
internal and external environment so it is easy to identify the various factors and their impact on
the operations of the firms. Both these factors are best understood by the use of SWOT and
PESTLE analysis.