Business and The Business Environment

Unit – 1
Business
And The
Business
Environment

Table of Contents
INTRODUCTION......................................................................................................................3
PART ONE................................................................................................................................3
TASK 1......................................................................................................................................3
P1. Elaborate public, private and voluntary sector with their purpose and legal structure....3
P2. Examine the size and scope of these different types of organisations.............................5
TASK 2......................................................................................................................................8
P3. Identify the relationship between various functional units of business within the
organisation............................................................................................................................8
PART TWO.............................................................................................................................10
TASK 3....................................................................................................................................10
P4. Determine the positive and negative impact of external macro-environmental factors
upon business activities........................................................................................................10
TASK 4....................................................................................................................................11
P5. Analyse intrinsic and extrinsic environment of business with its strength and weakness
..............................................................................................................................................11
P6. Describe the strength and weakness for external macro factors of business.................13
CONCLUSION........................................................................................................................15
REFERENCES.........................................................................................................................16

INTRODUCTION
The ability of owners and managers within a business for developing innovative idea to meet
the wishes and requirements of potential customers for providing them high level of satisfaction is
called as business. The combination of internal and external surroundings of an administration is
termed as business environment. This project is based upon TESCO as British multinational
merchandise retailer that is headquartered in Welwyn Garden City, Hertfordshire, England. This
project elaborates public sector with NHS organisation as being publically funded healthcare system
of United States (Ahsan and van Wyk, 2018). The private sector through TESCO and voluntary sector
by Oxfam is a major non-profit group with its purpose, legal structure and example. It further
examines the size and scope of micro, medium and large enterprises. This project identifies the
structure being adopted by company with its relationship between various functional units of business.
Additionally, it analyse the positive and negative impact of external factors with the SWOT analysis
for two organisations. This project also describes the power and weak spot of worldwide ecological
factors for business to increase opportunities for minimising pressure.
PART ONE
TASK 1
P1. Elaborate public, private and voluntary sector with their purpose and legal
structure
Business refers as the process through which managers of an organisation aims to develop
strategic decision-making procedure for executing their plan effectively with the motive to achieve
success.
Types of Business:- There are different types of business sectors which have been explained
as under:-
(A) Private Sector:-. This is defined as privately owned business that does not involves the
policies and procedures of government. It consists of sole proprietorship, partnership, small
and medium-sized businesses. Some of the organisations available in private sector are Swire,
Pentland Group, Dyson, JCB, TESCO, Morrisons, etc. From the prescribed companies, the
TESCO have been selected as British multinational groceries and general merchandise retail
organisation that is headquartered in Welwyn at United Kingdom (Bocken, Rana and Short,
2016).
 Purpose:- The main purpose for managers of TESCO is to create value for customers
by delivering qualitative good and services that leads to earn their support and

loyalty. It is most important for TESCO as to deliver goods and services at high
quality which encourage customers to purchase more of their products in order to
gain high contentment.
 Legal Structure:- TESCO has flat hierarchical structure and opts to pursue Strategic
Business Unit (SBU) by increasing its degree of competitiveness in global market.
(i) Sole Trader:- This refers as the enterprise with one entrepreneur who makes
decision in planning for manufacturing specialised products to attract large number of
customers. The TESCO is wholly owned by its key people as being Chairman of
company is John Allan; Chief Executive Officers are Dave Lewis and Ken Murphy.
Example:- Coca-Cola.
(ii) Partnership:- It is described as the business with two or more than two
entrepreneurs collectively perform their actions by sharing assets, liabilities and
profitability ratios. Example:- B&M Retail.
(c) Co-operation:- It is referred as the process through which managers of TESCO
aims to build good relations among workforce by collaboration with each other that
leads to share views and information. It also energizes workers to complete their task
at certain specified duration with the motive to attain personal and organisational
goals.
(B) Public Sector:- This division includes the policies and procedures of United Kingdom for
operating their business as per the instructions of government. It consists of military and law
enforcement, infrastructure (roads, bridges, tunnels, water supply, electric grids, etc.), public
education and healthcare (Doppelt, 2017). The organisations of United Kingdom which
involves in public sector are Crown Commercial Service, UK Statistics Authority, National
Cyber Security Center, IMF, NHS, BBC, British Army, etc. From the above mentioned
companies, the National Health Service (NHS) has been selected as an organisation which
performs its actions in taking precautionary steps for healthcare through preventing patients
from the disease of Corona Virus.
 Purpose:- The main purpose of NHS is to cure patients as being able to access
advanced technologies with its updating vaccines that leads to treat persons
effectively. The NHS further aims to utilise technology effectively for proper
utilisation of scarce resources that result in goal accomplishment at certain period.
 Legal Structure:- It is essential for public organisation to follow the rules and
regulations imposed by government of United Kingdom. Managers of NHS mainly
aim to supply more services rather than increasing profits.
(i) Local Government:- It emphasize managers of NHS to focus on providing social
welfare by creating job opportunities for various unemployed workers.