Business and Business Environment

Business and business
environment

INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
P1 Explain different types and purposes of organizations; public, private and voluntary sectors and
legal structures.........................................................................................................................................3
P2 Explain the size and scope of a range of different types of organizations...........................................4
M1 Analyze how the structure, size and scope of different organizations link to the business objectives
and product and services offered by the organization..............................................................................5
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure....................................................................................................6
M2 Analyze the advantages and disadvantages of interrelationships between organizational functions
and the impact that can have upon organizational structure.....................................................................8
D1 Provide a critical analysis of the complexities of different types of business structures and the
interrelationships of the different organizational functions......................................................................9
P4 Identify the positive and negative impacts the macro environment has upon business operations,
supported by specific examples.............................................................................................................10
M3 Apply appropriately the PESTLE model to support a detailed analysis of the macro environment
within an organization...........................................................................................................................11
P5 Conduct internal and external analysis of specific organizations in order to identify strengths and
weaknesses............................................................................................................................................11
P6 Explain how strengths and weaknesses interrelate with external macro factors...............................11
M4 Apply appropriately SWOT/TOWS analysis and justify how they influence decision making.......12
D2 Critically evaluates the impacts that both macro and micro factors have upon business objectives
and decision-making..............................................................................................................................13
CONCLUSION.........................................................................................................................................14
REFERNCES............................................................................................................................................15

INTRODUCTION
Business is a place where different individuals come together to take on a common
business process. These activities are directed towards achieving certain motives. These motives
can relate to profit generation or for charitable purposes (Aithal, 2016). This report is prepared
with the main motive of developing an overall understanding of business and its operations.
Furthermore, a business is operating in certain surroundings and factors of these surroundings are
impacting the environment in an intense manner. These factors may be internal or external as
well. In a market setup, there are different types of organizations, based on size, scope or type of
organizational structure. This report also focuses on furnishing knowledge about relationship of
business and its management with that of all other stakeholders for the organization. This report
also discusses about the interrelationship between external and internal environment factors and
how they can be used together so as to achieve organizational objectives (Shenkar, Luo and Chi,
2014). In this report, all above mentioned concepts are understood through taking real life
example of Tesco supermarket, which is a private company and well established in UK market.
In addition to this, to understand the concept of different organizational structure, examples of
department of transport as public company and transparent hands are taken as example of
nonprofit organization. Through these examples, attempt has been made to understand the impact
of external factors on business operations. These impacts can be categorized in both categories,
positive and negative impact as well. This assignment also explained the internal strengths and
weaknesses of the business and their interrelationship with the external macro factors in the
environment.
MAIN BODY
P1 Explain different types and purposes of organizations; public, private and voluntary sectors
and legal structures.
In a market setup, there are different kinds of business and individuals, before starting any
organization or business, there are various types of motives behind that idea (Ambler, Witzel and
Xi, 2016). This idea further leads to formation of different types of business structures and

organizational setup. There are basically three types of business forms which are differentiated
based on their legal structure and organizational motive. These three are explained below:
 Public sector organization: The main feature of these organizations is that these
organizations are being operated by state government (Apăvăloaie, 2014). The basic
motive of these organizations is to make possible the optimum utilization of resources on
mass basis and to provide essential public services to community at large level. In this
report, example taken for public sector organization is ESPO that is operating in UK. The
main vision of this organization is to provide high quality necessary goods and services to
community at large scale. The main element of this organization is that it believes in
providing one stop solution to people. Another supporting element in mission of this
organization is that any surplus or profits made by it goes back to public sector fund.
 Private sector organization: It is just opposite to public sector organization as it is
owned and operated by private individuals or a group of private individuals. The main
goal of these institutions is to earn maximum profit and that goes in pocket of owners and
not for any charitable purpose. Government has no or very less say in these organization,
they are just an eye that keeps a check on operations, so that organization do not get
involved in any illegal activity. Due to this less interaction of government, this sector is
also termed as citizen sector. JCB is basically a British multinational corporation which is
headquartered in London. The main business line of this company is manufacturing
equipment for various sectors like construction, agriculture, demolition and water
handling.
 Voluntary sector organization: These organizations are formed with the purpose of
ensuring enrichment of society. The primary objective of these institutions is to make a
social impact and not generate revenues or profits. It is an independent, flexible and
nonprofit institutions formed by people and for the people. They are working very
selflessly for the society and trying to get maximum welfare for them. Example of this
type of sector is Macmillan cancer support charity which is located in London. It is the
largest cancer society based in the place which attempts to provide financial support and
also healthcare to those who are suffering from this disease (Bah and Fang, 2015).