Unit 1: Business and the Business Environment

Unit 1: Business and
the Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 2............................................................................................................................................1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures......................................................................................................................1
P2 Explain the size and scope of a range of different types of organisations.............................4
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................5
CONCLUSION ...............................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Business environment is regarded as the integration of external as well as internal factors
which influence an organisation's operating situations. It involves competitors, suppliers,
government and many others (Babu, 2012). As per the scenario, the undertaken company for this
report is Mercedes-Benz which is a leading German international auto mobile marque as well as
a Daimler AG. Its headquarters is in Stuttgart, Barden- Wurttemberg. This report covers various
purposes and kinds of organisation, several legal structure into private sector, organisational
structure, business size and scope. Moreover, complexities of different types of business
structures and interrelationship of different organisational functions are also mentioned in this
report.
TASK 2
Explain different types and purposes of organisations; public, private and voluntary sectors and
legal structures.
Organisations are characterised into several kinds such as private, public and voluntary
that has different objectives, scope and many others. Mostly, these are developed through person
or group of individuals that are controlled through them. So, some kinds of organisations are
discussed below:
Public sector organisation: This is regarded as the business concern that can not be
controlled as well as managed through any specific person (Belás and et. al., 2015). It is mostly
governed by government that may be state or central. Within this, the chosen firm is NHS which
stands for National Health Services and situated into United Kingdom that facilitates health
services to general people. Purpose: The basic purpose of this particular sector is to provide assistance to one whose
income level is low as well as are not competent to afford fundamental services. For
example: NHS, which is facilitating services related to health issues to common people at
low price. Mainly, this forms of organisation can not able to concentrate upon enhancing
market share as they do not perform to gain profitability. It is so they are funded through
government and staffs hired upon permanent contact with high pay scale. Objective:The objectives of NHS is to develop the atmospheres for the patients and staff
in order to benefits them.
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 Stakeholder: Competitors, Customers and many more are the stakeholders of respective
organisation. Types:
◦ Statuary corporation: This is the kinds of company which is formed by acts of
parliaments or legislature of state. This is funded by government such as airlines and
many more (Cai and Yang, 2014).
◦ State Government: It is regarded as the traditional kind of firm which is a part of
government section. Like railway, telephone and many more.
Voluntary organisation: This is regarded as the non profitability organisation which
involves small and large entities like healthcare, educational and others. There are several
company such Oxfam, British heart foundation and many more. Herein, the selected company is
Oxfam which performs for developing the poor individuals. Purpose: The main purpose of this organisation is to aids that person which comes under
BPL as well as whose standard is not good. Such as the main purpose of Oxfam is to
develop long lasting solutions to poverty in justices. Objective: The voluntary organisation key objectives is to ensure individuals
development which do not has so much financial resources. The objective of Oxfam is to
concentrate upon advancement of living standards. Stakeholder: The Voluntary organisation involves both types of stakeholders involving
internal as well as external stakeholder (Hilton and Platt, 2013). The key stakeholders of
Oxfam are donation parties, general people and many more. Types:
◦ Unincorporated Association: It is regarded as the firm that is formed through aids of
agreement among group of individuals come together for many reasons then obtain
more profit.
◦ Trust: It is regarded as the firm which is formed to perform for fiduciary of trust and
agencies. This is owned by three types of structures such as bank, low association and
independent partnership.
Private organisation: This is regarded as that entities that are performed or controlled
through sole proprietors, owners and many others (Ji-fan Ren and et. al., 2017). The chosen
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private company here is Mercedes-Benzis which is the world leading global auto mobile
marque. Purpose: The private organisation such as Mercedes-Benz main purpose is to maximise
market sensitivity as well as enhance the additional value in effective manner into shorter
time duration. Objective: The main objective of private organisation is to render essential range of
products or services to clients for gaining huge amount of profitability. Such as the
Mercedes-Benz objectives is increase the smart brand's pioneering role into urban,
electric mobility. Legal Structure: Firms which are carrying out their within private sector are one whose
formal rights are possessed by entrepreneur and are also controlled by them only. This
vary from several firms. Within these, the regulations and rules are ascertained through
owner of firms. In respect of Mercedes-Benz, its legal structure is partnership.
 Stakeholder: Private organisation include a range of stakeholders as huge business
aspects. Such as the Mercedes-Benz includes both the stakeholder external and internal
as well. Its external stakeholders are clients, governments, suppliers and many more. The
internal stakeholders are staff, boards of directors, manager and many others. Types: Sole Proprietorship: The firms which render their services within this sector are
completely owned, managed as well as are obsessed by single person who is denoted by
term sole proprietor (Lenssen and et. al., 2013). They are entirely responsible for profit or
loss through which organisation goes. Partnership: It denotes the formal written agreement which occurs among two or more
individuals who are willing to work together for earning profits or having any other kind
of benefits. Here, profit as well as loss will be shared equally which denotes that they can
be handled in an appropriate manner.
 Company: The organisations which are carrying out their operations within this kind of
legal structure carry out their business operations with an aim for attaining more profit
and do not give their share to public (Savrul, Incekara and Sener, 2014).
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Explain the size and scope of a range of different types of organisations
The scope as well as size of range of different types of organisation are described
underneath:
Types of Organisation Scope Size
Public Organisation National health services aims
to brings some transformation
which works for challenges
and opportunities for
pharmacy profession. The
recent movements within
commissioning structure
focusing by combined care
which assists to improve
patients outcomes from
medicines.
NHS have several community,
hospital and fundamental care
that haves around 150, 000
doctors and 320, 000 nurses
and midwives that are
rendering to their patients (The
NHS Workforce in numbers,
2019).
Voluntary Organisation Oxfam can explore their
services within different
portion of world. This
performs with the partner
company as well as render free
services to individuals whose
financial background is not so
much strong or good.
Moreover, it determined for
changing that aids them in
mobilizing the power of
person against poverty.
The respective organisation
render its services to residents
of United Kingdom in order to
remove poverty and so on.
Also, it have about 20
independent charitable
company which performs for
country beneficiary in order to
develop nation poverty free.
They operates within around
94 nations and are responsible
for charitable practices, assets
and others.
Private Organisation The scope of Mercedes-Benz
is to expand their business in
Mercedes-Benz operates and
manufacturer their products in
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around whole world and sell
their products efficaciously
into competitive market. As it
performs into auto mobile
sector as well as plan to
explore its operations into
other industry through
manufacturing unique cars in
effectual way. This helps them
to increase their sales and
profit rapidly.
about 17 countries and
distribute it within whole
world. Also having offices into
93 location across the world.
Moreover, it has approx 145,
400 staff who perform for their
division.
Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
Organisational function is regarded as the core procedures or set of practices performed
into department or areas of firm. All organisations performs their task for accomplishing their
objectives which may vary firm to firm (Sodeyfi, 2016). Within Mercedes-Benz, the functions
involve marketing, human resource, operation, research and development and many others. The
relationship among their various functions that is linked towards its structures as well as
objectives are described underneath:
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Human resource management and marketing:
The HRM and marketing both organisational functions work together in order to attain
goals. As marketing manager assists to HR manager of Mercedes-Benz for hiring proficient
candidates for their entities in order to perform their task efficiently. Through using various tools
many persons can able to apply for several position as well as marketing function assists to find
the proficient one. Based on the organisational structure, the requirement of workforce is
ascertained by marketing division and HR department recruit the employees consequently.
R&D and marketing:
Generally both the functions are focused on acquiring knowledge regarding the needs of
consumers thereafter, both have to make their work more easier as well as results become highly
efficacious (Wetherly, 2014). The data provided by marketing manager assists manager of R&D
to do proper investigation for accomplishing the desired outcomes. Also, both has to work
together to obtain knowledge regarding the current trends and choice of customers for
maximising the profitability. Thus, Mercedes-Benz has to make decisions according the
information render by both manager for their products developments.
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Illustration 1: Organisational structure
(Source: Organisational structure. 2019)

Research and Development and Production Department: R&D department of
Mercedes-Benz is liable for carrying out market research through which needs of customers can
be addressed with respect to their understanding as well as behaviour. Basically, it is carried out
to analyse what customers expect from organisation. Furthermore, along with this, trends and
technologies which prevails within the market can be analysed so that they can adopt those and
attain a competitive edge within the marketplace. Apart from this, it (R&D) renders information
to production department related with requirements as well as needs of their probable customers.
This will lead Mercedes-Benz to deliver their services as per required standards by
accomplishing needs of their customers.
The organisational structure, size and scope are aligned with overall business objectives
and the product and service development. As respective private organisation is large in size as
well as having huge scope to expand their business in all over the world. Moreover, its
organisational structure is Functional as in this staff are distributed within framework according
to its department function as well as it perform as per this. All these are set up for attaining their
business objectives in effective and efficacious way.
According to the (Yoon, 2012), Organisational structure are the manner by which several
kinds of firms are developed. Different functions are performed in each forms of organisation
with different structure. But the nature of that structures as well as its interrelations are
distinguish from each other that creates its entities and operative implication important . As
various organisational have different organisational structure such as hierarchy, flat, divisional
and many others which have various complexities like miscommunication, improper
understanding whom to report and many others. Moreover, all the organisational function are
interrelated with others as this help organisation to perform the appropriate research, do effective
marketing, recruit proficient candidates and many others.
CONCLUSION
As per the above report, it has been concluded that business environment is plays vital
role within organisation as they get knowledge about the external and internal factors which
influence an organisation's operating situations. Moreover, there are various types of
organisation such as private, voluntary and public. All those have several objectives, scope, size,
purpose and many others. In addition to this, organisations performs their task for accomplishing
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their objectives which may vary firm to firm. There are several organisational functions such as
human resource management, operations, finance, marketing, research and development and
many others. All are linked with one another for gaining more profitability as well as attaining
organisational objectives in effective and effectual way.
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REFERENCES
Books and Journals
Babu, K. V. S. N., 2012. Business intelligence: Concepts, components, techniques and
benefits. Components, Techniques and Benefits (September 22, 2012).
Belás, J. and et. al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
Cai, S. and Yang, Z., 2014. On the relationship between business environment and competitive
priorities: The role of performance frontiers. International Journal of Production
Economics. 151. pp.131-145.
Hilton, R. W. and Platt, D. E., 2013. Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.
Ji-fan Ren, S. and et. al., 2017. Modelling quality dynamics, business value and firm
performance in a big data analytics environment. International Journal of Production
Research. 55(17). pp.5011-5026.
Lenssen, G. and et. al., 2013. A value mapping tool for sustainable business
modelling. Corporate Governance.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150.
pp.35-45.
Sodeyfi, S., 2016. Review of literature on the nexus of financial leverage, product quality, &
business conditions. Journal of Economic & Management Perspectives. 10(2). pp.146-
150.
Wetherly, P., 2014. The business environment: themes and issues in a globalizing world. Oxford
University Press.
Yoon, J., 2012. Detecting weak signals for long-term business opportunities using text mining of
Web news. Expert Systems with Applications. 39(16). pp.12543-12550.
Online
The NHS Workforce in numbers. 2019. [Online]. Available
Through<https://www.nuffieldtrust.org.uk/resource/the-nhs-workforce-in-numbers>
Organisational structure. 2019. [Online]. Available
Through<http://atessaykdxp.corksuckers.info/organisation-structure-of-mercedes-benz-
nozyfebur5297.html>
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