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.
1

 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
2