Business and Business Environments

Business and Business
Environments
1

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Explain different types of organisation along with its purpose and legal structure...............3
Size and Scope of different types of organisation.................................................................5
TASK2.............................................................................................................................................7
Determine the relationship between different functions of organisation and their link with
objectives and structure of organisation.................................................................................7
TASK 3 ...........................................................................................................................................8
Identify the positive and negative impact on the macro environment....................................8
TASK 4 .........................................................................................................................................10
Conduct the internal and external analysis of the organisation............................................10
Explain the inter-relation between internal and external factors..........................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
2

INTRODUCTION
Business Environment is the most crucial factor of any business. It helps in identifying
and understanding opportunities for business, analyse useful resources, assists in strategic
planning and improves the performance and profitability of the business (Aribawa, 2016). The
organisation taken for this report is ASDA Group Ltd. The company is functioning as one of the
large food retailer chain in United Kingdom and has included wide range of variety such as
housewares, music , videos and books. The company was established in year 1949 by Asquith
and Stockdale families in Yorkshire. Asda is leading retail brand in Britain and has now
expanded the business in living stores and petrol filling stations across the UK. The report covers
following topics that are different types of organisations along with its purpose and legal
structure, the size and scope of a range of different type of organisations, the interrelationship of
the various functions within the organisation, positive and negative impact of macro environment
on the functioning of organisation, impact of strengths and weaknesses on the organisation and
how these strengths and weaknesses relates to external macro factors.
TASK 1
Explain different types of organisation along with its purpose and legal structure.
Business refers to the changeable process of skills and resources according to the request
and requirements of customer's (Fleming, Lynch and Kelliher, 2016). Organisation is one of the
major operations of management where it helps in establishing authorities, responsibilities,
assigning task and dividing work among members. The types of organisations are as follow-
Private Sector Organisations
The private sector organisation is defined as the type of organisation which is establish
and function by individuals with the motive of earning profit and is not directed by government.
For example: ASDA is an private sector organisation founded by Asquith and Stockdale families
with the motive of earning profit.
Purpose
The purpose of ASDA is to become most trusted retailer in UK with motive of fulfilling
customer needs and satisfying them.
Product & Services
3

Company deals in food, clothing, petrol filling stations, home electronics, home wares,
health and beauty products. The company provides services such as car insurance, credit cards
and travel money bureaux (Gandhi, 2017).
The type of private sector organisations in UK
 Sole Traders- Sole trader refers to one person organisation who operates on their savings
and size of firm is usually small.
 Partnership- The organisation formed with the contribution of two or more people but
not more than 20 people refer to Partnership organisation.
 Private limited company- The company formed with limited liabilities and ownership is
equally divided among the formers.
Legal Structure
ASDA fall in the category of subsidiary company with the motive of becoming largest
and biggest company in retail sector in UK.
Public Sector Organisations
Public sector organisation refers to those organisations which are formed and run by
government where main motive is to provide benefit to the community. For example:
NHS( National Health Service) is organisation in UK which is operated by government for
providing medical and health care services to public (Lim, 2018).
Purpose
The purpose of NHS organisation is to focus on health and well-being of public with
improvement in tools and technology being used.
Product and Services
The organisation provide health and medical services and facilities to the people of UK.
The type of public sector Organisations in UK
 Public corporations and nationalised- It is a type of public sector organisation which
operates for the interest of public and funded by government.
 State services- These are public sector entity performing commercial activities for
government and are incorporated by government.
 Local Authority Undertakings- These are those organisations which are directly or
indirectly influenced by public authorities.
Legal Stricture
4