Business & the Business Environment

Business & the Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1 .................................................................................................................................................3
P1 Different types of organization...............................................................................................3
P2 Size and scope of organization...............................................................................................4
LO2..................................................................................................................................................6
P3 various function within organization......................................................................................6
LO3..................................................................................................................................................8
P4 Positive and negative impact of macro environment on company.........................................8
LO4..................................................................................................................................................9
P5 Analysis of internal and external factor of environment........................................................9
P6 Strength and weaknesses of company are related to macro environment............................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business is a commercial enterprise that has been established to offer products and
services to people living in the society. On the other-hand Business environment means all
internal and external factor that effect on functioning of company. In this report Marks and
Spencer company has been taken that operates in retail industry across various nation and
specialized in high quality clothing, food and home products. This report analysis different types,
scope and size of organizations. It explains interrelationship between various departments within
company and the way they are related to organisational structure of the firm. At last, this report
describes impact of business environment on Marks and Spencer functioning by using pestle,
porter and swot analysis tools that helps in formulation of strategies of the company.
LO1
P1 Different types of organization
Profit, not profit and non-government are different types of organisation that are
segmented on the basis of purpose and objectives of company in the industry. Thus, it can be
stated that there are different organization on basis of purpose and objectives of company that are
explained below:
Profit organisation: Most of the business primary operates its function to earn profit in the
market by selling products to the customers. Such company is objectives are to provide
qualitative services and products to customer’s thus maximum profit by satisfying needs of
customers beyond their expectancy (Joslin and Müller, 2016). For example: ASDA is a private
company in UK that operates it business to earn maximum profit by satisfying needs of
customers.
Non-profit organization: Purpose behind establishment of such organization is that to provide
social benefit to people living in the society. It main objectives is to serve the public by
providing useful product and service to them thus they are not established for earning profit.
Thus, they are set up as charitable institution that performs its function without motive to earn
profit. For examples: St John Ambulance is second most popular and 13 largest charity
organization that operates in UK to provides first aid and emergency medical facilities to people.
Non-government organization (NGO): Such firms perform its function independently of
government and the objectives of such companies is to provide social services to people
(Demircioglu, 2018). Thus, such firms operate its function not to earn profit and its purpose is to

serve the people living in the society. For example: Amnesty international is a non-government
organization that operates to protect human rights in United Kingdom.
Public company: Company that ownership is shared between shareholders of the company such
as management, boards of director and public that has invested money in the organisation. It can
share its securities such as equity and debt to public by trading it on capital markets (Stubbs,
2017). For Example: Marks and Spencer is a public company whose shares are owned by public
and its profits are shared among various shareholders. Its purpose is to manufacture products and
services that satisfy needs of customers effectively.
Private company: Such company that operates and owned under private ownership are known
as private company. ASDA is a private company that operates is business to maximum profit by
offering qualitative products and services at lower cost. It can issue share and have shareholders
but shares cannot be traded on public exchanges.
Voluntary company: It includes such companies that operate its function to provide social
benefits to people rather than earning profits. Charities are part of such organisation such as Non-
government companies that operate on small scales to provide social services to people living in
the society (Järvi, Almpanopoulou and Ritala, 2018). Save the children international is a
voluntary company that have spent 1,013to provide social benefits to customers.
Legal structures of different forms of business:
Sole traders: Such businesses that are owned by single individual or owner of company is
particular individual thus profit of the company is enjoyed by single person. Sole trader also
responsible for bearing all loses of the company and takes all crucial decision. Small enterprise
are owned and operated by sole traders.
Partnerships: Company that is operated and owned by number of people by agreement between
two or more people to share profit and losses equally. All partners take equal participation in
decision-making of the company thus helps in achievement of organisational goals. Small and
medium-sized organization is owned by number of people or such organization is run by
partners.
P2 Size and scope of organization
Organisation is further classified on the basis of size and scope of business in the
industry. The enterprises are classified into large, small, micro and medium-sized enterprise on