Business and Business Environment

Unit 1: Business and
Business Environment

INTRODUCTION
Business environment constitutes the surroundings of an organisation together with the
intrinsic and extrinsic elements which place an impact over the operations of company. The
elements which come under the business environment are customer, vendor, employees, demand,
supply, laws, politics and many more (Toedt, 2014). It is important for a firm to constantly take
into account such factors in a bid to make sure that there are no adversities for the company in
future course of time.
The project is divided into two sections. The first section consists of an overview of
various organisation types together with their size as well as scope. Further, it includes the
different types of business structures along with the relation of functions to objective and mission
of corporation. It is based on 3 organisations, namely, NHS, TESCO and Oxfam. The second
section takes into account the influence of macro and micro factors over the decision making and
objectives of corporation. It includes PESTLE and SWOT analysis. Also, the interrelation of
strengths and weaknesses with macro environmental elements is covered in the assignment. This
section is based on 2 companies, namely, Marks & Spencer and TESCO.
PART 1
P1 Public, private and voluntary sectors and legal structures
There are various types of organisations that operate as a part of an economy. These are
classified as public, private and voluntary. A brief description of these entities is given
underneath:-
Public Sector Organisations
These consist of the business entities which are owned and managed by governmental
authorities (Toedt, 2014). Its purpose is to ensure public welfare through fulfilment of needs and
demands of public at large. The aim of these organisations is to maximise the welfare of people.
NHS is a renowned example of Public Sector Organisation.
Types of legal structure:
Central government entities are owned, managed and controlled by Central Government.
State government organisations are owned and run by the governmental authority of the state.
Local government organisations work under the jurisdiction of local governmental authorities.
Private sector organisations
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This consists of companies which work for the motive of earning high profits. These are
owned by a group of individuals or a corporation (Toedt, 2014). Its purpose is to attain high
profits and sales by offering market disruptive products to people. The main motive of these
organisations is to earn high profits. TESCO is a well established retail corporation functioning
within the confines of UK.
Types of legal structure:
Partnership is an association of individuals which are individually and severely liable for
the losses borne by the firm. The firm is governed by the term written within the partnership
dead. Sole proprietorship is a private organisation which is run and managed by a single person.
Limited company is an enterprise registered within The Companies Act. Hereby, the members of
the corporation are liable only till the extent of their share within the organisation.
Voluntary sector organisations
It consists of those entities that are run by a group of individual working together for the
welfare of its members. Its purpose is to ensure the welfare of members of association and
enhance their existent standard of living by meeting their basic needs. Oxfam is a renowned
voluntary organisation engaged in eradication of poverty across the globe.
Types of legal structure:
Trust is a setup whereby the one party transfers property to the second party for the
benefit of the third party. This is one of the prominent legal structures of voluntary organisation.
Unincorporated Association has no isolated legal existence and is not also a legal entity.
P2 Size and scope of organisations
The size and scope of organisations functioning within an economy vary from each other.
The various types of entities are public, private and voluntary. The size as well as scope of
companies pertaining to different sectors are brief discussed as follows:-
NHS (Public sector organisation)
Size and Scope depicts that NHS has approximately 200 healthcare centres across
England. It consists of approx. 1.4 million individuals who are engaged in provision of health
care facilities to people to ensure they sustain a healthy life. The scope is acknowledged to be
extensive as it can gain entry into the regions whereby it is currently not offering its services to
public at large. Its Vision is “To render high quality health care facilities to individuals across
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