Business and the Business Environment: Types, Size, and Scope of Organizations

UNIT 1: BUSINESS AND
THE BUSINESS
ENVIRONMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Types, size and scope of organizations........................................................................................1
Scope and size of company..........................................................................................................2
Relationship of organization structure.........................................................................................4
PART 2............................................................................................................................................5
Positive and negative impacts of macro environment on business operations............................5
SWOT analysis............................................................................................................................7
Strengths and weaknesses interrelate with external macro factors..............................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment is internal and external factors which are having an influence on
employees, customers needs and demands, clients, supplies, owners, social media, management,
etc. It is very essential for organizations in market to understand business environment in which
they are functioning so that they can make their future decisions respectively. There are a lot of
factors which can be improved and organizations can get a competitive advantage if they
understand environment in which they are functioning.
Unilever is a multinational organization which is having its headquarters in London,
United Kingdom. The services of the company are worldwide and products which Unilever is
dealing with are Beauty & personal care, cleaning products, food and refreshments, etc. There
are more than 155,000 employees working in company and net income of Unilever is €6.026
billion.
The report would be covering internal and external factors which are affecting
organization and what are methods which organization can use so that they can overcome them
which will make decisions for future more effective. There are a lot of changes which are taking
place in organization which Unilever has to deal with.
PART 1
Types, size and scope of organizations
Private Company (Profit Organization)
Private companies do not allow anyone to buy shares from outside company and
maximum board members these companies have been not more than 200 people. The rules and
regulations are very different from public and voluntary companies in market. Control of
decision-making in organization is in limited hands which makes conflicts in organization reduce
but drawback of this is that organization will not be able to get new ideas and innovations in
organization will be limited (Niaki and Nonino, 2017). Unilever is a private organization because
number of shareholders in organization are limited which is a great advantage for company to
function in market.
Purpose
 Private organizations focus on increasing sales of products so that they can get a
maximum profit out of it.
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 To fulfil needs and demands of customers company focuses how product can be
manufactured at a low cost and quality and sales remain same.
Public Company (Not for profit organization)
There are more than 200 shareholders in company is a public organization which can get
as many shareholders as required by business. The profit in organization is shared by all
shareholders of company and rules and laws are different from other types of organizations in
business. NHS is a public organization which is working for the health care of the poor so that
there is a better lifestyle of population in world (Aithal, 2016). There are a lot of people who do
not get themselves treated because of high services by healthcare.
Purpose
 To increase customer's satisfaction there are health services which are being provided to
patients. Purpose of company is to provide right health care services as required by people.
Voluntary company (non-governmental organization)
These organizations function in society so that they can have a better welfare and anyone
can donate so that organization can function better. These companies are non-governmental and
non-profitable and only work so that they can aware people and make them have a better lifestyle
for themselves (Martí, 2018). Oxfam is a United Kingdom organization which is having 290
different charities under one company. They work so that they can improve condition of people
better.
Purpose
 Company is not operating to earn profits but for welfare of society.
 Basic education is provided to people so that they can fight for their basic right and
remove poverty.
Scope and size of company
Basis NHS Oxfam Unilever
Size There are more than
106,430 doctors, 285,893
nurses, 21,597 midwives,
9,974 seniors managers
There are more than 290
charities which are involved
in Oxfam so that there is a
better outcome and
There are more than 190
countries which are being
covered with Unilever
products and Unilever
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