Business and the Business Environment

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
P1- Different types and purposes of organizations......................................................................1
P2-Size and scope of different types of organizations.................................................................2
P3-Relation between different organizational functions and their link with structure and
objectives.....................................................................................................................................3
P4- Impact of micro environmental factors on the operations....................................................4
P5- Internal and external analysis of the specific organisation in order to identify the strength
and weakness...............................................................................................................................6
P6- How strength and weaknesses interrelate with the external macro factors.........................10
Macro.........................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business refers an activity of making money by buying and selling products for different
purposes. Business environment is sum of both internal and external factors like political, social,
economic, customers, employees and others (Čepel and et.al., 2018). This present study is based
on Sainsbury’s that is the second largest chain of supermarkets in the UK, founded by John
James in 1869.This present study is going to show impacts of internal and external
environmental factors on performance of company. It will analyse impacts of external
environmental factors like political, social, environmental and others.Further, it will also discuss
impacts of organizational structures like hierarchical, flat and others. Different structures have
advantages and disadvantages and affect flow of information. Different types and size of
structures also have different legal entityand as per the legal entity and structure they have to
follow rules for protecting themselves against lawsuits.
P1- Different types and purposes of organizations
Private:All those companies that are being owned by individuals are known as private sector
organizations. They are being run for earning money and making profit. Profits that are being
generated are being divided and benefited to owners, shareholders and investors. In regards to
financing it can be said that these organizations are financed by private moneycollected from
shareholders and bank loans. It is one of the main parts of economy. All organizations of private
sector are privately owned and for profit businesses (do Monte, 2017). It may be sole traders and
partnership enterprises. Revenue generated by such organizations is being divided among
business owners and shareholders and some amount is reinvested in business for earning more
profit by satisfying customers’ needs.Sainsbury’s is private sector organization as it is owned and
controlled by groups of people rather than the government.
Public: It consists of those companies that are being owned by the government. The main
purpose of such organizations is to provide services and goods to people for their beneficial and
improvement of living standard. Such organizations are being run by the government and money
is being raised generated from revenue from local people. Whatever amounts they earn are being
re invested in business for providing better services to people. Unlike private organizations, these
organizations do not focus on making profit and distributing money or revenue among owners
and partners. It may be public limited and public (El-Ghalayini, 2017). Example of public
limited company is HSBC.
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Voluntary: It is also not for profit organizations that are run as well as owned voluntarily by
trustee and people who want to help people and join such organizations voluntarily. Main aim of
such organizations is supporting vulnerable and needy people that cannot help themselves and
require help of others for living a better life. So, overall it can be said that such organizations
work for helping out community. For operating business they require money that is being
collected from donation and gifts. Profits are being regenerated in voluntary sector of
organizations and it can also be run and known as social enterprises. American Red Cross is
humanitarian organization that provides emergency services or assistance to people, affected
from disaster and is in need (Liao and Huang, 2016).
Legal structure
The legal entities are organisation that has legal rights and responsibilities including tax filing.
There are two most important requirements for enterprise to be complaint with the low, first its
policies need to be consistent with laws.
Sole traders
Soldiers are the self employed person who run their own business individually and share whole
profit and liability as well. Starting update sole traders, It is necessary for the businessman to
register with customs and HM Revenue as self employed for tax and national insurance purpose.
Partnership
A partnership his formal argument between more than two parties to operate and manage the
business and share its profit. there are some legal documents that are required to form a
partnership some of them are partnership agreement, partnership deed, employment contract etc.
So, from the above discussed all different types of organizations it can be said that all
enterprises have different legal entities. Profits and losses are also being divided accordingly and
with the purpose and aim of different types of organizations, they can be identified and differ
than each others.
P2-Size and scope of different types of organizations
Every organisation has different size and scope that define their category and type of
organisation. size is the number of people who are working within the organisation or the
structure company has been implemented to run the activities daily basis. Silence golf
organisation shows the differences between the large, medium, small organisation that include
their goals and objectives, market shares and profitability and sustainability.
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