Business and the Business Environment

BUSINESS AND THE
BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Different types & purposes of organisations..........................................................................3
P2 Types of businesses and organisations by size and scope wise..............................................5
LO2..................................................................................................................................................7
P3 Relationship between different organisation functions..........................................................7
LO3..................................................................................................................................................8
P4 Impacts of macro environment on organisation.....................................................................8
LO4................................................................................................................................................11
P5 Strengths and weaknesses of company.................................................................................11
P6 Strengths and weaknesses interrelate with external macro factors......................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business environment is basically a zone for an organisation to conduct and operate
different activities of business. Currently every business in market place tries to analyse its
business environment because after having effective business environment, any company can
simply grow in market place (Vlachos,2016). Top-level management within different companies
have to adopt different models of situational analysis, because after conducting situational
analysis, any business can simply find out those elements and factors of the market which can
affect that business in both manners positively and negatively. This report is completely based on
the different business environment factors of Marks and Spencer’s (M&S). The M&S is one
leading retail business in the United Kingdom, headquartered in London, England, UK. This
report discusses different types of organisations, size and scope of organisation, relationship
between different organisational functions, macro & micro environment factors etc. Some other
key factors relating to business and business environment also have been discussed in this report.
LO1
P1 Different types & purposes of organisations
Many types of organisations exist within the market place which has different purposes
and different morals. There are public organisations, voluntary organisations, private
organisation etc. some key types of organisations which has been discussed below;
Public organisations
Public organisations, these organisations are always selling their services and products in
market place, so that, any person can simply buy different shares of any public company or
organisation in market place (Agustinaand et.al., 2020). The main purpose of these organisations
is to generate huge profit margins in market place by providing different products and services.
On the other side, most public businesses or companies always runs their business operations at
the international level. These organisations always capable to invest very high amount of fund in
purchasing the modern and hi-fi technology. A public organisation always has large number of
employees within its workplace. Basically, public ventures always able to generate very

excellent employment opportunities to people in market place.Currently Marks and Spencer
P.L.C. is an excellent example of a public organisation, because it sells its shares publicly
(Marks and Spencer p.l.c. - Company Profile, Information, Business Description, History,
Background Information on Marks and Spencer p.l.c., 2020).
Private organisations
Private organisation and companies basically not sell their shares in market place, so that
any person not able to shares of these companies. Many times, top-level management provides
shares, The main purpose of these private organisation is to gain effective profit in market place.
On the other side, many of public ventures mostly run their business operations only at the
national and regional level. Currently only few private businesses exist within the UK’s business
environment which are capable to run their business operations at the international level. A
private company always have fewer numbers of employees than a public company. These
organisations mostly try to invest in buying those technologies which are very necessary to them
(Pfeffermann, 2017). Currently Iceland foods ltd. is the best example of a private organisation.
Voluntary/social organisations
Voluntary and social organisations, these organisations mainly work in the social welfare
or public welfare. Earning very higher profit margins is not the main objective of this these
organisations. The main purpose of these organisations is to maintain ethics and effectiveness
within society by working the social welfare. Currently many of voluntary organisations exists
within the UK’s business environment, in which the Children’s society is one of key examples of
voluntary businesses. Currently donation and charity are two key main sources of funding to
these organisations. Most voluntary and social organisations operate their operations at very
small scale. Currently only few social organisations are able to run their operations at
international market. For example; World food organisation, WHO etc.
LEGAL STRUCTURE
A public limited company has always required to register itself in the companies’ house
of the United Kingdom. Companies house is generally a governing body which manages
different businesses within the country. A public venture, like; M&S can freely sell its shares