Unit 1 Business and the Business Environment

Unit – 1
Business
And
Business
Environment

Table of Contents
INTRODUCTION..........................................................................................................3
TASK 1..........................................................................................................................3
P1. Determine various types and purpose of organisation with their legal structures
...................................................................................................................................3
P2. Analyse the size and scope for different types of organisations........................5
TASK 2..........................................................................................................................7
P3. Demonstrate the relationship between different functional units that links with
objectives and structure of organisations..................................................................7
TASK 3..........................................................................................................................9
P4. Examine the positive and negative impact of macro-environmental factors that
affect business operations........................................................................................9
TASK 4........................................................................................................................11
P5. Identify internal and external analysis of specific organisation with its strength
and weakness.........................................................................................................11
P6. Elaborate the interrelation of strength and weakness towards external macro-
factors......................................................................................................................12
CONCLUSION............................................................................................................14
REFERENCES...........................................................................................................15

INTRODUCTION
The business is defined as process through which entrepreneurs and
managers of firm manufactures product for selling it to the target market in order to
maximise revenue and profits. The business environment refers as combination of
internal and external surroundings of company that managers analyse its favourable
and unfavourable impact over an enterprise (Adeoye and Elegunde, 2014). The
organisation selected for this project is Pentland Group as being a privately-owned
global company. It invests in retail and wholesale business for sports fashion sectors
headquartered in London, United Kingdom. This project determines various types
and purpose of organisation with their legal structures. It further analyse the size and
scope for various sectors of business. It demonstrates the relationship between
different functional units that links with objectives and structure of organisations. This
project also examines the positive and negative impact of macro-environmental
factors that affect business operations. Additionally, it identifies internal and external
analysis with its strength and weakness by elaborating the interrelation towards
external macro-factors of business.
TASK 1
P1. Determine various types and purpose of organisation with their legal
structures
Business Environment:- It is described as the ability of managers to analyse
the intrinsic and extrinsic capabilities and weakness as compared to its competitors
for competing them with various strategies. The managers of company mostly
develop strategic decision–making procedure with their innovative idea for being
stable at perfect competition market.
Public Sector:- This sector managers focus on performing its actions by
following the rules and regulations imposed by political leaders. The government of
United Kingdom is mostly stable that is beneficial for company as there is no need
for changing their goals and objectives repeatedly. It is the sector which mainly
focuses on public transportation, education, children welfare infrastructure, military
services, health care, etc. It includes companies such as BBC, British Council,
Environment Agency, British Army, Network Rail, NHS, Automatic Weapons
Establishment (AWE), etc. The main aim of this business is to supply various
services for the benefit of public in domestic country. From the above mentioned
public companies of United Kingdom, the BBC is selected as it stands for British
Broadcasting Corporation as being public service with its headquarters in
Westminster, London (Bah and Fang, 2015).
 Purpose:- The main purpose of public sector is to provide various public
service for ease and safe migration of it domestic population. Managers of

BBC aim to enrich people’s lives with programmes and services that inform
about education and entertainment as creative organisation in world.
 Legal Structure:- It involves legal structures such as local, state and central
government that leads to manage and run business smoothly by not
maximising profits. The BBC is considered as oldest and biggest broadcast
company approved by government. Its size consists of total assets as US $
1.172 billion with large number of employees like 22,401 people in 2019. The
scope of BBC is to provide public services for everyone by serving their best
efforts for human welfare. The key stakeholders includes group of individuals
that are affected by business activity which consists of owners that are
interested in profit maximisation.
(a) Local government:- The administration of leaders which are inside the
local area and impose rules for small area of group.
(b) Central government:- The administration of leaders which are considered
as the head of country and is mandatory for every business to follow legal
legislations.
Private Sector:- It is a privately owned sector which emphasize on those
business that are not governed by legal legislations of government (Belás and et. al.,
2014). It has the benefits for maximising their sales and profits by attracting large
number of customers through their qualitative products and services for providing
them high level of satisfaction. There are various organisations in this sector and
some of them are Tesco, JD Sports, Pentland Group, Morrisons, Sainsbury, Bentley
Motors, Rolls Royce, etc. From the above mentioned companies of United Kingdom,
the Pentland Group is selected as being a privately-owned global company that
invest in retail and wholesale business for sports fashion. This enterprise aims to
manufacture its products and services at least cost that result in developing effective
goods for increasing sale that tends to remain stable in global market.
 Purpose:- The main purpose of private sector is to develop and build
customer relationship management by enlarging buyers through supplying
them low cost products. The managers of Pentland Group objective is to
achieve their short and long term goals by building brands with social
purpose, future proofing supply chain and respecting human rights.
 Legal Structure:- It consists of legal structures that are tax benefits for
entrepreneurs by minimising liability for sole proprietorship, joint ventures,
partnerships, merger and acquisitions, etc. Managers of Pentland Group
focus on this as to perform legal and ethical action within business by being
aware of consumer protection rights and employee legislations. Its size
consists for annual sale of US $ 6.4 billion with more than 50,000 people. The
scope of Pentland Group is to become second and third generation family
enterprise with its high scope of investment in future. The key stakeholders
are communities, suppliers, investors, employees, customers, etc.
(a) Sole Proprietorship:- It refers as the enterprise with only one
entrepreneur.