Business and the Business Environment

Business and the
business
Environment

Table of Contents
Introduction......................................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 : Different , purpose, types & legal structure...................................................................3
P2 : Size and Scope of organisations......................................................................................7
M1 : Analysis of Size, structure & scope of various organisations........................................8
TASK 2............................................................................................................................................9
P3 Interrelationship between functions of different organizations.......................................9
M2 : Advantages & disadvantages of interrelationship between functions of organisation 10
D1 : Critical analysis of complexities of different business types.......................................10
TASK 3 .........................................................................................................................................10
P4 & M3 : Positive and Negative impact of macro environment on operations of a business 10
TASK 4 .........................................................................................................................................12
P5 : Internal Analysis of organisation to identify strengths and weaknesses.......................12
P6 interrelation in strength & weakness of external macro factor.......................................14
M4 : Analysis of SWOT and their impact on decision making ..........................................16
D2 : Critical evaluation of both macro and micro factors on decision making....................16
Conclusion.....................................................................................................................................17
REFERENCE.................................................................................................................................18

Introduction
Business environment consist of micro and macro environment factors that are posing a
impact on functions of organisations. According to the motives of organisation there are three
major categories in which organisations are divided that includes private enterprises, public
enterprise and voluntary organisations (Aithal, 2016). The main mission of such organisations to
enhance overall profitability & Productivity. Tesco is a retail organisation of UK that was
founded by Jack Cohen in the year 1934. The operations and functions of every organisation are
affected by various internal & external factors. In Present report there are different organisations
that have to be differentiated based on public, private and voluntary sectors. Further, there is
discussion of relationship between different functions of organisation that are considered to
achieve some specific laid down organisations objectives.
TASK 1
P1 : Different , purpose, types & legal structure
Organisations can be classified in various different categories according to motive of
earning profitability, social objective and in some cases both. According to that their purpose and
scope always varies (Alsaad, Mohamad and Ismail, 2017). Presently there is discussion of
different organisation types:
Private organisation:
Business type:
A) Profit making:
There are some business who are working for a motive of maximisation of revenue and
profits. That is the mission and main objective of such business. It includes Regent college,
Tesco supermarket, Morrisons, Sainsbury's.
B) Not for profit:
There are some organisations that are build up as charities or organisations not working
for earning of profits. These organisations are only focussed towards enhancement of social work
and society's good. Such as British heart foundation, world food program, Oxfam are some
examples of not for profit organisation.
Types of business:
Private sector:

Private sector are enterprises are the ones that posses no Interference or government control.
Some examples of private enterprise are discussed below:
Sole trader:
Meaning: Sole trader can be described as business that are owned and controlled by one single
person.
Goal: Organisation has to focus on achievement of laid objectives by the sole owner that may or
may not be to maximise profitability.
Features: These organisations do not posses separate legal entity as ownership and business are
not different from each other (Bah and Fang, 2015).
Legal features: In these business owners are always liable personally for debts and losses of
business.
Examples: In organisation like Columbus photographer the owner and business are considered
same. In case of winding up or any other case owner is personally liable for all profit and losses.
Partnership:
Meaning: Partnership organisation are defined under partnership act 1890. that consist of people
who are part of same business with a motive of earning profits.
Goal: Goal is to maximise profits.
Features: Partnership is formed with more than two person coming together to start a business
Legal features: All partnership business are governed by Partnership Act 2002.
Examples: Solicitor doctors is a partnership business in UK.
Private limited company:
Meaning: Private limited company is a organization that is independent and can be started as
any form.
Goal: The main objective of private company is to lay down the mission and vision that has to be
achieved in course of business functioning.
Purpose: Core purpose of TESCO is to be champion for their customers so that they can help
them in leading a better quality of life and a easy way of living. Main objective is “Serving
shoppers a little better everyday” (Core Purpose and Values, 2020).

Size: TESCO is third largest retail store across world according to gross revenue. They are
having shops in countries like Europe, Asia and market leaders in UK with 28.4 percent market
share.
Scope: TESCO has diversified in areas like books retailing, electronic, clothing, furniture,
financial services, Internet, telecom, software.
Legal structure: TECSO has a hierarchical structure where board of directors consist of 10
members. John Allan is chairman of board, Dave Lewis is CEO, Alan steward is Chief financial
officer. They have a department of Corporate governance that is dealing with shareholders
(TESCO COMPANY ORGANISATIONAL STRUCTURE CHART EXAMPLE, 2016).
Features: Limited companies are independent and government may not posses any control on
the functioning and decision making aspect of such organisations.
Legal features: There are some legal aspects that a private enterprise has to work according to
their memorandum of association and articles of association that is governing the functioning of
such organisations.
Examples: Tesco and sainsburys are examples of such retail organisation. Major objective of
retail organisation to enhance their Present profitability and sales by dealing in quality of
products.
B) Public sector
Meaning: Public sector organisation are those that are having well known business and are
traded on stock exchange.
Features: Organisations are in control of government institutions, local authorities or trustees.
All stakeholders posses a influence on the working of such public organisation (Belás and et. al.,
2019).
Goals: The goal of public sector organisation is to maximise the welfare of society and work
towards achievement of monetary and non monetary objectives.
Purpose: The main purpose of NHS is to provide medical services to poor segment of society to
work towards improvement of living standards of people and provide them low cost or free of
cost services at times of need. NHS is focussed on “working together for patients”. They
followed principles of dignity & respect, quality of care, compassion core objective is to improve

health and well being of their patients through innovation and professionalism (NHS Values,
2020).
Size: According to data of march 217 NHS has employed 106,430 doctors, 285,893 nurses.
There are 207 clinical commission groups, 135 acute non specialist trusts, 17 acute specialist
trusts, 54 mental health trusts, 35 community providers and 10 ambulance trusts (NHS Values,
2020).
Scope: NHS is based on certain founding principles that includes services to be more
comprehensive, universal and free of cost. It is a health service offered free of cost at point of use
to ordinarily resident of UK (NHS Values, 2020). .
Legal structure: Legal structure of public organisation is related to activities that are in
government control. There is secretary of state that is governing health education England.
Further here are local NHS training and education boards under which there are deaneries and
academic health science networks.
Example: National health services is a public organisation that has a main objective of offering
healthcare services to people who belong to BPL.
C) Voluntary organization:
Meaning: Voluntary organisations are in control and guided by government. Their activities are
performed by volunteers to work towards improvement of social conditions of society. Such as
Oxfam is a voluntary organisation of UK.
Features: Voluntary organisations can work towards enhancement of vision that is to enhance
the living standards of people living in society.
Goals: Main goals is to take timely initiatives that can help in improvement of overall conditions
of people who are living in situations of poverty.
Objectives:The main objectives is to implement activities for welfare of society.
Purpose: Mission of OXFAM is to crate lasting solutions against injustice of poverty. They are
working towards global movement of change. They are empowering people so that a future can
be created that is secure & free of poverty.