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
P3Relationship between different organisation functions...........................................................7
LO3..................................................................................................................................................9
P4Impacts of macro environment on organisation......................................................................9
LO4................................................................................................................................................12
P5 Strengths and weaknesses of company.................................................................................12
P6 Strengths and weaknesses interrelate with external macro factors.......................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

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 organisations have
to adopt different models of situational analysis. 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). Marks and Spencer is
one leading retail business in the UK, 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 described below;
PUBLIC ORGANISATIONS
Define: Public ventures, 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).
Purpose: 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).
Legal structure: A public limited company need to register itself in the companies’ house of the
country. 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 within market place,
and purchasers of those shares become limited liability of this public company. Public ventures
can simply provide public shares to people in market.
PRIVATE ORGANISATIONS
Define: Private organisation and companies not sell their shares in market place, so that people
not enable to buy shares of these companies. Many times, top-level management provides shares.
Most 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.
Purpose: The main purpose of these private organisation is to gain effective profit in market.
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.
Legal structure: A private limited company also is required to register itself in the companies’
house. A private company, like; Iceland foods not able to sell its shares within market place to
raise a specific fund. According to the UK’s business law, the private organisation is legally
distinct entity with its own profits, assets and liabilities. These ventures generally operates by
sole traders and partnership contracts.
VOLUNTARY/SOCIAL ORGANISATIONS