Unit 1 Business and The Business Environment

Unit 1- Business and The
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types of organisation with their legal structure and purpose................................................1
P2 Scope and size of different organisation................................................................................3
TASK 2 ...........................................................................................................................................5
P3 Relationship between different organisational functions and their link with organisational
objectives and structure...............................................................................................................5
TASK 3............................................................................................................................................6
P4 Positive and negative impacts the macro environment has upon business operations,
supported by specific examples..................................................................................................6
TASK 4............................................................................................................................................8
P5 SWOT analysis of private and public sector..........................................................................8
P6. Interrelationship of External Macro Factors with Strengths and Weaknesses.....................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The term business and business environment include all units, aspect and forces that are
beyond the control of an organisation. Business environment includes all forces which comprises
of investors, market conditions and technological aspect for an organisation. Public, voluntary
and private are three category of a business firm. The main motive of business environment is to
understand about all essential changes that impact on operations and functions as it aids to retain
in market for longer period. Debenhams is selected as a private organisation for this report which
operate their business in retail sector (Abuzeinab, Arif and Qadri, 2017). Moreover, this report
highlights on three different sector including private, voluntary and public and also on size,
scope, legal structure and purpose of organisation. In the last, inter-relationship between internal
and external factors along with positive and negative aspects of business will be included in this
report.
TASK 1
P1 Types of organisation with their legal structure and purpose
The term organisation is explicated as a form of employee's, resources and project that
work together towards a similar purpose. Profits earning, social welfare and fulfilment of
customer's needs are some functions of organisation. Different type of organisation are mention
as follow:
Public Sector Organisation
This type of sector include those business which are financed and controlled by the
government on the behalf of public. In context of public sector organisation social welfare is an
important function of public organisation (Bailey and De Propris, 2014). BBC is taken as a
example of public sector to spread news all over the world.
 Purpose- Fulfilment of society needs and to offer best services at low price is the main
purpose of public sector organisation.
 Legal structure
1. Central government- To manage and perform work according to central government
guidelines.
2. State government- For managing work as per particular rules of state government.
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3. Local government- Local authorities ensure all task are completed by organisation in
an ethical manner.
Private sector organisation
Private sector includes all organisation that are controlled and established by sole-
proprietorship or partnership authority. An owner of private organisation is responsible for
financing and controlling business with himself (Belás and et. al., 2014). Example- Debenhams
is a private organisation that operate business with sole-proprietorship aspect.
 Purpose- Profit earning and to operate business at global level is the main purpose of
private sector organisation.
 Legal Structure
1. Sole-proprietorship- Individuals offer products and services to customer's for earning
large amount of profits and to manage business with sole-proprietorship individual
obtain license to complete work in ethical manner.
2. Partnership- The term partnership refers to an agreement in which more than two
individual agree to perform activities or actions with dividing roles and
responsibilities related with organisation perspective.
3. Limited organisation- It is identified by organisation that limited organisation
perform and manage work to generate benefits with engaging shareholders.
Debenhams perform and manage work as a limited organisation.
Voluntary organisation
This include the group of individuals that perform and manage work with involving a
group of individuals. All persons enter among organisation with motive of accomplishing
objective (Belás and et. al., 2019). Oxfam is consider as a global organisation that work for
reducing the poverty from nation.
 Purpose- The main aim of voluntary organisation is to offer different benefits related
with society welfare.
 Legal structure
1. Trust- It is not recognise as a legal entity that refers volunteer members perform
work with motive of improving society standards.
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