Unit 1: Business & the Business Environment

Business & the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Illustrate various types and purposes of public, private and voluntary sector and legal
structure.......................................................................................................................................3
Explain the size and scope of distinguish types of firms............................................................6
Discuss the relationship between various organizational functions and how they connected
with firm's objectives and structure.............................................................................................7
PART 2............................................................................................................................................8
Conduct Pestle analysis ..............................................................................................................8
Conduct internal and external analysis of specific firm's to identify strengths and weaknesses 9
Elaborate strengths and weaknesses interrelated with external macro factors.\.......................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is stated as accumulation of both internal and internal factors like,
management clients, employees, activities by government, social trends, innovation in
technology, supply and demand, customers preferences and so on (Ayios, 2018). It is important
to study business environment effectively as it helps to better understand the rivalry's strategies
and action. This report is based on North London Chamber of Commerce and Enterprise
(NLCCE). It is a independent membership organization who is supporting and representing
business, charities and education across North London. This is located in Enfield EN3 5JH,
United Kingdom. This assignment covers public, private and voluntary sectors purpose and legal
structure. Relationship among various organizational functions is studied in order to full-fill set
goals and objectives. The positive and negative side of macro environment is deeply evaluated so
as to make strong tactics for better results. The strengths and weaknesses are connected with
external macro factors are examined in order to make improvements in the loop holes.
PART 1
Illustrate various types and purposes of public, private and voluntary sector and legal structure.
The numerous types and purpose of organization with their legal structure are elaborated
below:
Public sector (Network Rail): In this case, businesses are owned and operated by governing
bodies of the nation and they work for the welfare of the society or community.
Purpose: The main purpose is to uplift the living standards of the society (Edgington,
2018).
Legal structure of public sector:
 Central government: With the help of income tax huge finance is accumulated.
 Local government: Through council tax cash amount is gathered from society or
community.
 State government: Those firms are under their control where there is no central
government interference.
Private sector (Hennes and Mauritz): Those organization which are owned and operated by
individual person. They bear all the risk and profit all alone.

Purpose: They focus more on innovation in order to full-fill the emerging needs of the
customers.
Legal structure of private sector:
Sole proprietorship: Grocery shop, taxi drivers etc. are examples of sole proprietorship
as they are operated by individual people.
Partnership: Here, the ratio of profit and loss is mentioned in an agreement where both
party mutually agree.
Private limited company: It limit the liabilities of the firm in relation to their
contribution. Along, with this it is a legal structure (Fabus, 2018).
Voluntary sector (Cancer Research UK): Here, person take participation willingly. They
contribute their valuable time and money in solving issues associated with people of the nation.
Purpose: They are non-profit and non-government firm. Their main purpose is to serve
better services to the general public.
Legal structure of voluntary sector:
Trust: This type of firm are not legal entities but render services to the society based on
the faith and trust of all the members.
Unincorporated association: It is formed by group of person who come together to full-
fill specific purpose such as, societies, clubs and so on.
The differences between micro, small, medium-sized enterprise are described as under:
Micro enterprises are operated by the owner and very few people are working in it.
Whereas, in case of small enterprise less or 50 staff members are working day and night to meet
the emerging needs and wants of the customers. Their main motive is to earn profit and grow
business in other region or varied geographical area. While, medium size enterprise is a
independent firm where around 250 workers and are serving quality services to the end users.
They mainly focus on quality of products instead of maximizing huge revenue. The differences
are illustrated below:
Basis Micro enterprises Small enterprises Medium sized
enterprises
Scope The scope is to bind
client emotionally with
their goods and
To grow business in
other region or
geographical area
To build loyal
customers over the