Business Environment: Analyzing the Scope and Size of Organisations

This essay explores the business environment and its impact on organizations, focusing on different types such as public, private, and voluntary sectors. It examines the size and scope of these organizations, detailing their objectives, market share, and sources of funding. The essay also discusses various strategies for business expansion, including franchising, licensing, and joint ventures. Concluding that each type of enterprise has its own unique characteristics and methods for growth. Desklib provides access to this and other solved assignments for students.

BUSINESS
ENVIRONMENT

Table Of Content
• Introduction
• Different types of organisation and their purpose
• Size and scope of range of different types of organisation
• Conclusion
• References

INTRODUCTION
 Business environment play a very important role in business
operations. Business need to face uncertainty.
 Because there are different kind of changes take place in
environment. There is two type of environment that is micro
and macro.
 These both influence business in larger extend. Internal
factors are those factors which take place inside the firm.

Task 1

Different types and purposes of organisations
• Public enterprise
• Private enterprises
• Voluntary Sector
Meaning
Private
enterprise are
mainly owned
by government.
These are large
enterprises. They
are working in
order to serve
society. For an
example ALDI
is a private
company
working in the
UK.
Public
enterprises are
owned by
private
individuals,
cooperation,
partnership
and others.
The structure
is very
important from
public
enterprises.
NHS is
public
organisation
Voluntary are
non profits
enterprises. The
main motive of
these enterprise
is to serve
society and
make this world
better place.
Diabetes UK
is a NGO
working for
diabetic
patients.
Objectives
The main motive
of private
enterprises is to
earn maximum
revenues and
retain customer
for longer term.
ALDI is having
objective of
profit
The main
motive of
public
enterprises is
serve people of
country. NHS
is working for
the society and
public of the
UK.
The main
objective of
voluntary
enterprise is to
make this world
a better place.
Diabetes UK is
having
objective social
welfare.

SHARES OF DIFFERENT
ORGANISATION

Raise of money
The main source by which
private enterprises are
raising money is equity
and debts
The main source of
capital for public
enterprises is taxes,
duties and other penalties
The voluntary firm raised
money from donation and
charity
Employees benefits
In private enterprises are
employees are getting
benefits of compensation,
good salary and future
opportunities.
In public enterprises
employees are getting life
security. Different plans
regarding allowance and
retirement.
In voluntary the
employees are getting
self satisfaction as they
are doing welfare of
people.
Examples
Virgin, Aldi Tesco, Mc Donald American red cross and
UNICEF.

Main Purpose of Business
 To bring new innovation in market so that existing
problem can be solved easily.
 To sell goods and services to customers.
 To generate profits

Explain the size and scope of a range of
different types of organisations
Basis Large Medium Small
Objectives
The objective of large
enterprise is to expand
their business in other
countries and maintain
the leading position in
market
Objective of medium
enterprises is to growth
business, earn more
profits and comes under
top companies
The objectives of small
scale enterprises is to
sustain in market and
earn enough profits so
that they fulfil their basic
needs.
Market share
Market share of large
enterprises is very large
they have business in
home country as well as
other foreign countries
also
The market share of
medium enterprises is
smaller than large
enterprises. They serve in
their domestic areas and
other regions also.
The small enterprises
market share is very
narrow. They only serve
in local regions.
Large enterprise earn Medium enterprises earn Low profit margins.

Basics Franchising Joint ventures Licensing
Meaning
Franchising means giving
authority to someone to
run business in the name
of franchisor.
In joint ventures two
companies together and
start their business on
particular project and
after completion of
project they get separated
Licensing refers to giving
authority to manufacture
the products in the name
of licensor.
Registration
In franchising
registration is
compulsory.
In joint ventures are it is
compulsory to get
registered.
In licensing registration
is not mandatory.
Training and support
It is very mandatory in
franchising to give
training and support to
franchisee.
In Joint venture training
is not required because
both firms are doing their
individual functions
In licensing training is
not required.
High degree of control. Low degree of control Moderate

CONCLUSION
There are different kind of enterprises are there. Each type of enterprises
are having own scope and size. Their nature, size, structure all are
different. They have their own motive. For expanding business different
ways are adopted such as franchising, licensing and joint ventures.