Business and the Business Environment Report - Unit 1 BTEC HNC

This report provides an overview of the business environment, focusing on different types of organizations, including public, private, and voluntary sectors, and their respective legal structures. It explains the size and scope of various organizations, such as micro-enterprises, partnerships, and limited liability companies. The report further details the relationship between organizational functions, like sales, finance, and human resources, and how these functions link to organizational objectives and structure, using the Sheraton Grand London Park Lane Hotel as an example. The report also examines functional and divisional structures within organizations, highlighting the hierarchical flow of information and responsibilities. The conclusion summarizes the key aspects of organizational sectors, sizes, and structures, emphasizing their significance in the business world. References to academic sources are included to support the analysis and findings.

Business And The Business Environment

 Introduction
 P1 Explain different types and purposes of organisations; public, private
and voluntary sectors and legal structures.
 P2 Explain the size and scope of a range of different types of
organisations
 P3 Explain the relationship between different organizational functions and
how they link to organizational objectives and structure.
 Conclusion
 References
Tables of content

Every business follows some sort of structure which helps it the flow of
activities and operations. The organizations adopt such structures or
system which fits for their business. Structure and system also defines
the culture and working environment of an organization. There are
different types of organsition and they serves the different purposes.
According to the purpose they adopts the cultures, system and
structure. For reference purpose this report has taken an example of a
company, Sheraton Grand London Park Lane Hotel. This is a five star
hotel which is located at Piccadily, London. The hotel was opened in
1927. This hotel has its chain also in several countries also.
Introduction

There are many types of organizations and all these different types of organization
serves different purposes to the society or people according to their actual goal or
objective for setting up an organization. There are different types of organization
which are as follows:
Public: The public organizations are the organization which is operated and
controlled by the government. The main purpose for these organizations is to serve
the society and bring development to the place. These organizations main purpose is
not to earn profits like other non governmental or private organizations.
P1 Explain different types and purposes of organisations; public, private and voluntary sectors and legal
structures.

Development of nation: The proper development of the
nation can be brought only by the government because the
private organization mainly concentrates on making money
and growth only. Therefore the public sector has taken the
responsibility for the development of people. These public
sectors are formed to help the people who are minored or not
equal to the other people, by these organizations such minor
people come to an equal with others.

 Maximize sales and growth: Private sector makes the strategies
about how they can improve or maximize their sales. More the sales
give an organization more profit and also more market share in the
market place. Private sector thinks about the ways in which they can
increase their sales, more and more people buys or avails their
products or services.
 Voluntary sector: Voluntary sector are the organization which is
formed by some voluntary people who combined together for the
attainment of particular purpose. These voluntary sectors are totally
formed to serve the society.

Legal Structures of these organizations
 Public sector: In public sector, the employees need to have the legal documents of every
work or transactions because they have to show it to the government. The company has to
follow all the rules and regulations which is set and decided by the government. The public
sector companies legal system is very much rigid and the communication flow is very slow.
 Private sector: There are separate legal structures which a private company has to follow.
This structure is formed by a body which is engaged in the legal structures of all the
companies formed into the countries. Therefore all the private sector has to follow up these
obligatory legal structure in their systems and structure.
 Voluntary sector: in Voluntary sector, the organization itself sets its legal structure as the
organization is formed for the attainment of a particular work or task. There is no such legal
structure which is formed for voluntary sectors or organizations.

The organizations can also get differ in their sizes, these sizes are as
follows:
 Micro enterprises: In this type of enterprises the number of
employees employed by the company is between 1 to 9. These
organizations provide their goods and services to small number of
people or within a local area.
P2 Explain the size and scope of a range of different types of organisations.

Partnerships: The partnership is the type of organization in which there
are two or more people. The liability of the business is divided in the
decided ratio, generally on the basis of capital contributed by the partners.
The relationship in the partnership business is governed by deed of
partnership which defines the scope of partnership. The deed also
includes the responsibilities of each and every member has in the
business. There are many types of partners in a business, some are active
members, some are silent members, some are sleeping members and etc.
It is very much crucial to note that not all the partnership is unlimited
partnership. Limited liability partnership is very common now days. LLP
is adopted by the firms like law firms, doctors or any professional venture
or firm.
Limited Liability: Limited liabilities are the companies which have
some following features as:
◦Separate legal entity: Both the company and the owner are a separate
person. The liabilities upon a company is not upon the shoulders of
owner. The company is responsible to pay the liabilities.

There are many departments into an organization. These departments
have different functions or work to perform but all the work of these
departments are interrelated with each other. They are interrelated with
different way like:
Functional structure: In functional structure the departments are divided
on the basis of functions they perform into an organization. For example,
sales department, finance department, human resource department,
marketing department, production department and the so forth.
P3 Explain the relationship between different
organizational functions and how they link to
organizational objectives and structure.

Divisional structure: In the divisional structure, the organization is divided
into levels. These levels are top, middle and low level of management. In low
level of management comes the staff of the Sheraton hotel, in middle level of
management comes the managers of the hotel and at the top level of
management comes the owner or directors of the hotel who forms the major
mission and vision for the company. In this structure, the flow of hierocracy
is high to low, means the top level management level gives order to middle
level people of management and then the middle level management people
gives orders to low level management people. Divisional structure allots or
gives positions to employees in the organization.

From the report discuss above, there are three types of organizational
sector which are public sector, private sector and voluntary sector. All
these sectors have different legal structures with they need to follow.
The public sector runs for serving the general public, private sector runs
for a basic purpose i.e. to earn profits and voluntary organization is set
for attaining a specific goal and they work towards the welfare for
society. There are also different types of organizational size, which are,
micro, small, medium and large and all these are differentiated on the
basis of employees they have in their businesses.
Conclusion

 Koišová, E. and et. al., 2017. SMEs financing as an important factor of business
environment in Slovak Republic regions. Montenegrin Journal of Economics.
 Sinay, J., 2014. Safety management in a competitive business environment. CRC
Press.
 Iyer, B. and Henderson, J. C., 2012. Business value from clouds: Learning from
users. MIS Quarterly Executive. 11(1).
 Prajogo, D. I. and Oke, A., 2016. Human capital, service innovation
advantage, and business performance. International Journal of
Operations & Production Management.
REFERENCES