Business Environment: Analysis of Organization Types and Factors

This report provides an overview of the business environment, emphasizing the factors that influence organizational activities. It begins with an introduction to the business environment, highlighting the importance of considering both internal and external factors in strategic planning. The report then compares three types of organizations: profit, NGO, and non-profit, detailing their meanings, motives, areas of operation, and focuses. Furthermore, the report analyzes different scales of organizations, including micro, small, medium, and large, examining their purposes, sizes, and scopes. Each type is discussed in terms of its role in the economy, management strategies, and employee numbers. The conclusion summarizes the significance of the business environment, and the report includes references to support the analysis. This report is a valuable resource for understanding the diverse landscape of businesses and their operational dynamics.

Business and Business
Environment
(TASK1)

INTRODUCTION
Business environment is a combination of internal and external
factors which affect whole activities of the company. In this,
internal factors are controllable by the firm but on the other side,
external factors are not controllable. Thus, it is vital for manager to
the company to effectively consider all the aspect and factors
before preparing any strategies. Along with this, technologies,
government policies, ethics of the firm and many more are main
factors which highly affect the operational activities in positive
and negative manner.

Types of organisation

Comparison between three organisation
Basis of
comparison Profit
organisation NGO Non-profit
organisation
Meaning These enterprises are
totally work for
generating income and
profitability with main is
to expand business in
many countries. They
give priorities to
customers first and as per
their choice provide
goods or services in an
efficient manner. In
addition to this, for
bringing sustainability in
business, these industries
are continuously make
changes in production
and offer innovative
products. Customer
satisfaction and retention
of them is the main focus
point of such companies.
Organisations in this
sector are like charity
firms who provide loan
to entrepreneurs so that
they can open business
on small scale and earn
livelihood. So, main aim
of these companies is to
provide sustainable life
to citizens and other
people of different
countries.
Main focus of these
organisations is to make
profit at its maximum.
They manufacture goods
and services as well as
deliver to consumers as
per their needs in
exchange of monitory.
These organisations are
continuously altering
their products as per the
need of customers.

Continue
Motive Earning more and more
money and expand
business in large area is
main motive of such
industries.
Upgrading life of people
and their way of living.
Main motive of these
firms is to help people
for opening their
business so that they can
earn money for
satisfying basic needs
i.e. food, shelter and
clothes.
Are of
operations
In this, company can be
both small and large. Working under big areas As compared these
corporations are
operated business in
small area.

Size and Scope of various type of organisation
Basis Micro Scale Small Scale Medium Scale Large Scale
Purpose Outlets in this
sector are
generally open
on low
investment with
main purpose is
to earn money
for completing
basic desires i.e.
food, shelter and
clothes.
In UK, various
small scale
industries are
launching
business on daily
basis in order to
earn profitability.
These firms used
to proper
research about
desires of people,
trends of
marketplace,
purchasing power
of buyers and
more before
opening their
outlets.
Companies in
this section are
always focusing
on moving
businesses on
international
level and grab a
lot of share in
marketplace.
Management of
these firms
formulate various
strategies in order
to gain
competitive
advantage and
introduce
globalisation in
business.
As name suggest,
organisations
working on big
sector earn
profitability in
tremendously
manner. Since
these enterprises
are established in
a proper way
therefore, gain
sustainability and
competitive
advancement is
main aim of them
rather than
expanding
business.

Therefore,
these firms are
earned less
money and
profit. It
includes small
cafes, single
departmental
store, retail
shops and
more. They
earn money for
sustaining life
or own and
their family
This would
help them in
generating
innovative idea
and run
business well. It
includes tour
operators,
restaurants and
cafes, retailers
and more. In
addition to this,
they always
focus on
expanding
business on
next level.
Earning loyalty
of national and
international
clients as well
as their
retention is
main
consideration
point of firms
under medium
scale.
in addition to
this, to gain
retention of
customers,
these industries
used to create
modifications in
organisational
culture on
regular basis
and provide
innovative
products at
market place.

Size Usually
minimum
number of
workers are
employed in
this business
i.e. near about
2 to 5
These
companies
have usually 20
to 50 workers in
their premises.
Usually, these
associations
have more than
50 but less than
250 number of
workers in
workplace.
Industries
working under
large scale
have unlimited
number of
employees.
Scope As business are
much small so
no contribution
in economy of a
country.
SME’s are
contributes a lot
of share in
developing
economy of a
nation.
Therefore,
government
supports these
organisations in
launching
business.
These
companies also
play an
important role in
increasing GDP
of UK in an
efficient way.
Contribution of
companies in
this sector is
also enhance
economic rate
of nation in a
rapid manner.

CONCLUSION
From the above-mentioned report, it can be concluded
that business environment is consider as an important
concept which include both internal and external factors
that directly affect the entire activities of the company.

REFERENCES
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information technology alignment in cloud
computing environment: anapproach based on
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of Computer Integrated Manufacturing, 24(11)
pp.1038-1057.
López-Gamero, M. D., Molina-Azorín, J. F. and Claver-
Cortés, E., 2011. Environmental uncertainty and
environmental management perception: A multiple
case study. Journal of Business Research. 64(4).
pp.427-435.
Meiners, R. E., Ringleb, A. H. and Edwards, F. L., 2014.
The legal environment of business. Cengage
Learning.

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