Business and Business Environment Report: Types of Organizations

This report provides a detailed analysis of the business environment, focusing on organizational types, structures, and their interrelationships. It examines the internal and external factors that influence business operations, using examples like NHS England, John Lewis Partnership, and the British Red Cross. The report explores the relationship between organizational functions, their advantages, and disadvantages. It applies PESTLE and SWOT analyses to identify macro and micro environmental factors and their impact on business objectives and decision-making. The report also provides a critical analysis of different business structures and how they adapt to external factors and achieve their goals. The analysis covers the complexities of different types of business structures and the interrelationships of the different organisation. The report also includes a discussion on how the structure, size, and scope of different organizations link to business objectives and the products and services offered, providing insights into how businesses operate and adapt to their environment.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1 ................................................................................................................................................1
P1 Types of organization, their examples and their purposes.....................................................1
P2 Explanation of each chosen organization...............................................................................5
M1 Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation................................................8
D1 Provide a critical analysis of the complexities of different types of business structures and
the interrelationships of the different organisation......................................................................9
LO2..................................................................................................................................................9
P3 Relationship between different organisational functions.......................................................9
M2 Advantages and disadvantages of interrelationship between organisational functions .....11
LO3................................................................................................................................................12
P4 Impact of macro environment upon business operations.....................................................12
M3 Analysis of PESTLE model ...............................................................................................13
LO4................................................................................................................................................14
P6 Interrelation of strength and weakness with macro factors of environment.........................14
M4 Influence of Swot analysis on decision making..................................................................15
D2 Impact of macro and micro factors on business objective and decision making.................15
CONCLUSION..............................................................................................................................15
REFERENCES ............................................................................................................................17

INTRODUCTION
Business and business environment is the tool that identify the internal and external
environment of the business (Wheelen and et.al. 2017). The internal and external factor can
influence each other and it creates the positive and negative impact on the environment of the
business. It means external factor affect the internal environment of the firm. Business
environment contains many factors internal and external that influence the growth and success
of the business. In other words, business environments contains all the outside and inside
components of the business that influence how can firm manage their all functions and
departments such as consumers, workers, management and business regulations. For better
understanding the business environment, taken the John lewis partnership is the private sector
company in the uk. The report will describe the different types and purpose of selected
organizations, also describe the size scope and objective of selected company. Furthermore,
Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisational. Furthermore, report will
describe the advantages and disadvantages of interrelationship between organizational function.
Furthermore, this report examined PESTLE and SWOT analysis to identify macro and micro
environment factors and impact on firm and SWOT analysis helps to identify strength and
weakness of organization. furthermore, Provide a critical analysis of the complexities of
different types of business structures and the interrelationships of the different organisation.
LO1
P1 Types of organization, their examples and their purposes
Types of
Organization
Public Sector
Company
Private Sector
Company
Voluntary Sector
Company
Meaning A public sector
company is defined as
a company in which
more than 51% of
shares are owned by
the state and central
government. Further
the operations and
A Private sector firm
is defined as a
company in which
companies which is
not operated by the
government is
opposite for the public
sector company.
A Voluntary sector
company is the part
economy system. this
company provides the
help to the economy
by helping the people
in critical situation and
their main purpose to
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management of the
company handled,
control and operate by
the government. The
main purpose of
public company it is
that they only work for
their citizen of the
company and provide
best services to the
public. Further,
government provide
the funds to such
companies by the way
of budget and bank
loan so they fulfil their
requirements of funds
for run the company.
Further these
companies is
operated by the owner
of the company. They
manage their business
which means person
or group of people
control the company.
Their main intention
that they earn profits
and expand the
business of the
company is it that
they generate the high
profitability(Bah and
Fang, 2015). Private
company generally
use their own funds
and also they take
bank loans, public
find, crowdfunding to
full fill their
requirements of funds,
provide the best
services to the people.
Further, they also
work for the welfare of
the society for
improving the
economy condition of
the country. Company
fulfils their
requirements of funds
through charities and
government aids.
Chosen organization NHS England John Lewis
partnership
British Red cross
Organization's
purpose
The National Health
service (NHS) it is the
public funded
company, they provide
the variety of different
health services to the
John lewis partnership
is the uk company it is
the department stores,
Waitrose & Partners
supermarkets, also
provides the banking
British Red cross is the
uk based company
provides the first aid
and health care
services to the
customer. The main
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customer. The main
purpose of NHS
England it is that
 company
improve their
healthcare
services to
provide the
best care for
patients.
 The main
purpose it is
that they
improve in
their
technology to
provide the
best service in
all over the
world (Veit,
and et.al
2014). They
provide the
best health and
care services
in the
economy of
uk.
 The purpose
of the NHS
that they
and financial services
to the customer, and
other retail activities.
The main purpose of
John Lewis
partnership it is that
 The main
purpose of
partnership is
that they
provide the
best
environment to
their employs
give the
happiness of all
its members,
through their
different
benefits and
satisfying
employees so
they increase
the
productivity
and makes
successful
business (Helm
and Gritsch, S.
2014).
 The main
purpose of the
company it is that
 The main
purpose of the
British Red
Cross' is that to
save lives,
prevent and
reduce
suffering, and
increase
people's well-
being.
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provide the
best
information to
the customer
related to
their health
also they
improve the
environment
of the
institution
which increase
the customer
base.
 NHS increase
their
profitability
by using the
best
machinery and
also they
provide the
training to
their
employees to
enhance the
quality of
work this is
also helped to
increase the
customer
purpose of the
company it is
that they
provide the
best product to
the customer
increase the
ability to
provides the
good value in
the product. so
the main aim of
the firm it is
they provide
the security
and build the
trust among the
customer by
giving the
best quality
product and
provides the
different
choices so they
also attract
towards the
product value
and services.
4

Legal structure
satisfaction.
It is non department
public body. And the
parent department is
health and social care
department (Epifanova
and et,al. 2015).
John Lewis
Partnership PLC is a
public unquoted
company that wholly
own John Lewis PLC.
It is co-operative in
nature
Incorporated by Royal
charter ,1908
P2 Explanation of each chosen organization
Basis NHS England (public
company)
John Lewis
partnership (Private
Sector Company)
British Red cross
(Voluntary Sector
Company)
Background NHS formed in 1 April
2013. there
headquarter in the
Leeds, England. Sir
David Nicholoson
who became Chief
Executive of the
company.
The John Lewis
Partnership is a UK
company it is retail
industry which prevail
John Lewis & Partners
department stores,
Waitrose & Partners
supermarkets, its
banking and financial
services, and other
retail-related activities
(Khan, and Quaddus,
2015). There
headquarter in London
united kingdom and
the number of
employees is 83,000.
British red cross is the
voluntary company
there headquarter in
london, united
kingdom and the
number of members is
32,500 volunteers and
the total staff is 3500.
Sir mike Adamson is
the chief executive of
the company.
5

Products and service Provide the health and
care service to the
customer such as,
urgent and emergency
case, gps services,
dental service, mental
health services, Sexual
health services etc.
John Lewis
partnership Provide
the retail services
Clothing, watches &
jewellery, giftware,
cosmetics,
housewares, furniture,
beds & bedding,
audio-visual,
computing,
photography, food,
direct services,
financial services etc.
British Red cross
provides the First aid
and ambulance
services, Health and
social care services,
provides Fire and
emergency support,
Humanitarian
education, Refugee
support services etc.
Market size and scope Entity generates the
£162 million incomes.
company provides
their services in all
over the world (Khan,
and Quaddus, 2015).
John Lewis
partnership generate
the revenue in 1,020
corers GBP (2018).
also, they provide
their product majorly
in the UK but they
also sell their product
in all over the world.
British red cross
distribute their
services generally in
the united kingdom but
they also expand their
services in the world.
Sources of funding NHS England uses the
long term and short
term sources of
funding in their
business. Government
provides the funds to
John lewis partnership
use the different
sources of funding
they use their own
funds also they use the
bank loan, venture
British Red cross uses
the various types of
funding to fulfil their
requirements they use
the charity and
governments aids
6

such companies by the
way of budget and
bank loan.
capital, crowd funding
and public offering.
(Epifanova and et,al.
2015).
vision Company vision
statement is that they
enhance their service
in all over the world
also is to connect
people and
organisations, to create
a healthy environment
that enables change
and creates innovation
in order to improve
people’s health.
Partnership is owned
in trust for its
members, they share
the responsibilities of
ownership as well as
its rewards - profit,
knowledge and power.
The mission
statemented of the
British Red Cross is
that they provide the
best services to
mobilise the power of
humanity so that
peoples and
communities happy
and they enjoy the
services.
Mission Company mission
statement is that they
Delivering the better
health care services to
the consumers, to their
communities and also
provide the best
information to
population-wide and
individually focussed
initiatives (Georgescu
and Popescul, 2015).
These aim to
maximise health care
services in all over the
The company vision
statements is that the
main aims to deal
honestly with its
customers and secure
their loyalty and trust
by providing
outstanding choice,
value and service.
Vision statements of
the company is that
they provide the best
services in the world
where everyone gets
the help they need in a
crisis.
7

world It's all about
trying to keep people
well. delivering better
care through quick
access and new
technology with
modern services.
objective  To increase
the customer
base
 To enhance
the quality of
work by
using the
advanced
technology
tools and
techniques
 To increase
the customer
base by
providing
quality
product.
 To increase
the sale by
giving the
best
opportunity
to the
customer
(Helm and
Gritsch,
2014.).
 Protect life
and health of
the people.
 To decrease
the number
of deaths,
injuries and
in the crisis.
M1 Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation.
The structure size and scope of the NHS England its describe that company operates
their business in all over the world also company achieve their objectives by set the mission
and vision statements. They provide the best medical services to the customer on the minimum
price.
8

John Lewis partnership also contribute in the economy of united kingdom they serve the
financial and retail services in the UK as well as in the world they follow all rule and
regulations of the government provides the Clothing, watches & jewellery, cosmetics,
housewares, furniture, beds & bedding, audio-visual, computing etc. (Glova, Sabol and Vajda,
2014). the main aim of the company it is that they serve their services with high quality product
and achieve the trust among the customer. Furthermore, company follow their vision and mission
statement by achieve the objectives and goal of the company.
Red cross is the Voluntary Sector Company their main motive is save the people in the
critical situation. They provide the first aid and medical services to the customer also they
contribute in the economy by gives the best services they also set the target for achieving the
goal of the company.
D1 Provide a critical analysis of the complexities of different types of business structures and
the interrelationships of the different organisation
As per the view of (Belás, J and et.al. 2015) the John Lewis partnership face the different types
of problem in private sectors which is like unnecessary control and regular procedure, law ratio
of profit and lack of finance its creates the negative impact on the structure of the business
because firm cannot easily run their business and they are not generated the high profits.
Furthermore, the interrelationship between the different departments of the John Lewis
partnership face many problems related to the budget and money management because every
department wants the finance in their own departments and they fulfil their requirements. so its
increase the conflicts between the departments because they fulfil their needs first. Marketing
department need fund for promoting their products or services in market to attract its target
customers. Finance department provide funds to marketing departments to achieving the goal of
the company. So the process of exchange the funds it takes so much time and it also increases
the cost of production.
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LO2
P3 Relationship between different organisational functions
Organisational function consists of set of different activities that is being carried out in
different department of the organisation. It includes department such as marketing, human
resource, information technology, finance, etc.
Interrelationship between different organisational functions
Manufacturing and marketing department:- These two department is having close
relationship between their functions and it plays an important role in increasing the performance
of the company. Marketing department is depended on manufacturing like if the product is not
manufactured then it cannot be sold into the market. So marketing of a product is depended on its
production (Hamilton and Webster, 2018)therefore, production department is depended on sale
of product in the market and helps in increasing profit of the company. As production function
produce new products, maintain quality and then marketing function deliver it in the market for
resale and helps in satisfying the needs and wants of a customer. However, in John Lewis both
these functions play an important role as depended on each other for its operation. These
functions help in achieving organisational objectives by increasing sales and profit as well as
performance of John Lewis.
Finance and marketing department:- These functions are two pillars of the company that
helps in growth and earning profit for future. Marketing is depended on finance for the money
that is being required for investing in promotional activities of the company. If finance is not
provided to marketing then it will not be able to advertise the product into market and that will
decrease sales of the company. Without advertising sales cannot be increased and that will affect
profit of the company. Therefore, in John Lewis marketing department plays a crucial role as it is
social media networking platforms that require investment in the promotional activities. It also
helps in achieving organizational objective as without these two functions John Lewis do not
grow such as if there is shortage of sales then profit will be less that leads to less opportunity in
the company.
Operation and IT department:- Operation department is depended on IT as if the operation
department cannot provide proper equipment then IT department will not be able to do proper
arrangement that is required in the company (Prajogo, 2016). also, plays a crucial role like
without internet company's operation is not working properly. As in Facebook both these
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