Business and Business Environment: Organization Types and Analysis

This report provides a comprehensive analysis of the business environment, focusing on different types of organizations (private, public, and voluntary sectors) and their characteristics. It examines the size and scope of organizations like Waitrose, BBC, and the British Heart Foundation (BHF). The report delves into the interrelation between various organizational functions and objectives, highlighting the importance of departments such as Human Resources, Research & Development, Marketing, Finance, Sales, and Production. Furthermore, it applies the PESTLE framework to assess the positive and negative impacts of the macro environment on businesses. The analysis also includes an evaluation of internal and external factors, determining strengths and weaknesses, and exploring their interrelation with external macro factors, providing a holistic view of the business landscape.

Business and
Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purpose of organisation..........................................................................1
P2 Size and scope of several organisations.................................................................................3
TASK 2............................................................................................................................................4
P3 Linkage between functions and objectives of organisation...................................................4
TASK 3............................................................................................................................................5
P4 PESTLE to determine positive and negative impact of macro environment.........................5
TASK 4............................................................................................................................................7
P5 Internal and external analysis to determine strengths and weaknesses..................................7
P6 Interrelation of strengths and weaknesses with external macro factors.................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business runs in society. These are various components which affects business
environment. It is essential to work as per business components, so there will positive results.
There are various factors which has to be considered by manager before framing policies, this
helps to know what can be done through which positive outcome can be gained. It is not essential
that every factor is in control of mangers, so policies of business must be flexible, this helps to
mould accordingly (Cascio, 2018). There is requirement of proper analysis of external market, so
association can alter their strategies through which positive results can be generated. In this
report there is discussion about three association, those are private i.e. Waitrose, Public i.e.
BBC, voluntary i.e. British Heart Foundation. In this report there is discussion about various
types of organisation, its size and scope, relationship between various departments, positive and
negative impact of macro business environment, Strength and weakness of external factors.
TASK 1
P1 Different types and purpose of organisation
In society there are various types of organisation. There is difference in their purpose,
goals, objective, working style, etc. This means it is important to analyse type of association and
then use factors which are affecting it. Mainly there are three types of organisations. They are
discussed as under-
PRIVATE SECTOR ORGANISATION
these are the organisations which have set up with minimum 5 people. They have
different plans which has to be achieved with join efforts of workers and management. These
associations are effective for increasing good image in market. There are possibilities that due to
use of policies which are competent to market, then this helps to make upliftment of people
residing in society. There is huge competition in organisations of private sector. They have
knowledge about use of policies which are competent to market and this is efficient for making
good profits. Waitrose is the example of private sector organisation (Deasy and et. al, 2016).
Waitrose company has to make changes in working style according to external factors.
Managers of Waitrose must have knowledge related to external factors, so working style can be
modified. Waitrose's main aim is to earn profit, so it is important to make policies through which
customer satisfaction is possible. This helps to create loyalty among customers which helps to
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increase profits and production. Waitrose operates in many countries so it is important to work
according to government policies of concern country, this helps to work smoothly in industry.
Purpose of private sector organisation are a under-
 To earn profits.
 To improve living of standards.
 To raise economy of country.
Types of private sector organisations are-
Proprietor- In this type of business there is involvement of single person. He is the owner
as well a servant of business. There is unlimited liability and sometime there is shortage of funds.
Partnership- In partnership there are two or people working to attain same goals. In this
type of business there is partnership deed which talks about sharing ratios, profit margins, etc.
partners also have limited liability.
Limited company- This is the company in which liability of members are unlimited and
there is difference between members and company (Eling and Schaper, 2017). In this category
there are two companies- limited by shares and limited by guarantee.
PUBLIC SECTOR ORGANISATION
In such types of organisations there is involvement of government with the share of 50%.
This helps to work for serving society rather than earning profits. Electricity department, water
department, etc. are part of public sector organisations. There is no competitors in market of such
organisations. BBC is example of public sector organisation.
Purpose of public organisation
 To provide basic facilities to society.
 They works to perform activities through which standards can be arised.
Types of public organisations
Central government- This is the highest level of government which works at national
level. This is the highest authority which control effective for running social affairs.
State government- This government is link between central and local government. When
some issues are not solved by local government then it forward to state government. While they
can not provide satisfactory answer then this forward to central government.
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Local government- This is the government which works at district level (Goleman, 2017).
They solve problems which are raised in society. They have least powers as compared to other
government.
VOLUNTARY ASSOCIATION
There are any issues which arise in society, these organisations works to improve
activities for making changes in roles and responsibilities of society. There are some people with
work for social cause. This helps to know what can be done through which changes are accepted.
British Heart Foundation is example of voluntary association.
P2 Size and scope of several organisations
As there is difference in goals and objectives of association, so there is difference in size
and scope of actions. There is discussion about size and scope of various types of organisations-
WAITROSE
Size- Waitrose is one of the biggest super market chain. This company was founded in
1904 by Wallace Waite. Its parent organisation is John Lewis Partnership. It has head quarter in
UK. There are all over 352 locations in various parts of UK (Hillary, 2017).
Scope- Waitrose deals in food sector. They have line services for food segment, grocery
store. From 2011 they serve wines, spirits of Queen Elizabeth II.
Business objectives- Their objective is to work as per requirement of society and this is
effective for making changes in product which are significant to association. They want to serve
customer with trendy products.
Vision- Vision is spread happiness so customer have trust and loyalty in brand.
Mission- They works for satisfaction of employee also. This helps to provide growth of
company.
Stake holder- Waitrose is big private company. There are numerous stakeholders which
works for improving condition of company. This helps to raise funds and has positive impact on
sales of company.
BBC
Size- This company works under public limited association. This association was set up
in 1922. BBC deals in providing television services.
Scope- This association works in more than 440m homes, 3m hotels, 165 ships, 30
commercial sites and other various international business level.
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Business objectives- Their objective is to work which provides amazing services to
society.
Vision- Their vision is to enrich people with services which are competent to
information. They want to deliberate growth and success of people (Kew and Stredwick, 2017).
Mission- There is use of some policies which are effective for approaching changes in
roles and responsibilities to remove poverty. They want to do small things which provide more
happiness and satisfaction to customers.
Stake holder- As BBC is a public limited company, so there is equal role of government
to deliver appropriate information.
BRITISH HEART FOUNDATION
Size- This the largest heat charitable trust. This association was founded in 1961 in
London. British Heart Foundation gets highest and to perform business operations.
Scope- They perform, research so people can live with living people with carrying heart
which is significant for life of person (Kolk, 2016).
Business objectives- Objective of British Heart Foundation is to create environment
within society which improves perpetuity of life of people.
Vision- Their vision is to save people from pre mature death.
Mission- Mission of British Heart Foundation is to provide car and treatment, so people
can live long life.
Stake holder- There are many people who are working in this direction such as staff
members, supporters and stakeholders.
TASK 2
P3 Linkage between functions and objectives of organisation
Waitrose is the association which works to make changes in business operations as there
is change in business environment, so manger has to accept alterations and this helps to compete
with external factors. There are various department in Waitrose, which work in team so activities
are effectively performed. Manger has to work as per market and there must be use of
approaches through which changes are efficiently. Departments of Waitrose are discussed as
under-
Human Resource- Human resource department works for upliftment of workers working
in association. There are possibilities that due to use of techniques which are appropriate in
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performing business operations. There are possibilities that workers are not ready to work under
changed environment, so this helps to achieve targets on time. Waitrose operates in various parts
of country, so there is need of worker, it is essential to know qualities which are required and
hence this helps to make alterations in selection and recruitment techniques. HR manager must
select best candidate from crowd so there is no cost and time wastage (Prajogo, 2016).
Research and Development- Research and development department works for making
changes in product of Waitrose. This department helps to increase sales of association. They find
options where modifications are possible. There is use of factors which shows positive impact on
operations. This department helps to know about reviews and feedback about product and this
helps to make modifications in product.
Marketing- Marketing means to provide knowledge about product and services to
customers. There are various tools which helps in promotion of product such as advertisement,
hoardings, etc. While selecting options, manager of Waitrose has to analyse cost of marketing
and that technique must effective for targeted customer. There is use of policies as per
competitor's so customer does not get attracted towards competitor's. In retail sector competition
is increasing, so it is essential to work as per change in marketing department (Smith, 2017).
Finance- Finance department is essential department which works to collect information
related to funds, etc. it is effective for analysing market and then take actions which are
competent to current market. Finance manager helps to know about techniques which are
effective for developing business. Finance department helps to make appropriate profits and
measures are taken to reduce cost of production, transportation, etc.
Sales- When some new product is launched in market, then it is essential to work
according to us of techniques which are effective in approaching challenges. Sometimes there is
use of tools which are effective and efficient in analysing market. Activities which are performed
must be according to market and hence there will increment in sales. While approaching
customer, there must be use of good marketing tools, though which targets can be accomplished
effectively.
Production- There are various services produced. These must be produced with using
appropriate techniques which are competent to company. There must be use of policies which is
effective for satisfying demand of customer. Production must be done as per demand f
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customers, so production manager must keep contact with sales, marketing, research and
development department (Sodeyfi, 2016).
TASK 3
P4 PESTLE to determine positive and negative impact of macro environment
PESTLE is the technique through which external forces of company can be judged. There
is use of policies which are required to be maintained by manager so business operations can be
performed effectively. It is essential to alter business plans which shows negative impact on
business operations. This is effective for make changes in role and responsibilities of worker.
Manager has to deliver knowledge and select technique which is best for approaching changes.
Through PESTLE analysis there is positive as well as negative impact, so it is essential to
analyse them and this helps to get positive result on profits (Wack, 2017). Negative and positive
impact of PESTLE for Waitrose is discussed as under-
(Source: PESTLE Analysis, 2017)
Basis Positive impact Negative impact
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Illustration 1: PESTLE analysis

Political Political means government
related rules and norms. There
is use of various strategies
which are effective for making
changes in roles and
responsibilities, so this is
effective for making changes
in business plans and policies.
Sometimes due to change in
government parties, this affects
business roles and
responsibilities which is
effective for making changes
in business activities. This
affects routine business
operations so there is hurdle in
working.
Economical Waitrose deals in retail sector,
there is requirement of funds
which are effective for
performing business
operations. Funds can be
raised from external source
when Waitrose has good
image in market, so manager
emphasis on working
significantly and there is
improvement in product and
services.
Economic factor affects
business very adversely. Due
to shortage of funds business
operations can not be
performed effective, then this
is effective for making
changes.
Social Business works for making
good image in market, there is
use of approaches through
which people can contribute to
change in business activities to
get positive results and
enhance image.
While altering product and
services as per need of
consumer, this make frequent
changes in business operations
which continuity of perform
activities.
Technological Technology has positive Due to frequent change in
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impact as it helps to perform
business operations in less
time and cost. There is no
waiting time for consumer.
competitor's technology, this
shows that manger of Waitrose
also have to work according to
need of use of techniques
which might does not affect
business roles and
responsibilities of workers, so
they are not ready to accept
changes frequently.
Legal Legal factors are important to
make business run ethically.
There is trust factor in mind of
parties which are related to
business. This helps managers
to perform business activities
significantly and as per norms.
Due to legal factor there is
need of changes which are
significant for making changes
in roles and responsibilities. In
case of non accepting changes
this affects performance of
enterprise.
Environmental Environment factors helps
Waitrose to work according to
need of customer, some there
will positive impact on sale
and profits.
Due to change in environment
there are possibilities of
damage of product, this proves
to be loss for Waitrose.
TASK 4
P5 Internal and external analysis to determine strengths and weaknesses
There are some positive as well as negative aspects which makes changes in roles and
responsibilities of workers (Zidar and et. al, 2016). Manager has to make changes in their actions
through which positive points can be improved and negative can be effective for making changes
in roles and responsibilities of workers. SWOT analysis is effective for knowing internal forces.
This helps to know about growth prospects and competition in industry. SWOT analysis of
Waitrose is discussed as under-
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Strength
 They have better medium to deliver
goods. This is effective for creating
good image in market.
 They have many outlets which provides
cost benefits to customer.
 Wide range of worker. Good image and loyalty factor which
has positive impact on sales.
Weaknesses
 While selling product there is less
margin which is biggest weakness for
Waitrose.
 They have less promotional events as
compared to competitors.
Opportunities
 They can work in other fields.
 They must focus on publicity through
word to mouth as it is cheap and
personal too. They must open their outlet in various
developing nations.
Threats
 They are behind in competition at
national as well as international
platform.
 Economic condition of Waitrose is
weak.
P6 Interrelation of strengths and weaknesses with external macro factors
For analysing macro environment, PESTLE analysis is there. These points are related
with strength and weakness of company (Cascio, 2018). There are possibilities that due to use of
PESTLE manager may get diverted from their main targets and goals. Strength and weakness of
PESTLE analysis is discussed as under-
Basis Strength Weaknesses
Political- In this factor there is
governmental interference.
This means there is
governmental involvement
which affect business
operations.
This is strength as this helps to
make activities as per
government norms. Waitrose
pays tax on time and effective.
As Waitrose as many outlets
so it is easy to deliver goods
from one place to another.
Weakness is as this affects
business operations adversely,
because manager has to work
according to government
norms otherwise this affects
image of Waitrose. Managers
of Waitrose has to work
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according to knowledge of
various governmental policies,
this affects business
operations.
Economical- In this there is
involvement of financial
related concept. This is
effective for arranging funds
for running business effective.
There is positive impact on
operations because there is
proper budget for every
activities. This is effective for
analysing market and select
best source for approaching
them. Waitrose provides good
services which are significant
for growth of business and
funds are easily available in
market.
When Waitrose adopt source
from external parties
confidentiality of ideas gets
disrupted and hence there are
possibilities of discussion of
ideas. There is control of
external parties too, in
business operations. Due to
lack of promotional events
stake holders are not aware of
changes in products and
services of Waitrose.
Social- In this factor people
customer are involved. As per
this factor, it is essential that
company has to work
according to demand of
society.
When Waitrose consider social
factor, then they perform
business operations as per
trend of market. This is
effective for growth of
company and this helps to
make good image among
customers. Waitrose has
varieties of product according
to need and demand of
customer, so there is need of
make strategies accordingly.
While considering social
factor, this is costly and this
affects business of company.
There is use of factors which
are effective for analysing
market and modifications s
required in product. This
affects quality of product and
services. There is requirement
of changes in policies this
affects working style of
workers and hence manager
has to take care of actions.
Technological- As there is Through technological updates Sometimes workers are not
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need of various techniques
such as punching system of
workers, packaging, billing
system, data entry, etc.
there are various changes
which are effective for making
alterations in business
opportunities. There is use of
factors which are competent to
current market. To accept
technological changes, there is
need of proper planning and
decision making. Waiting and
processing time will reduced
for customers as well as
employees.
ready to work under changed
techniques as they think there
is danger to their job or about
results if they are not able to
learn new techniques. Working
under changed may has
negative impact on quality of
product and services. When
there is change in technology
of competitor then there is
requirement to accept changes
by Waitrose also, this increase
cost of training and acquisition
of technology.
Legal- In legal factor, there is
use of techniques which are
ethical and as per legal norms.
This is effective for making
decision to run business as per
rules and regulations.
When Waitrose is working as
per legal norms, then this is
effective for growth of good
will in market. Due to change
in rules and regulation top
level managers has to alter
their decisions which are
beneficial for growth. This
helps to reduce governmental
interference and make good
image.
There are changes in legal
norms, so manager has to work
accordingly. So there are
possibilities of change in
working style, this affects
business goals and targets. Due
to difference in legal issues of
various countries, employees
has to alter their policies.
Environmental- This is one of
the factors which consist of
surrounding elements of
business. There is difference in
climatic components of
Waitrose works according to
season and this helps to
increase satisfaction to
customers by maintaining
quality of product.
There is negative impact also
of this factors. As grocery
items gets decayed due to
excess coldness or hotness.
Hence managers ah to take
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various factors, so managers
has to consider it.
decisions related to storage of
product.
CONCLUSION
Above discussed fact helps to enhance knowledge about business and its surrounded
environment. This is effective for getting knowledge about use of factors which are competent to
market. PESTLE and SWOT analysis are techniques which ha re used by company to make
policies through which changes can be implemented accordingly. There are many competitor's in
retail sector, so manager has to select approaches through which they can perform activities
effectively. There is positive as well as negative impact of techniques which are used by
company. It is important to work according to customer demand, so there will improvement in
quality of product and services. There are many activities which are working to achieve targets,
so from achieve discussion it is clear that there must be linkage between various departments.
This helps to reduce time as well as creates good environment in enterprise. Weakness of
association must be reduced with the help of tools which is significant for growth of company.
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