Business and Business Environment: Task Analysis and Report

This report delves into the multifaceted aspects of the business and its environment. It begins by defining business and the factors that influence its growth and profitability. The report then explores different types of organizations, including public, private, and voluntary sectors, along with their legal structures and purposes, using the North London Chamber of Commerce and Enterprise (NLCCE), Ford UK, and The National Trust as examples. It further examines the size and scope of these organizations. The report then analyzes the relationship between various organizational functions, such as purchase, research and development, finance, IT, marketing, and HR, and how they contribute to organizational objectives and structure. The impact of the macro environment on business operations is identified, supported by specific examples. Finally, the report conducts internal and external analyses of specific organizations, pinpointing their strengths and weaknesses, and explains how these interrelate with external macro factors, providing a comprehensive overview of business operations within their environments.

Business and business
environment

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1Explain different types and purposes of organizations; public, private and voluntary sectors
and legal structures......................................................................................................................1
P2Explain the size and scope of a range of different types of organizations..............................3
TASK 2............................................................................................................................................5
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure.......................................................................................5
TASK 3............................................................................................................................................6
P4: Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................6
TASK 4............................................................................................................................................7
P5 Conduct internal and external analysis of specific organizations in order to identify
strengths and weaknesses............................................................................................................7
P6 Explain how strengths and weaknesses interrelate with external macro factors...................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business is an activity by which the individuals make money by selling products and
services in market. It simply an activity by which an enterprise turn into to profit making firm.
Business environment refers to the collection of internal and external factors that helps business
to grow or impact its growth. The internal factors of business environment is employees, owners,
clients, suppliers, etc. and the external factors are demand, customers, competitors, economic
changes, market trend etc. both the factors can impact the growth and profitability of business.
In this report the North London Chamber of Commerce and Enterprise(Bahoo, Alon, and
Paltrinieri, 2020) ( NLCCE) is mentioned as an public organisation. The Ford UK is selected as
an private organization and The National Trust is selected as voluntary organisation.
In this report various information about business and business environment is explained
such as different type of organisation and their purpose, size and scope of different organisation,
relationship between different organisational function and how they are linked with each other.
Furthermore, it also explained the impact of macro environment on the company, internal and
external analysis of organisation and its strength and weaknesses, at last explain how strength
and weaknesses interrelate with macro environment.
TASK 1
P1Explain different types and purposes of organizations; public, private and voluntary sectors
and legal structures.
An organization is a group of individuals who works for the same purpose and motive. It
can be an charity group, business group, an union or an corporation. Every organisation runs for
different reason and purpose. They can be profitable or non profitable organisation. Below is
explained different types of organisation and their purpose.
Public sector organization: This organization usually owned and operates by the
government for specific reason or purpose. The main motive of these organisations is to provide
services to the citizens. Usually the public sector organisation not run for the profit
maximisation. NLCCE is(Bentley-Goode, Omer, and Twedt, 2019) public sector organization
the main purpose of this organisation is to provide services and welfare to the local citizen of the
country. This organisation provide range of networking events and support survives that make
business enable to grow.
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Purpose: The main purpose of this company is to provide the services to the public and
welfare to the society and improve the living standard of the citizens.
Legal structure:
 Central government: In the public sector organisation they are fully manage and
controlled by the central government. This organizations collect funds in the form of tax
form the local public. In public sector organisation all the firms controlled, organize, and
manges by the central government.
 State government: All the public sector organisation are controlled and operate by the
state government. These organisation gets funds from the state public's tax.
 Local government: in this structure, the company are operates and controlled by the
local authorises such government vendors, municipality, local government etc. these
organization collects funds from the tax payers in local areas.
Privet sector organisation:
This organisations are controlled and run by the individual, there main motive is to
maximise profit and increase their revenues. In this organisation the government does not have
any control they run by their owners. This organisation provide various products and services to
the public in order to make more profit in their firms.
Purpose: the main purpose of these organisations it to provide the better product and
services to the public and make more profit for their firms. The aim of private service
organisations is to earn profit and become leading brand in the market. To enhance and achieve
this objectives most of the privet sector organisation use many technologies and effective
marketing strategies.
Legal structure:
 Sole proprietorship: This types of organisations are controlled and manage by the one
individual with the small amount of investment. This company do not have any control of
legal authorises. The debts and profit of these firms are the responsibility of single
individual. The motive of this organisation is to earn profit and make place in the market .
Partnership: This firms are run by tow or more individuals by making an specific partnership
contract in the company. All the partner (Cristofaro, 2020) of the company are the decision
makers for their organisation and all the profit and liabilities of the company are equally
distributed in all the partners of the company.
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Voluntary organisation: This type of organisation are the group of individuals that comes
together for the specific purpose and goal. These organisation are not profit shearing
organisation. The National Trust is an voluntary organisation it is an charity and membership
organisation located in United Kingdom.
Purpose: The main motive of this organisation is to collect charity and provide the
welfare to the citizen of the country.
Legal structure:
 Trust: Voluntary organisation is public sector organisation that run by the people who
trust them and support them by being an member of the company.
P2Explain the size and scope of a range of different types of organizations.
NLCCE: It is an independent membership organisation, this firm is represent the interest of all
the business and company towards more profit and growth. These organisation offers the
networking information and ideas to the business to gain more profit. It also helps in providing
new opportunities and creating the business growth of the company. Background: This company is London based public sector company that is the part of
business organisations. The main motive of this firm is to generate opportunities and
increase the profit of the other organization in the country. Size: The NLCCE has total 7(Draijer, 2020) employees and generate the revenue of $
28722 and also there are 7 companies are working in this public organisation. Product & services: This company provide the opportunities to the individuals for
starting new business at local, national and international level. This company helps in
maximisation of profit and welfare to the society. Vision: The vision of this company is to provide the better opportunities to business and
help them in maximisation of profit. Mission: The mission of the company is to grow in international level and make the
business enterprises expand the business globally. Objectives: The main objective of company is to provide best services and opportunities
to the individuals and help them to grow in market.
The Ford UK: It is well known privet organisation which located in UK, the company is well
established and the largest selling car and commercial vehicle brand of the country.
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Background: The company was founded in 1909, the main office of the company is in
Brentwood, England. It mainly deals in car production and large research and development
facility.
Size:The company has approximately 13,800 employees and the market of the company operate
globally.
Product & service: Company offers variety of cars and best services to their customers. It is one
of the largest brand of organisation.
Vision: The vision statement of the company explain that people working together in the
company as a lean, and global automotive leader company. Furthermore, the leadership of
automotive is based on the satisfaction level of customers, suppliers, investors, dealers and the
communities.
Mission: The mission statement of the company is to strengthen communities and provide them
better living standards. Their (Melnyk, 2019) purpose is to drive human progress through
freedom of movement.
Objectives: The main objective of ford is to become one of the most successful automotive
agency that provide best services and cars to its customers.
The National Trust: It is an charity and membership organisation located in England. The main
motive of the company is to look after the places of historic interest and natural beauty
permanently.
Background:The trust was founded in 1895 by Octavia Hill,and robart hunter. It was establish to
promote permanent preservation for the benefit of national lands.
Size:There are approximately 5.6 million members in this organisation.
Product & services:They provide the welfare of historical place and the nature.
Vision:The vision statement of company explain that they are willing to make more membership
in their organization.
Mission:The mission stalemate of company explain that they works towards providing
opportunities and capabilities development of person. Facilitate and development of awareness
of environmental development.
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TASK 2
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure.
There are many departments in an company that perform the various activities by the
interrelation between each other. They help company to grow in the market and successfully
make effectively productivity for the company. In the context of NLCEE, company is public
organisation and the main purpose of the organisation to provide better opportunities and the
growth of the business of individuals. So it is very important for the company to have
coordination between all the departments. The various interrelation of the company's function is
explained below: Purchase and Research & development department:In purchase department the
purchase mangers ensure that they buy the best quality of material for the company and
mange the proper utilization of all the departments. On the other hand the research and
development function of the firm helps in providing right information about the
effectiveness of services and also analyse the market situation for the company. These
both departments helps NLCEE (Osiyevskyy, Shirokova, and Ritala, 2020) to purchase
the raw material and goods according to the market situation. It provide the best
information about how the new technology and innovation can change the profitability of
the company. Finance and informational technology department:The finance department of the
company handle all the inflow and outflow of the funds in organisation. It also ensure
that all the departments of the company gets proper funds for the activities and task they
re doing. On the other hand technology department of the company helps in proper
functioning of all the machinery and equipments in the company. IT department of
company also handle the social platform of the company so that they can make effective
image in the market. Functioning of both the department in the NLCEE is very important
for the growth of the organisation.
 Marketing and HR department: Marketing is an very essentials part of business that
helps in promotion of product and services of the company. It ensure the better
satisfaction level of company. On the other hand human resource department is the
backbone of the organisation that help the organisation to grow with the effective
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working and provide best productivity. These functions of NLCEE are work together to
provide the company better success in the market and help them to achieve goals and
targets.
TASK 3
P4: Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
The macro environment involve all the external factors that have an impact on the
performance of the company or business. To understand these factors company can use PESTEL
analysis to examine all the external factors that have an impact on the performance of the
organisation. Below is the detail explanation of all the extranet factors that have an impact on the
performance of NLCEE.
 Political factors: This factors refers to the impact of government's rules and regulations
on the particular business. In UK the political environment is stable it have an positive
impact on NLCEE. The policies for the company is normally fair and have positive
impact on the society of the country. However in UK (Paudel, 2019) the Brexit have an
impact on the performance of the company and impact. But company is already well
known and well established so it could help the business of company. Thus, the political
factors of UK can impact the business of receptive company.
 Economical factors: This factors refers to the change in economic policy and trend that
can impact the business of particular organization. In the context of UK there is strong
economic situation of the country. There is also high level of GDP and also an changing
economic situation which can impact business of public sector organisation as NLCEE.
There are many benefits for the NLCEE because of high level of population in the
country. Also they can provide more opportunities to the individuals that help the country
and the business of NLCEE(Ren, and Jackson, 2020) high growth in the market. Thus,
the economic situation of UK is best for the business of respective company. It also help
the company to expand its business in other countries also.
 Social factors: This factors refers to the different social culture of the country that have
an impact on the performance on the business associations. In the UK people have
different culture and belief that can impact respective organization NLCEE. The high
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living slander of the country's population helps the business of NLCEE, company can
promote its organisation by giving opportunities to the different culture people and they
can make their living highly effective.
 Technological factors: This factors refers to all the changes and technology innovation in
the market that influence the businesses. In the context of the (Umarkhodjayeva, 2019)
NLCEE the technology factors of UK have positive impact on its performance. Because
company use different and innovative technology to influence the members of the
company. They also use these technology to connect with more people and make their
membership in their organisation.
 Environmental factors: This factors refers to the rules and regulation of government's
policies to protect the environment of the country. In the context of (Rocha, Fernandes
Narcizo, and Gianotti, 2019) NLCEE the company already use many eco friendly
techniques to protect environment of country. So there is no negative impact on
performance of company. They also help the country by the development of healthy
environment that could help the country for better growth and sustainability.
 Legal factors: These factors refers to the legal allegation of the government on the
particular industry. In the context of NLCEE, company follow all the rules and regulation
of government that helps them to grow in the market and have stable growth.
TASK 4
P5 Conduct internal and external analysis of specific organizations in order to identify strengths
and weaknesses.
To analyse internal and external factors of organization below is the SWOT analysis of
NLCEE and Ford UK is explained:
SOWT analysis of NLCEE
Strength
The main strength of NLCEE organization
is the image of company and they also have
huge level of members in the firm. It helps
the organization to gain the trust of
individual and help them to grow in the
Weakness
The organization have huge members in
their company it can reduce the possibilities
of the individuals that they can make
entrance in the firm. There is also rules and
regulation for the public sectors that can
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market. They also provide international
growth to the individual’s business that
makes their organization more profitable.
impact the business of NLCEE. Thus , there
are many factors that can impact the
business of NLCEE so to deal with this
factors company can improve capabilities of
their market and international business.
Opportunity
UK has huge population of young
individuals so NLCEE have (Schaltegger,
Hörisch, and Freeman, 2019) the
opportunity to attract more young talent in
their organization and increase the growth
of company in national and international
level.
Threat
There are many political issues that can
reduce the growth of the organization and
also increase the threats for the company. to
deal with these threats company can follow
the rules and regulation .
SOWT analysis of The Ford UK
Strength
The company has strong brand image and it
is a biggest strength of the company. They
also have the strongest(Uddin, Hossain, and
Dhar, 2019) supply chain network in all
over the world. Company also follow the
most effective innovation process in their
cars that help the organization to gain more
profit shares in the market.
Weakness
Company have high level of competitors in
the market and the cost of product is also
high compared to the other competitors that
make the company less productive in the
market. Changing trends in international
market is also make the high risk for the
business of Ford organization.
Opportunity
Company can make global presence through
the market penetration. Company can also
apply the cost reduction strategy so that they
can make more profit in the market and gain
Threats
There are various new entrance of high tech
firms in the market that make the
competition level of the company high. The
fluctuation in oil prices also reduce the
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competitive edges. profitability of the company.
P6 Explain how strengths and weaknesses interrelate with external macro factors.
To relate the strength and weakness of the NLCEE to the external macro environment below
is detail explanation of PESTEL analysis of respective company.
 Political: From the above SOWT analysis of NLCEE, it can be understand that there
are many political changes that can impact the business of the respective company.
 Economical: The economy changes do not have huge impact on the performance of
NLCEE but it can impact the future business of the company.
 Social: There is ( Tseng, Yi, and Yeh, 2019) various socio cultures in the country
that make opportunity level for the organization high. It can also help the company to
understand the needs of the business persons in the country.
 Technological: The technological factors have impact on the business of the
company by which the organization also get profit and increase the profitability level
of the company.
 Environmental: The company is using eco friendly services that make the company
more profitable and also increase the level of customers attract towards brand.
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CONCLUSION
From the above given information it can be summarise that study of business environment
help the company to increase its profitability and help in increase the revenue of the company.
There are different types of organization that have different purpose and different processor to
make profit. The PESTEL analysis of the company helps in understanding the all the external
factors that have an impact on the business. SWOT analysis of the company helps in better
understanding the strength and weakness of the organization.
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REFERENCES
Books and Journals
Bahoo, S., Alon, I. and Paltrinieri, A., 2020. Corruption in international business: A review and
research agenda. International Business Review, 29(4), p.101660.
Bentley-Goode, K.A., Omer, T.C. and Twedt, B.J., 2019. Does business strategy impact a firm’s
information environment?. Journal of Accounting, Auditing & Finance, 34(4), pp.563-587.
Cristofaro, M., 2020. E-business evolution: an analysis of mobile applications’ business
models. Technology Analysis & Strategic Management, 32(1), pp.88-103.
Draijer, C., 2020. Best practices of business simulation with SAP R/3. Journal of Information
Systems Education, 15(3), p.5.
Goldberg, K. and Christopher, K., 2019. Community Oriented Policing: Security in the
Domestic Counter Terrorism Environment. Journal of Business and Behavioral
Sciences, 31(1), pp.114-124.
Melnyk, M.I., 2019. Formuvannya biznes-seredovyshcha Ukrayiny v umovakh instytutsiynykh
transformatsiy: monohrafiya [Formation of the business environment of Ukraine in the
context of institutional transformations] Lviv: IRD NAN Ukrayiny,–568 p. Надійшла
(received) 14.05.
Osiyevskyy, O., Shirokova, G. and Ritala, P., 2020. Exploration and exploitation in crisis
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Business Research, 114, pp.227-239.
Paudel, S., 2019. Entrepreneurial leadership and business performance. South Asian Journal of
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organizations. Human Resource Management Review, 30(3), p.100691.
Rocha, C., Fernandes Narcizo, C. and Gianotti, E., 2019. Internet of management artifacts:
Internet of Things architecture for business model renewal. International Journal of
Innovation and Technology Management, 16(08), p.1950062.
Schaltegger, S., Hörisch, J. and Freeman, R.E., 2019. Business cases for sustainability: A
stakeholder theory perspective. Organization & Environment, 32(3), pp.191-212.
Seetharaman, P., 2020. Business models shifts: Impact of Covid-19. International Journal of
Information Management, 54, p.102173.
Tseng, H., Yi, X. and Yeh, H.T., 2019. Learning-related soft skills among online business
students in higher education: Grade level and managerial role differences in self-regulation,
motivation, and social skill. Computers in Human Behavior, 95, pp.179-186.
Uddin, M.T., Hossain, N. and Dhar, A.R., 2019. Business prospects and challenges in Haor areas
of Bangladesh. Journal of the Bangladesh Agricultural University, 17(1), pp.65-72.
Umarkhodjayeva, M., 2019. The concept of development of management of small business
based on institutional reforms. Архив научных исследований.
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