Business and Business Environment Report: Types, Functions, and Impact

This report provides a comprehensive analysis of the business environment, focusing on different types of organizations, their legal structures, and their functions. The report examines the private, public, and voluntary sectors, using Cadbury, BBC, and Oxfam as case studies. It delves into the impact of the macro and micro environments on business performance, exploring the relationships between organizational functions such as finance, human resources, marketing, and production. The analysis includes an evaluation of internal capabilities and external factors, highlighting the strengths and weaknesses of each organization. The report also discusses the size and scope of these organizations and how they relate to their objectives, ultimately providing insights into how businesses operate within their environment. The report is structured to address key aspects of business environments and is useful for students studying business and related fields.

Business and business
Environment
1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types and purpose of organisation and their legal structures.................................3
P2. Size and scope of different types of organisation..................................................................7
TASK 2............................................................................................................................................8
P3. Relationship between different organisational functions and how they link to
organisational objectives and structure........................................................................................8
TASK 3............................................................................................................................................9
P4. Identify and analyse the impact of macro environment on business.....................................9
TASK 4..........................................................................................................................................11
P5. Evaluate the internal capabilities and factors of micro environment that affect business and
its performance..........................................................................................................................11
P6. Critically analyse that affect of macro environment on internal factors of organisations...12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
2

INTRODUCTION
Business environment is a sum of all factors which have the ability to influence how the
company will work and on what basis an organisation will be affected (Boone and et.al., 2019 ).
The elements like innovation level, suppliers, supply and demands, customer needs, employees
expectations, social trends, economic changes as well as political alterations. Business
environment is a key aspect which can positively regulate the success rate of any company. The
forces which have the potentiality to make up business environment are its consumers,
competitors, suppliers, economic status, investors and governmental policies. The altering need
of clients and new level of creativity in market are all essential part of business environment.
Cadbury is a British multinational organisation owned by Mondelez since 2010. It is a
confectionery company which is founded by John Cadbury on 1824 in England. An organisation
is well known for its dairy milk chocolate, roses selection box, crème egg and many different
confectionery items. The report will focus on identifying relationship of different functions of
organisation along with its size, type and scope. The impact of macro environment either
negative or positive will be discussed which will be followed by describing weakness and
strengths of specific business. A basic organisational purpose of enterprise will be also
mentioned in this report.
MAIN BODY
TASK 1
P1. Different types and purpose of organisation and their legal structures
Organisation can be describe place where group of people are working together for
accomplishing set goals and objectives (Beynon-Davies, 2013). This includes a proper business
process and systematic way of conducting various task. There are different types of organisation
that is performing business activities.
Private sector: This includes those organisation that is working for earning more profits.
Company in private sector is providing products and services to potential customer and focus on
increasing sales. Private company is focusing on increasing market share and develop strong
brand image. Example of private sector organisation is Cadbury.
3

Purpose – The of private organisation to enhance sales of products and services for
gaining more profits. Cadbury company is providing high quality products in order to meet with
customer needs.
Legal Structures: Cadbury business is based on corporation business structures. There
are different types of private sector legal structure is mention below. Partnership – This refers to formal agreement and arrangement between two or more
people that is working to achieve common objectives (Namada, 2018). In partnership all
partners are liable for sharing business responsible as well as profits and loss occurred. Sole proprietorship – This is consider as the simplest form of business structures as this
type of organisation is run and managed by single person only. In this owner have to take
all decision relational to business for its growth and development. Corporation – This can be describe as the organisation that is performing business
activities at different parts of the world. Corporation company includes large number of
people that is performing business task at global market area.
Public sector – This includes all those organisation that is run and manage by
government. In this type of organisation government and political party play crucial role as well
as provide appropriate funds to perform different activities of organisation. Public sector
organisation is completely owned and managed by government. Public sector company is
managed by government authorities and this type of company is offering its servicies to
particular area. Public sector company example is BBC.
Purpose – The main purpose of public sector organisation is to provide different products
and services for well fare to the citizen of particular nation. BBC company purpose is to provide
appropriate news and information to customers.
Legal Structures: This is a systematic procedure that will help in smooth function of business
activities. BBC company is based on central government legal structures. Local government: Company which follow local government culture will is considering
all rules and regulation that is developed by local authorities. In this most of the business
decision are taken by local government body. Central government: Central government organisation includes all those that is
completely run and managed by organisation. This organisation is providing services to
whole nation.
4

 State government: Company of state government includes follow all rules and policies
that is created by state government. This organisation offering its products to citizens of
particular state.
Voluntary Organisation sector: This sector includes all those companies that is performing
business activities for providing benefits to citizen of society (Haider, 2014). There are several
voluntary organisation that is collecting funds from different sources in order to meet with the
needs of society and its people. Oxfam is an example of voluntary organisation.
Purpose – The purpose of voluntary company is to resolve issues and problem of society
as well as providing effective products or services that will lead to meet with the needs of
society. Voluntary business does not aim at earning profits and revenues. This type of
organisation is also known as non profit organisation.
Legal Structures: Voluntary company legal structures is classified into charity and trust
association. Charity – In this business structures voluntary company is performing business task by
collecting funds through charity. This type of organisation is collecting funds and other
resources by charity. In this individual are contributing funds from their own will in order
to solve issues of society. Trust – In this trustee of organisation is contributing their funds and resources in order to
effective functioning of voluntary company. Trustee refers to a person that is providing
fund of company so that company can conduct task and activities in better manner.
Basis Cadbury BBC Oxfam
Vision Cadbury vision is to
enhance the brand
image by working
together and providing
high quality products
and services to
customers.
Vision of BBC
company is to become
the most creative new
broadcaster company
in all over the world.
Its vision is to create a
world with high living
standards.
Mission Mission of Cadbury
company is to become
BBC mission
statement includes to
To meet with the
requirement of needy
5

the most trusted and
preferred organisation.
To develop strong
relationship with
customers and increase
loyalty of customers.
act as the public
interest and enhance
public relationship by
providing high quality
information and
services.
people.
Products and Services The main products and
services of Cadbury
company is Dairy
Milk, Bournville, 5
star, Perk, Tempration
and many more.
This company is
broadcasting new and
information national
TV channels, regional
TV channels and radio
services also.
Its main services are
voluntary helps of
person in need.
Goals and Objectives The aim goals of this
company is to enhance
performance of
employees. So that
they can conduct
business task in better
manner.
BBC goal is to become
the most trusted and
valuable company is
market area by its
effective services.
To resolve issues of
society and provide
better services.
Stakeholders Key stakeholders of
Cadbury company is
customers, employees,
shareholder etc.
BBC stakeholders
include government,
employees, customers
and so on.
Government, trustees,
voluntaries and so on.
Legal structures Legal structures of
cadbury company is
Corporate. This
company is conducting
business operation in
different part of world.
BBC legal structures is
centre government.
Legal structure is
Trustee based.
6

P2. Size and scope of different types of organisation
There are different types of organisation and each organisation is very different from each
other. Business are majorly classified into micro, small, medium and enterprise business. This
will affect its size as well as scope. Difference between size and scope of different organisation
is mention below.
Basis Micro Small Large Enterprise
Size This type of
business has very
less size and they
are operating to
specific area only.
This type of
business has
small shop that is
located in local
market area. this
types of business
is providing
services to local
customers only.
Small
organisation are
basically larger
that micro
business and they
are performing its
business
functions in
particular region.
This types of
business includes
very few
employees.
This types of
business are
performing task
and activities in
different part of
the world. large
organisation has
more than 500
employees with
required skill and
qualifications.
This types of
business is
operating to earn
more profits.
Enterprise
business is
developed with
the motive of
providing unique
products and
services to
customers. this
types of company
is larger in size
and operating in
different areas.
Scope The scope of
micro business is
to run
organisational
activities
effectively so that
owner can full fill
basic
Small business
companies has
larger scope as
compare to micro
business. This
types of business
are performing
activities in order
Larger
organisation
scope is to
enhance business
activities in order
to accomplish set
objectives. This
types of
Scope of
enterprise
business is to
development of
strong
relationship with
customers as well
as earn profits by
7

requirements of
living.
to develop strong
relationship with
customers as well
as enhance
business
operations.
organisation aim
at gaining
competitive
advantage over
other rival
companies.
meeting with
needs and
requirement of
customers.
Basis Cadbury BBC Oxfam
Size and Scope Cadbury is
multinational
companies which has
large size and scope of
organisation. This
company has more
than 500 employees
that is working in
different part of the
world.
This company has
larger size and scope
and its is providing its
products and services
in different area all
around that globe. It
scope is to become the
most trusted new
telecaster .
It is a non profit
organisation that is
operating in specific
areas. Its scope is to
meet with the needs of
society.
TASK 2
P3. Relationship between different organisational functions and how they link to organisational
objectives and structure
It is crucial for organisation to interrelate its different functions so that set objectives of company
could be timely achieve. There are various functions and department of Cadbury company
that is performing business activities in better and effective manner. Key departments of
Cadbury company includes finance, human resource, marketing, production, sales,
information technology and many other products. interrelation of these department for attain
organisational objectives are mention below.
Finance and human resource
8

There are various functions of organization that is related to finance and human resource
department. It is crucial for both of these two department to work collaboratively in order to
achieve set goals of company (Grant, 2016). Finance department of Cadbury company is
providing appropriate budgets to different departments so that they can perform task in
effective manner. Human resource team of respective company is providing training to
employees of finance department so that they can conduct business task and activities in
correct or accurate way. It has been determined that interrelation of human resources and
finance department will lead to have great impact on business operations and productivity.
Marketing and production department
It is crucial for Cadbury company to develop and create products which is as per needs of
customers. marketing department of respective organisation is responsible to identifying
market trends and customer preferences. This will support production department to create
products as per market demand and supply. So it is determined that interrelation and
connection of both these department will help in accomplishment of Cadbury objectives
and goals. When both of these two departments are correctly linked will lead to effective
performance of business process as well as creation of high quality products as per market
requirement. This will aid in enhancing sales and revenues of this respective company.
TASK 3
P4. Identify and analyse the impact of macro environment on business
Macro environment of business is consist of various factors that will lead to have direct
or indirect impact on growth of organisation. it is crucial for respective company to analyse and
evaluate different factors of external business environment in order to perform business activities
in effective and efficient manner. For this PESTEL analysis is mention below in context of
Cadbury.
Political factor – This consist of different set of rules that is developed by political party and this
will lead to have direct impact on performance of respective company. Political factor includes
trade policies, taxation, restriction on import and export of goods, political stability and
instability. All of these political factor will lead to have impact on performance of organisation.
 Positive impact – It has been identified that UK country has more stable political
condition (Rosenbach, 2018). This will be supportive in smooth functioning of Cadbury
business operation.
9

 Negative impact – This company is developing products which includes large amount of
sugar. So concern of government towards obesity and implement of new rules will lead to
have negative affect major functions of organisation.
Economical factor – This external factor includes economical condition of nations in order to
perform business operation is appropriate manner. Economical factor consist of interest rate,
exchange rate, inflation, economic condition, GDP and so on. All of these factors will affect
business and its operations.
 Positive impact – UK nation has one of the fastest growing economic rates. This can be
consider as advantage for Cadbury company as this helps in enhancing sales and profits
of business. Negative impact – UK country includes more interest rate and exchanges rate that will
lead to have negative impact on operation and manufacturing process of Cadbury.
Social factor – This factor will lead to major impact on business and it includes attitude,
population size, behaviour of customer and many other factors. It is essential for respective
company to understand requirements of customers.
 Positive impact – Cadbury company is developing products as per need of customers so
it will have positive impact. Negative impact – Customer choose and preferences are changing continually so this
will have negative effect on sales of products.
Technological factor – This factor is important to enhance business process by using new and
advance technology in organisational activities. Technological factor includes more advance and
updated technology to perform business task.
 Positive impact – UK country has one of the most advance technology and this will help
Cadbury company to gain competitive advantage over other rival companies. Negative impact – It is very costly for Cadbury to use more updated and advance
technology in its business process. This will have negative affect overall profitability of
respective company.
Environmental factor – This factors includes climate condition, weather, pollution and other
environmental factor. This will have positive and negative affect on Cadbury business
performance.
 Positive impact – Cadbury company is using new tool and techniques to reduce pollution
and provide environmental friendly products.
10

 Negative impact – Changes in climatic condition will lead to affect on supply or delivery
of product.
Legal factor – There are several laws and legislation develop for betterment of employees and
this will have affect of performance and profitability of Cadbury company.
 Positive impact – This organisation is providing products and services by considering
health and safety of consumer.
 Negative impact – Increase in wages and salary act will affect the profits of respective
company in negative manner.
TASK 4
P5. Evaluate the internal capabilities and factors of micro environment that affect business and
its performance
It is crucial for organisation to analyse its internal capabilities as this will help in better
decision making. Cadbury company performance and productivity will be affected by the micro
and macro business environment. So it is crucial to analyse VRIO and SWOT model for better
decision making.
VRIO Analysis
Resources Valuable Rare Imitate Organized
Human
Resource
✓ - - -
Infrastructure ✓ ✓ - -
Technology ✓ ✓ ✓ -
Supply Chain ✓ ✓ ✓ ✓
Valuable- In this all those resources that is valuable to organisation as well as help in
accomplishing of set objectives. Valuable resources of Cadbury company are its employees,
infrastructure of business, updated technology and supply chain networks.
Rare- This includes infrastructure, technology and supply chain system of Cadbury company. all
of these are rare resources and this helps in gaining competitive advantage over other rival
companies.
11

Imitate- it includes those resources which cannot be imitated by any other rival company.
Cadbury company is using innovative technology as well as effective supply chain network that
will help in conducting business activities in better manner.
Organized- Supply chain network of Cadbury company s very strong as well as organized. This
helps in timely delivery of products to potential customers and developing strong brand image in
market area.
SWOT Analysis
Strength Weakness
This company is providing its products and
services to many years and it has developed
strong image in market. Cadbury is
providing large variety of products as per
needs and wants of customers. This is one of
the leading company is sector and have
fantastic brand loyalty.
Cadbury company is not able to manage its
resources and funds in appropriate manner.
This lead to have negative affect on overall
performance of respective company.
Incapability to effective manage financial and
other resources is its main weakness. This
company is not able to proper advertise and
promote products.
Opportunity Threat
This company needs to increase the skills
and capability of employees. This will help
in appropriate management of all resources.
This organisation should use new tools and
techniques to promote products to potential
customers. There are various opportunity for
respective company to expand its market
share.
This company has major threat from rival
organisation that can affect its profits.
Increase in health consciousness amongst
customers will lead to reduce the intake of
chocolates. Cadbury company has treat form
changes in rules and regulation of
government.
P6. Critically analyse that affect of macro environment on internal factors of organisations
There are different factors that will lead to have major impact on business as well as its
performance. It is crucial to analyse these factors in order to take better and accurate decision
that will hoes in accomplishing of objectives. In order to identify impact of Cadbury external
12