Business and Business Environment: Analysis of Organizational Factors

This report provides a comprehensive analysis of the business environment, examining various organizational types including private, public, and voluntary organizations. It delves into their purposes, legal structures, and the impact of the macro environment on business operations. The report explores the size, scope, and objectives of different organizations, such as Aviva and CPS, and analyzes the interrelation between organizational functions like IT, finance, marketing, and sales, and their alignment with overall business objectives. Furthermore, it investigates internal organizational strengths and weaknesses and how these relate to external factors, offering insights into strategic management and business development. The report also discusses the impact of global business environments and provides classifications of companies based on size, from micro to transnational enterprises, to illustrate the breadth and depth of business operations.

Business
and
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 : Different types, purpose and legal structures of organisation.............................................3
P2 : Size and Scope of the organisation......................................................................................5
TASK2.............................................................................................................................................7
P3 : Inter-relation between functions of organisation and its link with objective......................7
TASK 3 .........................................................................................................................................10
P4 Impact of macro environment on operations of business....................................................10
TASK 4 .........................................................................................................................................12
P5 : Internal Analysis of organisation to identify strengths and weaknesses...........................12
P6 Interrelation between strengths and weaknesses with external factors................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business environment exists as a procedure that is concerned of all external and internal
factors in which an organisation perform their operations. It undertakes employee's, customer's,
supply and demand of business operations that leads organisation to accomplish their goals in
minimum time period. The main motive to understand business environment is to satisfies the
needs of customer's in proper manner. According to the given scenario the an individual(Mr.
Barclay) recruit professional to understand the market conditions of other country. The main
motive of organisation is to increase their market share by enhancing and expanding business
operations into other countries. This existing report highlights on different organisation such as
public, private and voluntary (Bocken, Rana and Short, 2015). Moreover, its highlights on
mission, vision, scope, size and objectives of organisation are monitored to understand the
impact of organisation. Along with this the impact and influence between different organisation
will also be covered in this report. In the last, relationship as well as activities of organisation are
aligned with each different activities of organisation that leads organisation to achieve common
goal.
TASK 1
P1 : Different types, purpose and legal structures of organisation
Companies or organisation are categorized into various categories on the bases of their
motives. Like profits, better services, welfare of society and many more as per their scope, size
and purposes. Different types of organisation are as follow:
Private Organisation- Private organisation are controlled by the private organisation that
can be an individual, partnership or association. In private organisation funds are managed by
organisation with their personal resources and sources. Aviva is an international organisation
which is performing its business at global level in the insurance industry that make decisions and
arrange finance for organisational goals (Bull and et al., 2016).
Purpose- The major purpose of an organisation is to generate long term profits by
generating more value in their products. In context of Aviva the main motive of management is
to get long term benefits.
Legal Structure of Private Organisation :

 Sole Proprietorship- Sole entrepreneurs manage their business operations and take all
essential decisions on individual basis. So the individuals who manage and control
business are liable for the profits and liabilities of organisation. Partnerships- With the partnership businesses organisation are managed and owned by
more than two partners. In the partnership style both of the management parties decided
to share mutual profits and loss for organisation. Partnership deed is one of the major
aspect for managing a business with partnership method.
 Limited Companies- Company refers to a separate legal entity that demonstrate the
difference between owner and manager of the organisation. Limited companies is an
example of the limited companies (Colenso, 2012).
Public organisation- Companies which are managed and controlled by the government
are defined as public organisation. The main motive of public organisation is to provide better
services to the public. In order to complete the operations effectively management arrange funds
with the help of government. Crown perspective services is the organisation which is control by
government of UK.
Purpose- Major purpose of the organisation is to perform their work to uplift the society work
performance.
Legal Structure of Public Organisation : Central- They are the apex body for an organisation that control economy by offering
them into different department. All of them work to provide better services to customer's. State- State organisation are responsible to perform and manage the work within a
particular country. The main motive of them is to provide better services with in the
organisation. Local- This authorities of organisation is to provide better services with in a local
government. It results that it is easy for individuals to perform operations at local level.
Voluntary Organisation- It refers to the organisation that manage and perform their functions
for the welfare of society. The main motive of voluntary organisation is to deal with the specific
issues within a society. In the present scenario, cancer research is an appropriate example of
voluntary organisation (Deasy and et. al., 2016).
Purpose- Voluntary organisation work with the purpose of providing assistance and to overcome
from the issue by which organisational performance is impacted.

Legal structure of Voluntary organisation : Trust- Voluntary organisation manage the property, land and other asset with motive of
providing and managing funds for particular purpose.
 Unincorporated Association- Under this organisation individuals are voluntary and on
self-basis perform the roles to increase welfare of society.
Development of Global business environment :
Majority of the current organisation are performing their work at global level due to
which conditions or environment are changing with rapid speed. Such as difference in taste,
preference of customer's (Ehret, Kashyap and Wirtz, 2013). This refers with the development of
laws at international level it is easy for organisation to perform their work at global level.
P2 : Size and Scope of the organisation
Private organisation- Aviva plc is a multinational organisation that is managing their
operations at international level. It was founded by Sir Adrian Montague and the main focused of
organisation is to provide services in life-insurance. Moreover, there are more than 30,000
employee's are engage in organisation. Along with this, they are performing their work in more
than 20 countries.
 Size- In the present scenario, size of Aviva is too large and they are performing their
work at multinational level.
 Scope- Aviva is facing wide opportunities in the existing market of organisation. This
refers that there are various task are performed by management in order to cover the large
market.
 Objective- The objectives of private organisation is too increase the profits for
organisation. Similarly, Aviva is also focused on enhancing sale and profits of its
products.
 Vision- Vision of Aviva is to increase their market share by offering their products
among different nation (Erasmus, Strydom and Rudansky-Kloppers, 2016).
 Mission- For accomplishing the vision management is more concerned towards deciding
beneficial scheme for customer's.
Public organisation- CPS (Crown perspective service) is an organisation that is
performing their work at global level. The main motive of them is to collect lands as well as

getting better results by solving the issue which are faced by society. Their are more than 7,800
employee's are engaged in service of CPS that complete its task under government of UK.
 Size- CPS is medium in size because they are performing their work only in UK
premises. Moreover, due to their regular operations the size of its market is increasing
with rapid speed.
 Scope- Market of UK is open for the new business ideas and residents, so in context of
scope it is also medium in size due to their regular operations.
 Objective- The main goal of the CPS is too overcome from the challenges and criminal
cases that are happened in state or area (Georgescu and Popescul, 2015).
 Vision- To remove the crime from the major areas of the country in order to ensure safety
of individuals.
 Mission- For accomplishing the vision of CPS, government is supporting the department
by providing better support to organisation to secure the safety of individuals.
Voluntary organisation- Cancer research is the organisation which is selected as
voluntary organisation in this research. Their are various task are performed by management of
Cancer research such as CSR practice, health check-up, distribution of essential goods etc. as
they all are performed with motive of benefiting of society.
 Size- Their are more than 100 members and volunteers are engaged in the operations of
cancer research that are performing their role to improve the standard of society.
 Scope- Due to unhealthy foods and items the heath of individuals to perform their work
at global level. So unintentionally the scope of organisation is impacted, it results it is
easy for management to perform its work at global level.
 Objective- Objective of the cancer research is reduce the cancer issue at a large level.
This is also used by management to perform its task with appropriate manner.
 Vision- The vision of the cancer research is to commit better results for the society by
generating better commitment towards its stakeholders (Häuberer, 2014).
 Mission- With in the context of organisational mission, their motive is too improve the
overall health of individuals.
All the organisation are categories on the bases of various amount that is invested by
organisation for the purchase of their raw-materials and equipments. Further, it is divided into
different parts which are mention as follow:

 Micro enterprise- Micro business refers to those organisation which perform their
operations with the help of 10 employee's. Along with this their turnover is up-to 2
million.
 Small enterprise- In a small organisation 50 number of employee's are engaged to
perform their operations. In context of turnover of small business it is up-to 10 million.
 Medium enterprise- Both the turnover as well as number of employee's is more in
medium-sized enterprise (Hillary, 2017). It governs that more than 250 employee's are
engaged in organisation with a turnover of 50 million.
The companies on the basis of size can also be classified as :
 International companies- Global and multinational organisation are recognised by their
number of operations as they perform its operations in more than two countries.
 Multinational companies- The activities and actions that are performed by management
in more than one country. Vodafone is an example of multinational company.
 Global companies- The global organisation are performing their work in origin country
as well as in one other country i.e. tesco pc.
 Transnational companies- This organisation are performing their work at global level
such as Mcdonald's in different countries but they not made a particular country as a
home.
TASK2
P3 : Inter-relation between functions of organisation and its link with objective
Their are various task are performed by the management of all organisation it is
considered that all of its functions are considered its essential aspects such as time, resources,
manpower and many more (Huang and et. al. 2013). Along with this departments are based on
each other on different bases which are mention as below:
IT and Finance- The major role of the finance department is to manage funds for
organisation. Similarly, IT organisation manage the operations with the use of technology.
Moreover, they both are related with each other as to manage funds at a large level. Finance
department must use updated tools.
Marketing and sales- Marketing and sales department of organisation both are related
with other. Like with the creation of marketing plan it is easy for the management to enhance the

sale of products. Similarly sales department provide feedback to marketing department that is
beneficial to improve the products quality (Magomya and et. al., 2014).
Organisation objectives defines the common goal for all departments of organisation that
are only achieved through performing work with better coordination. In the context of Aviva,
there are various task are performed by management due to which better results will be gained at
global level. This determines that with proper management of operations it is easy for
management to produce the products in effective manner. Along with this human resource
departments of organisation is also work as a major asset for the management as with the skilled
employee's it is easy for management to perform their work as per benchmark standards.
Organisational structure : It is a system that defines how the activities in the organisation will be
done. It determines the flow of information, authority and responsibility, roles and duties etc.
Majority of the organisation perform their roles so the organisational structure which is
followed by them is different (Nickel and Eikenberry, 2016). Like divisional, functional, matrix
and many more.
Divisional structure- According to divisional structure, all the functions of organisation
are based on their own decisions and division that is used by management to facilitate operations
and resources in an organised manner.
Matrix structure- As per this structure, relationship must be better between superior and
subordinate in the organisation. Due to matrix structure it is easy for organisation to perform
their work in better way it governs better results will be gained by management.

Functional structure- The structure that is followed by Aviva to perform their work is
functional. As per this structure organisation functions are divided into smaller groups. So all the
functions and roles of organisation are performed in better way (Pearson, 2017).
Functions that are performed by management of Aviva according to functional structure
and their roles that assist management to achieve their objectives are mention as follow:
Basis Marketing Human Resource Research and
development
Roles and
responsibiliti
es
Marketing department of
Aviva analyse the market
situation. This leads
organisation to formulate
their work as per
customer's needs. So
better results will be
gained by management
such as increase in sale
and profits as well as
customer satisfaction.
Human resources
department of the
organisation plays a
crucial role in
organisation. As it recruit
employee's for other
departments to perform
their work effectively.
Research department of
an organisation
undertakes various task
through which
management is able to
perform their work in a
innovative way. Further,
it also helps management
to complete their work
with a unique approach.

TASK 3
P4 Impact of macro environment on operations of business
Micro factors- Micro factor refer to those aspects that impact on the strategy of business.
Their are various aspect will be present in market that impact on the strategy of business as the
performance and decision-making is impacting on business operations. Their are large number of
resources, capacity and strategies are managed by the organisation in an appropriate manner. So
better results are gained by management. Customer's are the key point that muse be attracted by
organisation for their work. On the other side, competitors are another person and internal
stakeholders which influence on business strategies (Schaltegger, Hansen and Lüdeke-Freund,
2016). Along with this, employee's are also performing a crucial role for managing strategies of
organisation such to select target market.
Macro factors- The macro factor of organisation are the another external factors that is
impacting on business on positive as well as negative manner. It is crucial for organisation to
manage its task in a manner through which its task are managed in a manner which leads
organisation to gain more opportunities.
For analysis of macro environment PESTLE model is used :
Illustration 1: Source((Scanning the Environment: PESTEL
Analysis. 2016SWOT Analysis 2017))

Political- The term political conditions refers to aspects such as rules, regulations, laws
that are beyond the control of management. As it is managed by government of a country, Impact
of the political factor are mention as follow:
 Positive impact- In the context of UK government, they are more focused towards waste
management such as recycling techniques of organisation. Along with this by monitoring
political aspect it is easy for management to gain sustainability in a country.
 Negative impact- Due to the complex rules and regulations it is complex for management
to perform the work with effectively quality (Tahernejad, Khalokakaie and Ataei, 2013).
Economical- All the monetary as well as financial aspects of the organisation are
included in economical aspect.
 Negative impact- The financial conditions of the UK are not good for organisation it
determines that the current situation of finance is not satisfaction in UK.
 Positive impact- Due to Brexit the prices of the products are reduced but in context of
quality it is similar for organisation.
Social- Their are large number of task are performed by management it determines that it
is necessary for management to perform their work as per consumer cultures and values.
 Positive impact- The current population of the organisation is more attracted towards the
cities. This refers that due to improving the conditions of population the need for safety
of individuals is also increasing such as life insurance, term insurance etc.
 Negative impact- It provides employment to increase their work by considering their task
as well as it is complex for companies to fulfil the needs of all individuals.
Technological- It is one of the most important factor for Aviva to perform their work
according to technological conditions because it is increasing with rapid speed.
 Positive impact- All the UK organisation are more focused towards the UK policies. It
refers that with automated systems it is easy for Aviva employee's to perform their work
in effective manner (Wetherly, 2014).
 Negative impact- In the context of technology factor it is complex for organisation to
invest such high amount value as technological aspects are very dynamic.
Legal- The legal factors of the organisation related with laws and implication that is
influencing on strategies and operations of organisation.

 Positive impact- Insurance work with the motive of providing safety to employee's and
those individuals as it improve image of organisation in effective manner.
 Negative impact- Aviva is performing their work at global level so it is used for
generating products are safe (Hillary, 2017).
Ecological- From the recent years the aspects of environmental factor are more consider by
government, industry and companies. It determines this is mandatory for organisation to
complete work as per environment conditions.
 Positive- As there is increase in the population of country, the risk factor among countries
is also increased such as pollution, unemployment etc. So by focusing on general factors
it is easy for Aviva to improve demand of it products such as attractive life-insurance
scheme.
 Negative impact- With the need of organisation it is analysed that it is complex for
management to meet with their process with environment factors.
TASK 4
P5 : Internal Analysis of organisation to identify strengths and weaknesses
This is mandatory for all companies to understand their strength, weaknesses,
opportunities and threats. It refers that with the proper analyse of internal departments of
organisation. It is easy to manage opportunities and threats for organisation. Therefore, the
SWOT analysis of the Crown perspective service and Aviva is mention as follow:
SWOT Analysis of CPS
 Strength- In the present scenario, the major strength for CPS is their finance resources as
it is directly relates with government. With the collections of tax it is easy for
organisation to perform their operations in effective manner (Häuberer, 2014). The market area which is covered by UK is used to make long term benefits because it is
covered by management of Aviva at a broader level. It determines that with better
quality of services, it is easy for management to gain high market area.
 Weakness- This is difficult for CPS to provide better services to its customer's as some
aspects such as slow decision-making, involvement of high authorities etc. impact on the
decision-making of organisation.