Business Environment Analysis: Impacts, Strengths & Weaknesses

This report provides a comprehensive analysis of the business environment, focusing on the types, purposes, and legal structures of private (McDonald's), public (Crown Prosecution Service), and voluntary (Oxfam) organisations. It examines the scope and size of these organisations, highlighting their products, services, and vision. The report explores the relationship between various organisational functions and their link to structure and objectives, along with the positive and negative impacts of the macro environment on business operations. Furthermore, it includes an internal and external analysis to define the strengths and weaknesses of a particular organisation and how these interrelate with external macro factors. The report concludes by summarising key findings and providing recommendations.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1. Several types, purposes and legal structure of public, private and voluntary organisations 4
P2. Scope and size of a several types of organisations...........................................................7
TASK 2............................................................................................................................................8
P3. Relationship between various organisational functions and how they link to organisational
structure and objectives..........................................................................................................8
TASK 3..........................................................................................................................................10
P4. Positive and negative impacts the macro environment has upon business operations with
examples...............................................................................................................................10
TASK 4..........................................................................................................................................11
P5. Internal and external analysis of particular organisation to define its strength and
weakness...............................................................................................................................11
P6. How strength and weakness interrelate with external macro factors.............................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business environment refers to the combination of all internal and external factors
incudes clients, employees, customers, supply and demand, activities by government, innovative
technologies and so on. All of these factors influence overall business activities and their overall
works directly or indirectly. Therefore, it is most essential aspect of any business which allows to
evaluates overall strategies and make effective decisions in order to beat competitors. Moreover,
business environment plays very effective role in companies by which they can develop different
tools and strategies as per the environment condition. This report is based on private
(McDonald's), public (Crown Prosecution) and volunteer organisation (Oxfam) with main
motive is to provide better services to customers with full of satisfaction globally. Along with it
will get covered different types, size and scope of organisations. After this interrelations of
several functions within the organisation (Bah and Fang, 2015). At last, positive and negative
impact the macro environment has on business operations and strength or weakness of particular
business to understand external macro factors as well as business purpose of business
organisation will get covered.
TASK 1
P1. Several types, purposes and legal structure of public, private and voluntary organisations
With in the competitive scenario there are lots of business organisation who always
considered as the social units in order to analyse customers needs and demand within the
marketplace. All over the business firm have a effective management style by which they can
build strong relationship with customers and able to gain profits and productivity at marketplace.
Therefore, all type of business organisation are responsible to manage their system in a proper
manner so that they can make their business situation better at every level (Erasmus, Strydom
and Rudansky-Kloppers, 2016). There are different types of organisation and their systems are
mentioned below:
Private organisation:
This type of organisation owned and controlled by an individual or people which is not
comes under the any type of governmental bodies and policies. Herein, the main motive of this
organisation is to earn huge profits by conducting various research and operations within the
marketplace. Example of this organisation is based on McDonald's which is a private company
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and deals with different type of food items globally. It was formed in the year of 1955,
headquartered in Chicago U.S.
Purpose:The main purpose of this firm is to gain huge success by giving better goods
and services to its customers effectively. Another side it always makes tasty food for their
customers in order to increase its standard at various level. Together with another aim is to
maximisation of brand loyalty towards customers. Therefore, it is very famous organisation
worldwide who always focuses on customers problem first and then make items accordingly.
Legal structure: McDonald's is a sorts of join stock organisation so according to the
business scenario it has lots of legal identification from its owner. According to this structure this
company deals with different types of share holder to meet customer's needs and wants by
following unique tools and strategies to achieve goals (Charter, 2017).
Stakeholders: It refers to the people and individuals who always cope up with various
people at marketplace and make their plan by observing overall situation of business. Generally
stakeholders are the type of people as well as employees of an organisation.
Set up of PLC: In order to make unique set up for private organisation is necessary to
make every plan in a short way. With the help of this firm can manage their overall activities and
able to stay for long period of time within the marketplace.
Public organisation:
This type of organisation always governed and regulated by governmental bodies in order
to survive in a well manner. But for the some times this type of organisation deals with private
firms in order to supply appropriate goods and services to customers. For this Crown Prosecution
services taken which is one of the best public organisation and identify overall criminal
prosecution within the Wales and England. This firm was formed in the year of 1986 through
Paul staff.
Purpose: The main motive of this organisation is to overcome criminal issues from the
economy and make each and every individual happy. In order to make their services better in
front of people they gives facilities like legal advices and police. Therefore, they always have
better knowledge and advice accordingly. Their advice mainly for the police to reduce such type
of case properly (Saleh and Mahroum, 2015).
Legal Structure: They always follow top level services in order to develop various
unique strategies and policies to make proper decision for peoples. With the help of unique
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decisions they can make their services better and able to reduce crime. They also prepare
attractive plan for marketing in order to get better results in future.
Set up for public organisation: In order to set up this type of services or public
organisation there is requirement of 2 stakeholders and 2 directors to resolve every issue of
public within the economy.
Stakeholders: It depends on the government polices as well as few actions which is
taken by private firms. Therefore, it involves financial situation, shareholders and government
employees (Breckova, 2016).
Voluntary Organisation:
It is based on the large number people of group who enter in this type of firm by
assigning on appropriate agreement. Along with it is kind of body which is used to describe
overall goals and objectives of an organisation. For example Oxfam is the alliance of 20
independent charitable firms which identify global poverty as well as not profitable
organisations. It was founded in the year of 1942 through Jackson-Cole and headquartered in
England.
Purpose: Main motive of this industry is to make different solutions to reduce poverty
from the entire economy. On the other side they want world without poverty. Therefore, they
always found better ways to overcome such kind of issues and apply useful laws to understand
its roles and responsibilities. Whereas, mission of this company is to treated every people in a
same way and keep them happy.
Legal Structure: It is based on community interest for the organisation, unincorporated
association, trust and so on.
A trust: According to this approach people always work in a proper way, together with
they manage overall funds for the welfare community (Groşanu and et.al., 2015).
An Unincorporated association: It is the sum total of individuals and not associated with
legal existence. That's why all decision for this are made by group of people.
Set up for volunteer organisation: In order to make effective services there are different
types of charity laws, compliances checklist, legal advice, keeping records for the betterment of
economy.
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Stakeholders: It includes, board members, staff members etc. all of these type of
stakeholders influenced by this volunteer organisation. Along with there are some another types
such as project team, manager, sponsors and functional managers.
P2. Scope and size of a several types of organisations
Ever business industry has different types of size and scope in order to attract large
number of customers to gain profits. Some of them are mentioned below:
Private Organisation : McDonald's
Product and Services Size and Scope Vision mission
McDonald's always
deals with different
types of food items
includes chicken
sandwich,
Hamburgers,
smoothies, cold drinks,
as it used their own
brand name on every
product. Therefore, it
is a famous food
provider private
organisation which
satisfy customers
needs and wants
within business
environment.
Scope and size of this
organisation is very
wide, just because firm
operating 34,492
stores worldwide.
Along with this,
largest store of this
industry is situated in
Noida, India that
spread over 8000 sq.
ft. with the capacity of
320 seats on 2 floors
(Grigore and Drăgan,
2015).
Vision of this
organisation is to
make world's best food
services to customers
by giving them better
satisfaction. Herein,
best refers to the
unique qualities of
goods within the
restaurant.
Mission of this
company is to make
foods as per the
customer's demand in
order to gain better
success in future.
Along with focuses on
build strong
relationship with
customers to achieve
goals.
Public organisation : Crown Prosecution Service
Product and Services Size and Scope Vision mission
They provide better
legal advices to police
Within CPS, they
operates 800,000 and
Vision of this firm is
to become totally
CPS mission is to
make positive
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departments and
agencies. On the other
side they also take raw
information and
convert into resolve
overall criminal issues.
many more
persecutions. Together
with firm has 2900
solicitors as well as
600 staff members in
the working place.
independent by giving
essential information
to needed departments.
behaviour with people
at workplace. Along
with focuses on
making good relations
with customers and
colleagues.
Voluntary Organisation :Oxfam
Product and Services Size and Scope Vision mission
This sort of firm
comes with the aim of
overcome poverty to
increase standard
living of customers
across the globe.
Along with industry
offers various kinds of
goods such as clothes,
groceries items and so
on.
Its operates 20
charitable trust all
which are working
under this respective
firm. It offers welfare
services and reduce
poverty in a proper
way.
Organisation has clear
vision is to provide
affordable goods for
customers.
Mission of this
company is to take
care of everyone's life
by developing equal
strategies for all in
order to reduce poverty
properly.
According to the critical analysis it can be said that, within current scenario there are
different types of an organisation which all are having different types of structures and business
scenario to influence people at different ways. There are some differences between profit, not
profit and non government organisations, those are mentioned below:
Profit organisation: These sorts of organisations always have aim to earn huge profit by
various operations which is generally concerned as their own interest and so on. Therefore, they
usually comes under the private sectors in which they helps organisation and encourage them to
make different types of market shares to gain good profit. So that these types of private
organisations are never governed by the government and always work privately by which they
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achieve its vision and goals in an appropriate manner. Together with profit organisations also
focus on modern forms of profit by existing their business at marketplace. Sole proprietors like
developers, designers and small and medium sized businesses such as hospitality, food, legal
services are the best example of profit organisations.
Not for profit: These sorts of organisation are those enterprises which do not earn profits
for its owners. In order to achieve appropriate goals and objectives money is earned by not for
profit which can be denoted to other non for profit firms. On the other side these sorts of firm are
comes under the public service organisations as they are not needed to pay huge taxes.
Therefore, the main aim of non profit organisation is to distribute income to the group members
so that they can manage this corporation in a proper way. For example: International rescue
committee, United way and so on.
Non government organisation: These types of organisations are totally independent
which is not regulated by any government policies. These type of organisation always deals in a
social areas in order to provide better facility to people or citizens which mainly includes clubs
and so many other associations that offers effective services, premises, benefits to people. For
example: Oxfam, BINGO (Business friendly international) NGO etc.
Difference between micro, small and medium sized enterprises:
Micro sized enterprise: This type of business is generally based on that type of business
which consist less then 10 employees. Along with this, micro business play very important role
in order to maintain economic viability of many regions within UK. But having lack of
employees at business place these sorts of firm generally face few issues by which they are not
able to fulfil their needs on time.
Small and Medium-sized enterprise: These type of business or enterprises usually
maintains their revenues, assets and large number of employees in business. Therefore, they are
totally different is different countries along with plays very significant role within the economy
as it helps them to increase overall values of economies by implementing on new innovative
things to shape people mind set in proper way. These sorts of enterprises are mainly includes
favourable tax treatment and gives loan facility to people to maintain and increase economy
growth in a better way.
Legal structure:
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It is mainly associated with different types of firms and new businesses by which an
organisation can choose their appropriate legal structure in order to provide better ways and
services to other corporations, sole proprietors and so on. From the above mentioned legal
structure, size and scope of different organisations which is directly link with the business is
benefited for all organisations by which they can make appropriate decision in order to expand
their business size and scope in a perfect manner. On the other side legal structure, size and
scope of an organisation are interrelated with each other which support every business to
increase its sales and revenue appropriately. For example: If McDonald wants to expand its
market in another place then it is needed for them to measure overall market situation before
entering in market. Therefore, on the basis of current situation firm is required to have
appropriate legal structure, size and scope.
Sole Proprietorship:
It is considered a simple form of business which is always operate by business along with
this, it is not an legal entity as it refer to a person who operates their own business personally.
Therefore, an individual always has responsibility to its database. It is useful for firms to have
this, in order to increase firm's liability and their productivity. For example: these sorts of
proprietorship includes small business such as local grocery, studio of single person and many
more other services offered by an individual to customers at marketplace.
Limited Liability:
It is based on person when financial liabilities are limited s well as fixed. For example if
firm has limited liability than they are not personally liable for for any kind of debts of an
organisation. On the other side, amount already invested through an organisation through
knowing overall shares of the firm. Therefore, limited liabilities have limited partnership and
members who all are liable for any kind of debts within the business.
Partnership:
It refers to the formal agreement through 2 or more parties in order to operate and
manage overall business and their profits. Along with this, there are several kind of partnership
agreements which includes share liabilities, equal profits and partners have limited liabilities.
This is also known as silent partners in which one party is not involved for conducting everyday
operations into the businesses.
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TASK 2
P3. Relationship between various organisational functions and how they link to organisational
structure and objectives
Every organisation has different type of marketing department along with other
department they always cope up. In order to achieve organisational goals t is essential for firm to
make good relation with other functional units in the company for staying long period of time
within the marketplace (Hamilton and Webster, 2018). In reference with MacDonald's,
marketing manager of this firm always work with other functional unit of an organisation so that
they can achieve their predetermined goals without facing any issues at working place. There are
interrelationship of marketing department with other units in context with respective
organisation, those are explained in beneath:
Marketing with Sales department:
Sales department is one of the best functional unit of any business which helps to gain
huge success within the competitive business scenario. This department always works with the
help of marketing department in order to achieve same goals at one time. In relation with
MacDonald's marketing manager has responsibility to make good relation with this sales unit in
order to make every decision better. With the help of better coordination they can get huge
success in a business environment. Along with this, they also share their thoughts, ideas and
views to improve overall business strategies. From this unique relationship they can make their
organisation more better and increase customers loyalty towards firms.
Marketing with Finance department:
Financial units play significant role within the company in order to gain specified goals
and objectives in a proper way. According to the respective organisation employees of marketing
department are very helpful who always bring unique decision in order to manage overall
funding system of this company. Whereas, finance department always meet various situations of
business and work with marketing employees to bring appropriate decision for the better future.
As marketing channels are includes advertisements, promoting goods etc. Therefore, financial
units cope up with marketing units to make effective statement of budget (Hair and et.al., 2015).
Marketing with Human Resource department:
HRD is very essential function unit for every firm in order to achieve appropriate goals
and objectives. In context with McDonald's human resource department always makes good
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relations with marketing department in order to hire skilled and knowledgable people for the
better business. By recruiting effective and productive people, both department can make better
strategies to run its business in a smooth way. So that it shows the better interrelationship
between both functional units in a perfect way.
From the above interrelationships this can be said that, if various departments
communicates with marketing department then respective firm can get better opportunities for
future. At the same time if marketing department will not follow any instruction which is given
from the different departments then it impact negatively on the management system of an
organisation as well as customers at marketplace.
For instance, respective firm is followed hierarchical organisational structure in order to
maintain all over the function department units within the business place. With the help of this
firm can get huge advantages like able to face lots of competitors, gain productivity and so on.
But the same time big disadvantages is that, by having large number of employees within the
organisation can creates so many conflicts so that it has negative imp[act on the company.
Therefore, structure which is followed by an organisation easily impact on business in a positive
way and make firm productive at marketplace.
As per the critical evaluation of different marketing unit interrelationships, this can be
said that, if firms have different types of interrelationship form various functional unit then they
can easily achieve their goals and objectives without any issues. This is because this is one of the
best way to measure overall situation of business and then implements on those ideas which is
bring by the financial, HRM and production department to market department. With the help of
this an organisation can build strong relationship with their customers and able to provide huge
benefits to them. These types of integration from various department in organisation always
makes them attractive so that a business firm can make appropriate business structure and able to
achieve its organisational objectives in a perfect way. Therefore, these sorts of organisational
functions are more important and its interrelations increase firm productivity in such a unique
way.
On the behalf of different types of interrelationships between so many functions into the
firm, this can be said that, marketing and sales department has good form interrelation by which
firms can easily manage their work and influence others in a competitive scenario. On the other
side, interconnection between marketing and finance department always gives better direction to
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