Business and the Business Environment: A Comprehensive Analysis

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BUSINESS AND THE BUSINESS
ENVIRONMENT
1

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
LO1 DIFFERENT TYPES, SIZE AND SCOPE OF ORGANISATIONS.....................................4
P1 TYPE, SIZE AND SCOPE....................................................................................................4
P2 SIZE AND SCOPE.................................................................................................................6
M1 INTERCONNECTION BETWEEN BUSINESS OBJECTIVE AND PRODUCT AND
SERVICES WHICH ARE OFFERED BY THE ORGANIZATION.........................................8
LO2..................................................................................................................................................9
P3 RELATIONSHIP BETWEEN DIFFERENT ORGANIZATIONAL FUNCTIONS AND
HOW THEY LINK TO ORGANIZATIONAL OBJECTIVES AND STRUCTURE................9
M2 ADVANTAGES AND DISADVANTAGES THEIR INTERRELATIONSHIP WITH
EACH OTHER..........................................................................................................................11
TASK 2..........................................................................................................................................12
CONCLUSION..............................................................................................................................32
REFERENCES..............................................................................................................................33
2

INTRODUCTION
In this assignment, the business environment will be explain as the total of all different internal
and the external factor which will affect the operation of the business in many different ways
(Abbott, 2015). In the market they are a different type of factor of the business environment that
will comprise the business that is Government, technology and many more. All these different
factors will affect the business directly or indirectly in the organization (Abbott, 2015).This
assignment report will focus mainly on the different business factor which will affect the
business strategy and their operations.
If the organization wants a full of detail knowledge about the business then they have to compare
the different type of organization with the different type of organizational affect such as size,
type, company’s information, scope etc (Abbott, 2015).they are the main objective of the
organization to understand the structure and the different type of activity held in the organization
for the growth and the benefits of the organization in future this the main purpose of the
organization (Abbott, 2015).
This assignment is basically covering all the three sectors that are public, private and voluntary
sector. In this assignment report, the different type of business factor was focused. With the help
of this assignment, the organization can deeply understand the various type of activity and
structure of the company that will help the organization for increasing its growth (Abbott, 2015).
On the other hand, they will also focus on the success of the organization in future. They will
also focus on to fulfil the need of the customer by providing them with a good product and
services. Theorganizations use many different types of strategy to increase the organization
revenue in the market with less time period (Abbott, 2015).
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TASK 1
LO1 DIFFERENT TYPES, SIZE AND SCOPE OF ORGANISATIONS
P1 TYPE, SIZE AND SCOPE
With the help of different sector, the goal and the profit ratio of the organization can be
determined. This can be classified as:
PROFIT ORGANISATION
Most of the government services are involved in term of money. Under the public sector, most of
the financial support is done by the government bodies to run the business (Aithal, 2016). In
favour of the people, it will help to gain the motive of the organization.These types of
organization mainly operate or run by private individual and companies. The main motive of the
organization is that with the help using a different type of strategy in their organization to
maximize the organizational profit (Aithal, 2016). The government of the nation will not control
the private organization.
For exampleJohn Lewis Partnership. Their main motive is to increase the profit.This company is
basically deal with the retail sector (Aithal, 2016). On the basis of the latest scenario, the number
of workers working in this organization is approx. 8500. On the other hand, the scope of the
company is middle and the lower class of customer. Currently, this company owns the 29
department's stores and 214 Waitrose supermarkets. £10.2 billion is the revenue of the company
(Aithal, 2016).
The mission of the company is to earn more and more profit. And they try to satisfy the customer
need and wants with limited sources. They will also try to give a healthy working atmosphere for
their some employee (Aithal, 2016).
NOT-FOR-PROFIT ORGANISATION
In not for profit organization the main motive is to serve the batter quality of product and better
services to their target customer for the welfare of the society. They try to satisfy the customer
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need with the help of different ways (Aithal, 2016). They will not do their work for increasing
the organization profit. These types of organization are generally owned and operated by the
organization. For example, Sainsbury is a public organization. Their operations are owned by the
government of the nation. Their main motive is to serve the batter quality of product with
reasonable price and better services for the welfare of the society (Aithal, 2016). The main
mission of the company is that with the help of brilliant minds the company wants to improve the
health sectors so that they will satisfy the customer need and wants.The main mission of the
company is to serve the batter service to their target audience by providing them with a good
quality of product and services (Aithal, 2016). And they will also give them conformity related
to their health and safety of society. And on the other organization protecting the atmosphere for
winning the customer trust
NON- GOVERNMENT SECTOR ORGANIZATIONS:
In the non-government of the organization different type of person come together with the same
motive and they will also put their efforts for some benefits of the organization (Aithal, 2016).
Welcome trust is the best example of the NGO. Their main motive is to serve the best services to
their citizen and also to satisfy the customer need and wants with the help of a group of many
different people (Aithal, 2016).
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P2 SIZE AND SCOPE
Sainsbury’s are Around 190,000 members who are working in this organization. With the help of
marketing analyses, this is notice that there is very tough competition in the market as compared
to the other organization (Aluko, and Knight, 2017). There are 190,000 numbers of employees
and on the other hand, the size of the organization is very large. On the basis of the latest analyze
that there are more than 800 stores and that will include the convenience store and the
supermarket. £28.456 billion is the revenue of the company (Aluko, and Knight, 2017). This
company mainly focuses on increasing their revenue with the help of limited sources.
In John Lewis Partnership the number of workers working in this organization is approx. 8500.
On the other hand, the scope of the company is middle and the lower class of customer (Aluko,
and Knight, 2017). Currently, this company owns the 29 department's stores and 214 Waitrose
supermarkets. £10.2 billion is the revenue of the company. The JLP is one of the largest
organizations which deal with many things. In Wellcome, trust 2100 member is working. This
company is also provided with some funds to needy people. This company is basically deal with
the biomedical research industry (Aluko, and Knight, 2017).
SMALL BUSINESS
If the annual sale of the company is less than250,000 per year then that business is called the
micro business. They have few employees not more than 5 including the owner (Aluko, and
Knight, 2017). On the other hand, the financial capital of the organization is not more than 50000
and they are reliable to pay tax on the basis of theirearning. The business will get the subset with
small business. And they will support a few members of their company (Aluko, and Knight,
2017)
MEDIUM BUSINESS
In the general term, the organization is managed by the owner of the organization and they will
also regulate some of the equity which was organized by the company. The effective function of
the organization and the decision making is constructed by the small business (Meier et al.,
2019). With the business, the primary function of the owner is short term planning. And this will
involve some informal process with a different activity.
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LARGE BUSINESS
With the help of the government bodies, the business can undergo which are basically high
reluctant in managing. The larger organization requires a difference in decision making. And the
hierarchical is based on the approval from each and every department (Meier et al., 2019). And
every department is working to increase the revenue of the organization. For the long term
planning the extensive and the drastic decisioncan horizontally construe.On the other hand, they
are highlyaffected by the formal structure and the way of working pattern of the working process
(Meier et al., 2019).
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M1 INTERCONNECTION BETWEEN BUSINESS OBJECTIVE AND PRODUCT AND
SERVICES WHICH ARE OFFERED BY THE ORGANIZATION
The structure, size and scope of the organization are connected with the organizational goal. In
most of the organization, it is noticed that when the organization have a good structure then only
they will set their huge objective.in that their main focus is that they will earn profit in future
(Meier et al., 2019). The organization have to mainly focus to support a large number of
employee in their organization. Without supporting then the organization will not achieve their
goal or complete their task. The reason for this is there is no understanding between the
employees in the organization (Bull et al.,2019).
Sometimes organizations don't have any trainee who will give training to their employee. On the
basis of the size of the organization, the manager has to set their objective accordingly. On the
other hand, if the organizations decide to invest money then their target will be higher and vice
versa (Bull et al.,2019). In the business journey, the organization have to set one common goal.
Through this, the customer will satisfy there need and wants and try to earn more and more
profit. On the other hand, the size of the organization is depending on the level of profit. As
compared to the other company the John Lewis partnership will target higher (Bull et
al.,2019).The structure, size and scope of the organization are connected with the organizational
goal. In most of the organization, it is noticed that when the organization have a good structure
then only they will set their huge objective.
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LO2
P3 RELATIONSHIP BETWEEN DIFFERENT ORGANIZATIONAL FUNCTIONS AND
HOW THEY LINK TO ORGANIZATIONAL OBJECTIVES AND STRUCTURE
The organizational function fully depends on the different type of departments like HR ,Sales
and many more. (Bull et al.,2019). The organizational structure of all the sectors shows the
different type of functions in the organization that are interrelated with each other. We can
understand the relationship between the organizational function and their relationship with the
help of the flow chart. With the help of the chain of demand, most of the businesses adopt a
functional organization (Chenhall et al., 2017). In other words, there are different types of
function which is distributed with the different department that will report to the departmental
manager.
Now a day each and every organization uses the different type of structure that will motivate the
organization's goal. The organizationalstructure of the company is changing as per the demand of
the customer (Chenhall et al., 2017). On the other hand, due to this, the goal of the organization
is also changing. The organizations hire more employee and they try to expand theirbusiness.
The first need of the organization must be a clear vision before the leader of the company was
identifies the goal of the organization (Chenhall et al., 2017). The managers of the company have
to set a short vision so that every employee in the organization can easily retain in their mind.
This means that the goal of the organization is set by the management must be in the proper line.
With the help of marketing, the relationship between the markets will be better in order to satisfy
the customer need and wants (Chenhall et al., 2017).
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Figure 1 Functions Relate to Mission and Objectives
[Source: Chenhall et al., 2017]
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M2 ADVANTAGES AND DISADVANTAGES THEIR INTERRELATIONSHIP WITH
EACH OTHER
Some of the advantages and disadvantages of the different organizational structure and they're a
connection with the different department are explained below
ADVANTAGES
 The first advantage is that the employee working efficiency will increase in the
organization (Chenhall et al., 2017).
 At the working place, the productivity will also grow with the help of different
department.
 With the help of this, the innovation and creative ideas can generate so that most of the
customer will interact with each other (Chenhall et al., 2017). On the other hand, the
mind of the departmental head will also be analyzed by interaction with the organization.
 The profit of the organization will also increase day by day. The reason behind this is that
some of the important information related to the organization is shared with each other
(Chenhall et al., 2017).
DISADVANTAGES
 The organization loss control among the different department.
 Different functional department of an individual may be some time clashed or fight
between them (Wheelen et al., 2017).
 As compared to other the different department doesn't have moral and they will use some
of the wrong information which was collected by the different department in an improper
manner.
 If the organization was interconnected with different department then that will lead to the
development of the competitive environment (Wheelen et al., 2017). Due to this the
organization will not get success in future.
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TASK 2
Slide 1
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