Unit 1: Business and Business Environment Report - Semester 1

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UNIT 1
BUSINESS AND BUSINESS
ENVIRONMENT
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Table of Contents
INTRODUCTION........................................................................................................................3
LO1........................................................................................................................................... 4
LO2........................................................................................................................................... 8
LO3 & LO4.............................................................................................................................. 12
CONCLUSION.......................................................................................................................... 39
REFERENCES........................................................................................................................... 40
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INTRODUCTION
There are many sets of procedures and strategies which are defined and implemented in an
organization, which serves effective towards the growth and development of the entire
organization in an effective way. In order to determine the progress of an organization there
finds the need to evaluate the external and internal factors which affect the overall growth
of an organization (Charter, 2017). The report provides the examination of three different
organizations AVIVA, TFL and BBC on the basis of the size and scope and the way in which
these types of organizations operates. This will include stakeholders and many other
sources defined in the business environment of an organization which contributes towards
effective decision making of an organization (Hair Jr et al., 2015).
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LO1
INTRODUCTION
The classification of the various set of the organization has been done on the basis of the
size and scope of an organization. The organizations are mainly divided on the basis of profit
and non-profit organization which includes the subdivision in the form of public-private and
protected depending upon the supply and the profit generation ability of an organization.
BODY
The analysis of the business has been determined by including various main set of factors
related to the operational management of an organization. Such type of organization
includes stakeholders, management, and other elements leading towards the development
and progress of the company (Brown et al., 2018).
CLASSIFICATION OF ORGANIZATION
The distribution of a various set of the organization has been defined by considering a
various set of components such as a number of employees working in an organization, the
organizational structure of an organization and many such components.
On considering the number of employees and way of profit generation in an organization,
the division of various organizations can be defined as:
 Public Organization
 Private Organization
 Voluntary Organization
PUBLIC ORGANIZATION
The type of organization in which the set of functions and operations are managed by the
government authorities is termed as Public Organization. This type of organization plays
more emphasis in terms of delivering the best set of services to the customers without
focusing on the profit generation techniques defined in an organization. One of the most
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famous companies defined is the BBC, which provides a set of services related to the
broadcasting process. This company is owned by the government of the UK (Prajogo, 2016).
PRIVATE ORGANIZATION
The type of organization which is owned by the private set of authorities or a person is
known as the Private organization. This type of organization majorly focuses upon the profit
generation factor. This type of organization serves to deliver the set of products to the
customers which increase the overall profit generation ability of an organization. One of the
popular organization belonging to this category is named as AVIVA. It is an organization
which delivers the financial services to the people (Abuzeinab et al., 2016).
VOLUNTARY ORGANIZATION
The type of organization which is privately owned by including some of the government
authorities is known as a voluntary organization. Such type of organizations mainly includes
the capability of defining a high amount of profit by efficiently delivering the set of products
and services to the customers. The famous organization which belongs to this type of
background is named as TFL which is the statutory corporation. It serves to provide a set of
facilities to the people in the transport sector (Rahimi and Gunlu, 2016).
SCOPE AND SIZE OF ORGANIZATIONS
An organization named Aviva provides services related to pensions, life insurance, and
general insurance. The total revenue generated by the company is defined as £17,799
million. The company was founded in the year 2000. The net income of the company is
estimated to be £1,687 million. The company serves to provide long-term savings and
services related to fund management. There are 29,600 employees who are working in the
company along with having 33 million customers. The company has expanded its business in
many other parts of the world such as China, Canada, the UK, Indonesia, Italy, and many
other countries (Rahimi and Gunlu, 2016).
An organization named as TFL, an acronym of Transport For London provides local
government body which is responsible for the transport system in England. Its headquarters
are located in 55 Broadway, London. The company mainly serves the region of Greater
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London. The numbers of staffs present in the company are identified to be 28,000. The
company is controlled by the set of members who are appointed by the mayor of London. It
operates and owns the London Transport Museum situated in Covent Garden.
An organization named as BBC is served to be classified as statutory corporations. It serves
the set of services related to broadcasting. The company was founded by John Reith on 1st
Jan 1927. The total numbers of employees defined in the BBC are 20,916 employees. The
total revenue defined y the company is estimated to be 4.954 billion. The company offers
various set of products related to broadcasting, web, and radio (Parliament, 2017).
MICRO BUSINESS SMALL BUSINESS MEDIUM BUSINESS LARGE BUSINESS
A business which
includes the total
number of
employees less
than 10 is
defined to be
micro business
(Hillary, 2017).
A type of business
in which a limited
set of resources are
available for the
development of a
new set of products
having employees
less than 50 is called
small business.
A type of business
which serves to have a
maximum of 250
members is called
Medium business.
This type of business
establishes a link
between small and
large businesses.
A type of business in
which the operations
are managed by
investors defining
brand equity's ratio is
called the large
business.
(Greenfeld et al.,
2016).
In order to
determine an
effective set of
operations in an
organization, an
average of 6
members is
included in this
type of
organization.
In order to define
the growth and
overall
development of an
organization,
effective decision
making has been
determined (Hillary,
2017)
These type of
organization
implements the set of
procedures and
strategies which
enhances the decision-
making ability towards
an organization.
This type of business
aims to overcome the
upcoming barriers
towards the smooth
functioning of an
organization leading to
an effective set of
techniques and
procedures to be
implemented.
It includes the set
of the
The set of roles and
responsibilities
This type of
organization serves to
This type of
organization includes
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organization
having financial
capital less than
$50,000. It leads
to effective tax
payable schemes.
defined towards the
owner of an
organization is
determined in an
informal way.
define long term goals
in order to contribute
effectively towards the
profit generation ability
(Hillary, 2017).
the way of handling
the informal and
formal set of
procedures which
affect the overall
working and
development of an
organization.
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LO2
The type of structure which is formed by the collection of the main components which
serves to be identified as the main element affecting the progress and smooth functioning
of an organization is termed as organizational structure.
An organization named as BBC serves to implement the hierarchical structure. This type of
structure helps an organization to determine the set of tasks being performed in an
organization. The hierarchical structure of BBC mainly includes Executive team, Board
Executive, BBC trust and other members of the department. In terms of being defined as the
oldest company in the sector of broadcasting, it serves helpful to determine a new set of
procedures and techniques which leads to the overall growth of an organization (Sharma, A.,
2017).
Figure 1: Organizational Structure BBC
Source: (Sharma, 2017)
An organization named Aviva serves to define the flat organizational structure. It helps in
defining factors of managing risk and internal control defining effectiveness towards the
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working of an organization. This type of structure helps in identifying the risk failure in terms
of achieving the goals and objectives defined in an organization (Zargarian, 2018).
Figure 2: Organizational Structure AVIVA
Source: (Sharma, 2017)
An organization named as TFL serves to follow the hierarchical organizational structure. This
type of structure leads to the subdivision of big tasks into small modules in order to
effectively implement a various set of functions associated with the overall progress and
growth of an organization (Dorn, 2017).
Figure 3: Organizational Structure TFL
Source: (Sharma, 2017)
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COMPLEXITIES ASSOCIATED WITH VARIOUS ORGANIZATIONAL STRUCTURES
Complexities based over the business environment of an organization determine the
activities which include the departmental and functional activities defined over the
organizational structure of an organization. The complexities affect the resources made
available towards the import and export of products and services defined by an organization
(Toynbee and Walker, 2017). On the basis of evaluating the complexities of an organization,
the set of components which can be defined towards the growth and progress of an
organization are defined as:
FUNCTIONS OF WORKING OF AN ORGANIZATION
It serves to provide the capability of an organization to determine its working potential by
including various functions. The main functions which are defined by AVIVA are:
PRODUCTION SECTOR
It serves to define the sector which determines the set of strategies and procedures leading
towards the implementation of the most effective set of services defining overall
development and growth of an organization (Prajogo, 2016).
RESEARCH-DEVELOPMENT SECTOR
It acts as a base towards the implementation of techniques and procedures defined in an
organization. It provides the innovative and creative set of procedures and techniques
defining the overall growth of an organization. Such type of sector also assures that the set
of services are effectively defined according to the requirement of the customers.
MARKETING SECTOR
It is the sector which provides an opportunity for an organization in terms of accomplishing
its goals. It also provides the way for an organization to establish a brand name among the
people by delivering the best set of services to the people which serves to fulfill the needs of
the people in an effective way (Phillips, 2018). It also serves to determine stability in terms of
defining the organizational structure of an organization which is defined as:
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 International Organization: It is the type of organization which includes importers
and exporters defining the large area of expansion by having no investment beyond
the country.
 Global Organization: It is the type of organization which invests in many parts of the
world. It helps in establishing the goodwill of the company in various parts of the
world.
 Transnational Organization: It is the type of organization providing investment over
the foreign operations defined towards the complex organization (Charter, 2017).
CONCLUSION
This includes the various set of organizational structures along with the evaluation of the
three major company’s organizational structure defined as Aviva, TFL, and BBC. Along with,
this detailed analysis has been done over the organizational structure of Aviva by defining
the various sectors which play a vital role in defining the overall progress of the company
(Rizos et al., 2016).
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LO3 & LO4
Slide 1
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