Business Environment: Types, Legal Structures, and Interrelationships

This report provides an overview of the business environment, focusing on different types of organizations, their legal structures, and the interrelationships between their functions. It examines private, public, and voluntary sectors, using examples like Admiral sportswear, JD Sports Fashion plc., and Sports England. The report details the size and scope of these organizations and explains how functions such as finance, human resources, marketing, and production are interconnected to achieve business objectives. The analysis emphasizes the importance of understanding both internal and external factors, including the macro environment, to ensure business sustainability and competitive advantage. Desklib offers additional resources for students seeking solved assignments and past papers.

Business and business
environment

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
P1. Different types and purpose of organisation and their legal structures............................4
P2 Explain the size and scope of a range of different types of organisations........................6
P3 Interrelationship between organisational functions and how they are related to objectives
and structure...........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCE.................................................................................................................................10

INTRODUCTION
Business is defined as the legal entity that is engaged in various activities like
commercial, industrial and professional activities. The term of business is used for the purpose of
defining activities and efforts of individuals related to producing and selling products and
services for generating profits. Business environment is defined as the collection of different
internal as well as external factors such as customer’s needs, suppliers, activities of government,
demand and supply, social and market trends as well as innovation in technologies. These factors
impact business operations and activities so, it is important for business to analyse these factors
and develop strategies accordingly.
In this report chosen organisation is Admiral that is oldest English sportswear brand
which mostly concentrates on association football. Respective organisation founded in 1914 and
headquarter is situated in England, UK. This report is covered in two parts. In first part different
types of businesses, their legal structure and scope as well as size of organisation.
Interrelationship between different types of business functions are discussed. In second section
positive and negative impacts of macro environment on business operations, internal and
external analysis to identify strengths and weakness and hoe strengths and weaknesses related
with external macro factor is mentioned in this presentation.
TASK
P1. Different types and purpose of organisation and their legal structures.
Business is defined as the place where group of people work together for the purpose of
attain common shared goals and objectives. Business adopts systematic way to perform defined
operations in efficient manner. Different types of organisations which are engaged in different
types of activities are mentioned below:
Private sector: Private sector is is related to those organisations which are involved in
business activities for the purpose of generating profits. Private organisations provide products
and services to customers and concentrates on increasing sales (Appiah-Adu, Okpattah and
Amoako, 2018). This sector mainly focusses on increasing market share as well as maintain
strong brand image. Admiral is the organisation that deals in private sector and provides its
products to different country for generating profits.

Purpose: Purpose of Admiral is to provide better health and fitness services to customers
for retaining them longer period of time and generating higher profits.
Legal Structures: Admiral is the private limited organisation that adopts partnership to
conduct business operations. Different types of legal structure of private organisations are
mentioned below: Partnership is defined as the formal agreement between two or more people who are
engaged in some specific activities for the purpose of attaining common objectives.
Partners share profits and loss on defined ratio. Sole-proprietorship is considered as the simplest form of private business that is owned
and run by single person. Owner of business take all decisions of business related to
growth and development. Corporation is defined as the organisation that conducts business operations at different
part of world. In this business, large number of employees are involved at global market
area.
Public sector: Public sector is defined as the form of organisation which is run as well as
managed by the government. In this businesses, political parties play significant role and provide
finance to perform operations (Arnold, Beauchamp and Bowie, 2019). Public sector is the
portion of economy that composed all level of government as well as government controlled
enterprises. JD Sports Fashion plc. Is the private sector organisation deals in sports fashion
retailing.
Purpose: The main purpose of private organisation is to increase sales of organisational
products and services in order to generating higher profits. JD Sports Fashion Plc. Provides high
quality goods related to sports.
Legal Structures: JD Sports Fashion Plc. Adopts central government based legal
structure that helps business to perform defined operations in efficient manner. Some legal
structure of public sector organisation is mentioned below: Local government is the business structure that follows rules and regulations that are
introduced by the local government or authorities and business related decisions are taken
by the local government (Asiri, Greasley and Bocij, 2017). Central government organisations are run and managed by the central government and
they provide services to whole nation.

 State government company follows the rules and regulations that are developed by the
state government and provides products to citizens of specific state.
Voluntary Organisation sector: This organisations sector in involve in the operations of
providing benefits to the citizens of society. Voluntary organisations gather funds from different
sources for the purpose of meeting needs of people in society (Asongu and Odhiambo, 2019).
Example of voluntary organisation in Sports England which is local sports club of England.
Purpose: The main purpose of voluntary company is to solve the issues and provide
effective solutions of problems as well as offer products and services that meet requirements of
society. These business are not run for the purpose of earning profits and known as non-profit
organisations.
Legal Structures: Legal structures of Voluntary company is classified into charity as well as
trust association. Unincorporated association: This type of voluntary organisation that are made by the
legal association of two or more peoples with having the objective of social welfare.
 Trust: In this business structure trustee are the person who contribute funds and resources
for organisational functioning.
P2 Explain the size and scope of a range of different types of organisations
In competitive business environment, businesses are established with different goals and
objectives. Business sizes and scopes are different from each other according to their business
operations and activities (Bughin,and Chui, 2017). Size and scope of different organisations are
mentioned below:
Public organisation:
Size: JD Sports is the organisation that recruited large number of employees which in
more than 500. These employees perform business operations for providing better experience to
customers.
Scope: Scope and functions of JD Sports organisation are extended through adopting the
concept of digitalisation. Organisation provides quality sports products and services sports team
inside and outside of nation.
Private organisation:

Size: Admiral is the organisation that has 15 super centred fields and 10 outlets.
Organisation has 15000 candidates who involve in functional sections for the purpose of
providing quality sportswear with financial facilities.
Scope: Management department of Admiral recruit skilled candidates who has ability to
perform on advance technologies that has extended managerial scope (Comberg and Velamuri,
2017).
Voluntary organisation:
Size: Sports England has number of stores involving 500 outlets that are related to
sportswear and other sports items. Respective organisation provides more than 5000 products
and number of employees are engaged with organisational activities.
Scope: Sports England provides its facilities approximate 10 countries and it can extend
business through range of products to customers. Respective sports club provides various
facilities that increase the value of sports.
Basis Admiral JD Sports Sports England
Vision, mission
objective
Main objective of
Admiral is to meet
needs and demands of
customers through
provide sportswear
material (Henryk,
2020). Organisation
aim is to provide
products and facilities
at reasonable prices to
acquire customers.
Organisation vision
and mission is to
provide quality sports
products to customers
JD Sports objective is
to reduce the issues as
well as develop
effective dealing.
Respective
organisation bring
innovation in sports
products for the
purpose of retaining
customers.
Organisation's vision
is provide sports
related products to
gain customer base.
The main objective of
Sports England is to
reduce the issues as
well as conflicts
through supply
safeguard sports
products and ensure
that physical
environment provide
conditions for people
to become more active.

for generating profits.
Products and Services Admiral provides
sportswear products
for football, cricket,
cycling and athletics.
JD Sports provides
branded sports and
casual wear to the
specific sports.
Sports England
protects existing sports
provision and provides
great experience for
their participants.
Legal structures Admiral adopts
partnership business
structure in which
number of partners
perform their
operations for
attaining common
goals and objectives.
JD Sports uses central
government structure
so it follows rules of
central government
(Kim, Kim and Jeon,
2018).
Sports England has the
structure of trustee.
P3 Interrelationship between organisational functions and how they are related to objectives and
structure
In business, various department are working and they are interrelated with each other to
perform operations. Key department of Admiral organisation are finance, marketing, human
resource, production, sales and information technology. Interrelation of these department is
important for business to attain determined goals and objectives.
Finance and human resource: Finance and human resource are the important function
of an organisation and their interrelation is important for attaining determined set of objectives.
Finance department of Admiral provides budget for HR department and HR department recruit
suitable candidate for finance department and provide training to them for performing business
operations in efficient manner. This interrelation impacts organisational performance and
productivity.
Marketing and production department: Admiral is the organisation that product
sportswear and other items as per the needs and requirement of customers. Marketing department
of organisation is liable for assessing customers’ needs and market trends (Liu, and
Vrontis,2017). Information collected by the marketing department help production department to

products products according to demand. Interrelation of these department help business to
produce quality products according to market requirements and it improve business sales and
profitability.
Marketing and human resource department: Marketing and HR department also
interconnected with each other because HR department of Admiral appoint appropriate
candidates for HR department that plays important role in business success.
Interrelation between organisational department is important for business to attain
determined goals and objectives in efficient manner as well as maintains efficient structure of
business. Business uses hierarchical as well as divisional business structure that help business to
communicate all information at every department of organisation and help to perform business
operations in efficient manner.
CONCLUSION
As per above report, it can have concluded that business environment is related to various
internal as well as external factors that impacts business operations and performance. There are
various types of business that are established with different objectives, scopes and visions.
Macro environment includes various factors that are related to external environment such as
political, environmental, technological and various other are considered by managers in business
decision-making process that ensures business sustainability in competitive business
environment. Organisations strengths and weakness are interrelated with macro factors; business
involve these factor in strategies to gain competitive advantages.

REFERENCE
Book and journal
Appiah-Adu, K., Okpattah, B. and Amoako, G.K., 2018. Building capability for organizational
success: An emerging market perspective. Journal of African Business, 19(1), pp.86-
104.
Arnold, D.G., Beauchamp, T.L. and Bowie, N.E., 2019. Ethical theory and business. Cambridge
University Press.
Asiri, A., Greasley, A. and Bocij, P., 2017. A review of the use of business simulation to enhance
students' employability (WIP).
Asongu, S.A. and Odhiambo, N.M., 2019. Challenges of doing business in Africa: a systematic
review. Journal of African Business, 20(2), pp.259-268.
Bughin, J. and Chui, M., 2017. The internet of things: assessing its potential and identifying the
enablers needed to capture the opportunity. In The Internet of Things in the Modern
Business Environment (pp. 111-125). IGI Global.
Comberg, C. and Velamuri, V.K., 2017. The introduction of a competing business model: the
case of eBay. International Journal of Technology Management, 73(1-3), pp.39-64.
Henryk, D., 2020. Interim management as a new approachto the company management. Review
of Business and Economics Studies, (1), pp.20-26.
Kim, B., Kim, H. and Jeon, Y., 2018. Critical success factors of a design startup
business. Sustainability, 10(9), p.2981.
Liu, Y. and Vrontis, D., 2017. Emerging‐market firms venturing into advanced economies: The
role of context. Thunderbird International Business Review, 59(3), pp.255-261.