Business Environment: Public, Private, Voluntary Report

This report provides a comprehensive analysis of the business environment, focusing on the types and purposes of private, public, and voluntary organizations, along with their respective legal structures. It examines the size and scope of organizations like Carillion, Maplin, and Wellcome Trust, highlighting their relationships with organizational functions and objectives. The report delves into the interrelation of macro-environmental factors with organizational strengths and weaknesses, using examples from the selected companies. It covers political, economic, social, technological, legal, and environmental factors impacting the businesses. The report provides an overview of the organizational structures and the impact of internal and external factors on business performance, with a conclusion summarizing the key findings and providing references to support the analysis.

Business and Business
Environment

Table of Contents
Business and Business Environment...............................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Types and purposes of private, public and voluntary organisation and their legal structure.3
P2 Size and scope of different organisations..............................................................................4
P3 Relationship between organisational functions and their link to organisational objectives. .5
TASK 2............................................................................................................................................8
Covered in ppt.............................................................................................................................8
TASK 3............................................................................................................................................8
P6 Interrelation of macro-environmental factors with organisational strength and weaknesses 8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment is a collection of individuals, organisations and internal-external
factors which influence the businesses. To analyse and interpret any business organisation there
are few factors which should be considered like political, social, technological, legal etc, which
has its own positive and negative impact over the business firms. In this report three companies
are selected according to their nature of ownership which are Carillion, Maplin and Wellcome
trust, all these companies has a similarity that due to few financial crises and administrative
inefficiencies all these organisations are on their way of dissolution and permanent closure.
TASK 1
P1 Types and purposes of private, public and voluntary organisation and their legal structure
Every organisation has a unique legal structure according to their nature of size, scope
and structure and every organisation has a obligation to follow all legal compulsions which are
pre determined by the government authority. Such organisations can be classified as public,
private and voluntary organisation and there legal structure is presented below:
Public company
Public companies include all organisations whose major ownership or shareholding is in
hands of general public. Shareholders and appointed directors has major control over the
activities and operations of the company ( Chavis, 2011).
Carillion is a construction company based in United Kingdom. Carillion has acquire
multiple business and was listed on the London Stock Exchange, but after experiencing financial
difficulties in past few years it is on its of liquidation. The main purpose of Carillion is to create
long term value for its stakeholders and make world a better place to live.
Legal Structure of Public company
A public company has a separate legal entity which has a compulsion of having atleast
two shareholders with a minimum issued capital of 50000 euros. Public companies are
mandatory to be registered with all necessary compilations.
Private Company
Private company is an organisation which is owned by private individuals or group of
individuals, who may not offered their shares in general public and operates under legal
restrictions which are less than public company.

Maplin is a electronic goods retailer based in United Kingdom, which had hundreds of
stores in UK and North Ireland but after experiencing administration failures, they are on their
way of permanent closure. The main purpose of Maplin is customer satisfaction and make sure to
put customers first ( Chow, 2012).
Legal structure of Private company
 Sole proprietorship – Sole Proprietorship is type of private organisation which may
need license or registration according to the nature of business, it involves self
employment and a sole owner has control over all operations of the business.
 Partnership – Partnership involves two or more partners to carry out a legal business and
all partners has unlimited liabilities against debts of the organisation.
 Private Company – Private limited companies has compulsory requirements of
registration with necessary members, directors and paid up capital.
Voluntary sector
Voluntary sector involves organisations which work for the development of society with
the help of volunteers which has sole purpose of welfare of society and not to earn profit.
Organisations like Wellcome trust, which is a UK based non profit organisation has main
purpose of society welfare.
Legal structure of Voluntary sector
Organisations involved in voluntary sector are needed to be registered and the volunteers
are required to fill all necessary documents.
P2 Size and scope of different organisations
Organisations like Carillion, Maplin and Wellcome trust has different size and scope with
various goals and objectives. Size and scope of these organisations is mentioned below:
Carillion
 Size: Carillion is a public company involves mainly in construction business and also
engaged in facilities management which aims to improve infrastructure and make world a
better place to live. With 43000 employees in total, Carillion operates in UK, Canada,
Middle East and Caribbean. In 2017 Carillion has sales of approximately 1.7 billion
euros, but due to financial breakdown current worth of Carillion is 61 million euros.

 Scope: Being a construction company based in developing countries, results in diverse
scope of activities. Carillion is also engaged in facilities management activities like
mechanical, plumbing, electrical services which results in wider scope.
Maplin
 Size: Maplin is a electronic goods retailer who had 217 stores in total with net worth of
166 million euros but after administration failure Maplin has faced significant decline in
their net profitability, Maplin is currently facing a net loss of 2.07 million euros which is
going to result in permanent closure ( Craig, 2012 ).
 Scope: Scope refers to the diversity in the activities of Maplin. Maplin is engaged in
retail business of electrical products which are delivered to general public irrespective of
their status or place of living. Maplin is also engaged in activities like repair and
customised electrical goods, due to the less scope of Maplin there are huge chances of
permanent closure of this organisation ( Commander,2011).
Wellcome trust
 Size: Wellcome trust is a non profit organisation based in UK which is mainly engaged in
activities of biomedical research. Founded in 1936, Wellcome trust is known as the one
of the most wealthiest charitable foundations of the world, but due its frequent and
continuous failures has resultant to reduce the net worth of the organisation. Wellcome
trust at its good times had a net worth of 23.2 billion euros.
 Scope: Wellcome trust is mainly engaged in activities related to biomedical research,
apart from which there are few other activities such as Cancer Genome Project, Ebola
Emergency Initiative etc.
P3 Relationship between organisational functions and their link to organisational objectives

Every organisation has diversity in their functions due to different departments classified
according to the activities. Companies like Carillion is required to understand the importance of
relationship of various functions and departments of the organisation for effective management,
Relationship between various functions of Carillion are:
 Marketing – Marketing department of Carillion is engaged in activities of promotion and
advertising which can increase the demand of its products, this department is directly
linked with production and sales department as efficient marketing system results in
higher demand which ultimately lead it to increased produced units ( Cuervo‐Cazurra,
2011).
 Operation/ Production – Production or operation department of Carillion is engaged in
meeting demands of the products, due to diversity in activities of this department all other
departments are somewhere linked wit this department either directly or indirectly.
Primary aim of this department is to fulfil the demand and produce quality goods in less
possible prices.
 Finance – Finance department of Carillion is engaged in activities related to money, they
have responsibility of preparing a budget and then comparing that budget with actual
outputs. Finance department is the core of an organisation and directly linked with all
other departments as the decision of appointing money for every department is done by
finance manager of an organisation only ( Deasy, 2016).

 Human resources – Human resource is a staffing department of any organisation, at
Carillion all the employees are appointed by human resource manager. Personnel
management or human resource management is considered as the asset management
department because employees are considered as the human assets of an organisation,
this department is linked with all those departments where there is a need to human
resource like production, sales, marketing etc.
Organisational Structure
Organisational structure is a formation of departments classified according to activities,
different types of organisational structures are described below:
 Functional structure – Functional structure classifies all the employees according to the
set of task assigned to them and their roles in the organisation.
 Divisional structure – In divisional organisational structure activities are classified
instead of employees, these activities are classified according to the skill required for
performing a certain activity.
 Strategic business units – Strategic business unit structure is ideal for businesses which
operates in more than a country where organisation is divided in different business units
having all distinctive departments.
 Matrix organisational structure – This structure is different from others as it imposes
dual answer-ability and reporting, or according to this structure employees has a
responsibility to report to more than one manager as relationships are classified into
matrix ( Hilton, 2013).
TASK 2
Covered in PPT
TASK 3
P6 Interrelation of macro-environmental factors with organisational strength and weaknesses
Relating external environment with organisational internal environment is significant for
an organisation as it defines that how each external factor influence strengths and weaknesses of
the organisation.
Political

 Strength: Government of United Kingdom always promotes and supports innovative
business ideas and introduction of new technologies, due to which Carillion has an
advantage of low political interference.
 Weaknesses: Carillion operates in more than a country which makes it difficult to
manage all political and legal factors.
Economical
 Strength: Carillion operates in countries like United Kingdom which has quality
infrastructure and stable economy which results to be an advantage or strength for this
country.
 Weaknesses: Taxation policies and foreign exchange rates changes rapidly which makes
it difficult for Carillion to earn reasonable profit.
Social
 Strength: Carillion has human resource of 4500 in total which is proved to be their
strength, with the help of large human resource its becomes easy to understand
preferences and trends of market.
 Weaknesses: Carillion deals in multiple countries with huge number of clients who has
individual tastes and preferences and fulfilling needs of all clients is comparatively
difficult for Carillion ( Welford, 2013).
Technological
 Strength: Carillion uses new technologies like sustainable use of resources and energy
sustainability and they train their employees to work efficiently so that no harm could
cause to environment.
 Weaknesses: Competitors of Carillion offers new technological advancements due to
which production cost of Carillion has been increased.
Legal
 Strength: Carillion has 4500 employees including a whole team of legal advisors which
helps organisation to tackle all legal factors.
 Weaknesses: Due to diversity of activities in different countries, Carillion faces
difficulties in understanding and managing laws and legislations of all countries.
Environmental

 Strength: Carillion uses technologies which are beneficial for the environment like
sustainability in activities and sustainable use of energy etc.
 Weaknesses: Carillion has no solutions for the problems of waste management and
recycle which can also influence environment in negative manner.
CONCLUSION
By considering above report it can be concluded that every business either small scale or
large scale, private or public has it own internal and external influencers which influence
strength and weaknesses of an organisation. Every organisation has a possibility of failure if their
management is lacking in fulfilling the requirements of consumers, private organisation like
Maplin has less legal compilations than a public company like Carillion but both the companies
are on their way of permanent closure or dissolution due to inefficiency in administration and
financial crises.

REFERENCES
Books and Journals
Chavis, L. W. , Klapper, L. F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review, 25(3). pp.486-507.
Chow, A. T. , et. al., 2012. Computer readable medium with embedded instructions for providing
communication services between a broadband network and an enterprise wireless
communication platform within a residential or business environment. U.S. Patent
8.155.155.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
Cuervo‐Cazurra, A., 2011. Global strategy and global business environment: the direct and
indirect influences of the home country on a firm's global strategy. Global Strategy
Journal, 1(3‐4). pp.382-386.
Deasy, S., et. al., 2016. Controlling use of a business environment on a mobile device. U.S.
Patent 9.247.042.
Hilton, R. W. and Platt, D. E. , 2013. Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.
Prajogo, D. I. , 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics, 171.
pp.241-249.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150.
pp.35-45.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.