Business Environment Analysis: Organization Types, BMW UK Case

This report provides a detailed analysis of the business environment, focusing on different types of organizations such as public, private, and voluntary sectors, and their legal structures. It examines the size and scope of organizations like BMW, NHS, and Red Cross, highlighting their unique characteristics and purposes. The report further explores the relationship between different organizational functions and how they link to organizational objectives and structure, using BMW as a case study. It identifies the positive and negative impacts of the macro environment on business operations through PESTLE and Porter's Five Forces analyses. The report also conducts internal and external analyses of BMW UK to identify strengths and weaknesses and their interrelation with external macro factors. Desklib provides access to this and other solved assignments for students.

BUSINESS AND BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain different types and purpose of organizations, public, private and voluntary sectors
and legal structures......................................................................................................................1
P2 Explain the size and scope of a range of different types of organisations.............................3
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure.......................................................................................4
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................7
P5 Conduct an internal and external analysis of BMW UK and a similar organization such as
BMW etc. in order to identify their strengths and weaknesses...................................................9
P6 Explain how strengths and weaknesses interrelated with the external macro factors..........10
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................2

LIST OF TABLES
Table 1: Size and scope range of different organizations................................................................3
Table 2: PESTLE analysis of BMW................................................................................................7

LIST OF FIGURES
Figure 1: BMW as private sector organization................................................................................1
Figure 2: NHS as public sector organization...................................................................................2
Figure 3: Three interrelated departments in the organization..........................................................6
Figure 4: Porter’s five force model analysis....................................................................................7
Figure 5: SWOT factors...................................................................................................................9

INTRODUCTION
There are various types of organization such as public, private or voluntary and all these
organizations have their scope, size, and structure to operate their business in this competitive
market. It is essential for the organization to identify their structure and scope in the market so
that they can efficiently make relevant strategies to achieve the benefits. This report will consider
the case of BMW organization which is one of the famous automobile organizations based in
Germany and provide new model cars to their customers on a regular basis. This report will
identify the scope, size, and structure of BMW, NHS and Red Cross organizations. The report
will identify the SWOT and PESTEL of BMW which shows their strengths and weaknesses
along with the external and internal factors that may affect their operations and functions.

TASK 1
P1 Explain different types and purpose of organizations, public, private and voluntary sectors
and legal structures
There are different types of organization that has distinct uniqueness and nature of achieving
competitive advantages in the market. Every organization has the diverse range that is divided as
per their structure which involves voluntary, public and private sector. Different legal structure,
scope, and size of the organization which is discussed as below:
Private sector organisation
Private sector organizations or business are managed and owned by some private owners only,
and they can be in the form of the partnership, sole traders or organization. This will fall under
the category of only profit-making organizations which is providing their quality of products and
services in the market (Johnson et al., 2017). These types of organizations can plan their
effective strategies to expand their business and gain competitive benefits also. The most suitable
example of private sector organization is BMW which is one of the leading automobile
organizations based in Germany.
Figure 1: BMW as private sector organization

Legal structure: A privately owned organization such as BMW can take a huge risk, and they
are mainly lying on their decision making by the owners only. BMW is one of the famous
automobile organizations which has very strong and long-term base of their customers and also
establish their productive positions in the market.
Purpose: The primary purpose of its formation is to optimize the profit and extend their brand
image in the competitive market by developing an efficient and strong relationship with their
internal and external stakeholders. They are dealing with providing most advanced featured and
stylish models of cars on the market.
Public sector organisation
Public sector organizations are mainly managed and controlled by the government, and it is
under the public ownership. Public sector organizations are free to deal in the stock exchange
market also. This ownership is divided into the public shares which may have an active presence
in the counter market (Bouckaert et al., 2016). These organizations are non-profit making
organizations whose primary purpose is to provide services to society for their welfare. NHS is
one of the leading organizations which fall under this category.
Figure 2: NHS as public sector organization
Legal structure: NHS is the public sector organization which is concerned with the healthcare
professional appointment which will provide the efficient services to their patients in the UK.
Strategies for leadership are also optimized in a more efficient manner which includes a choice
of selection to their patients in respect of treatment.

Purpose: NHS organization is mainly formed with the motive of promoting their health
awareness in the society (Van Dooren et al., 2016). This provides full support of their
professionals by giving comfort services to their patients.
Voluntary sector
Voluntary sector organizations are formed by the union trade or their groups that are mutually
entered in any agreement which acts as the volunteers to resolve any common issue. These are
the non-governmental organizations that work to improve the standards of their society.
Legal structure: They can follow the suitable structure in a legal way which optimizes the
resources for the organization benefits. They follow guidelines which are used for any target to
meet.
Purpose: There purpose is to protect and support the victims which are armed by the forces to
promote the sacrifice which are made by the nation (Ragsdell et al, 2014).
Structure, size, and scope of the business are directly connected with the objectives of the
organization and their operations. An organization that has efficient structure can set a high
target for their business to achieve. For satisfying the requirements of the customers, they can
create a suitable structure in their workplace. Employees also need to have proper knowledge
regarding their responsibilities and roles.
Business organizations need to set their objectives considering the scope and size. The
organization can set effective aim if the business can invest their funds in the projects to attain
high profits (Butler and Wilson, 2015). This statement can be explained by taking the example of
BMW which is the world largest automobile industry that has their objectives set by identifying
the customers and their expectations regarding vehicles. Business set their goals of operations by
reviewing the business scope in the market.
P2 Explain the size and scope of a range of different types of organisations
Following is the table which shows the scope and size of private, public and voluntary
organizations by taking an example of BMW, Red Cross and NHS:

Table 1: Size and scope range of different organizations
Range BMW Red Cross NHS
Type of
organization
BMW is the privately
owned organization which
is operated for achieving
high profits by offering
advance featured and stylish
cars in the market.
Red Cross is the voluntary
organization which is mainly
based on improving the
society and their standards.
NHS is the publicly
owned organization
which provides their
quality of services in the
medial and health care
form.
Scope of the
organizations
Scope of BMW is based on
enhancing the satisfaction
level of their customers.
Their main provision is to
provide quality of features
in their cars and effective
services to their customers.
This is based on spreading
dignity between the people
by providing risk
management and assistance
for people future benefits.
NHS have main scope o
improve the medial and
health conditions of the
UK people (Drucker,
2017).
Size of the
organization
BMW covers very large size
in the market as they have
many stores which provide
latest car models to their
customers. Number of
workers is associated with
them.
Red cross organization
serves their services in
various countries with the
15,000 of the volunteers who
take active participation.
NHS services are
divided between people
and provide services to
around 64 million of the
people in UK and
around 50 million in
Britain.
Structure of the
organization
BMW organization follow
flat structure to meet the
requirements of its
stakeholders and to attain
profits
They follow flexible
structure which keeps the
changes on the business as
per its situations (Forsythe
and Rieffer-Flanagan, 2016).
NHS organization
follow hierarchical
structure as it divided
the roles and
responsibilities equally.

P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure
There are different types of organization which follow the different organizational structure and
that cover roles and responsibilities. In the organization, there are various departments that
perform their functions which help the business to achieve their objectives. There are various
types of departments in BMW organization which are explained as follows:
Human resource department
BMW organization is employing around 125000 number of employee in all over the world.
Human resource department in BMW organization is concerned with the efficient recruitment,
training, and selection of the employees so that they can achieve their ultimate goals and
objectives (Camisón and Villar-López, 2014). Department of the Human resource is mainly
responsible for the development of the workforce in BMW. HR department provides enormous
advantages and benefits to their employees for enhancing the employees working capacity by
using various techniques and strategies for promoting their organizational scope in the market.
Marketing department
Marketing department plays a significant role in private sector organization as marketing is used
to promote their latest car models in the market and to attract their targeted customers. Marketing
manager of BMW organization examined the entire market of the customers to identify the
requirements and expectations of the customers to attain the adequate growth in this competitive
market (Feng.et.al., 2015). Marketing is the most effective process in the development and
growth of the business as the invest millions of their funds to conduct the market research to
attract a number of customers. This plays significant part in generating high revenue for BMW
which is consists of the services and products. BMW organization is following promotional and
campaigns techniques to promote their latest car models and its services in the market.
Finance department

Finance department plays an active role in the functions of BMW because this department is
responsible for managing the funds and budgets and financial issues of the organization. This
department overviews the commercial operations of the business as it is responsible for
maintaining long-term growth in this competitive environment. The finance department is used
to manage all types of risk in the organization which is faced by them during their business
operations (von Rosenstiel et al., 2015). BMW structure is comprised of the various department,
and they are playing their roles and responsibilities. This organization has its primary purpose of
offering new technology and advance features in their new models and quality of services to its
customers.
Figure 3: Three interrelated departments in the organization
All these departments are interrelated with each other because they are working for a common
goal which is related to achieve the organizational goals. Production, sales, marketing, finance,
etc. are the departments who are working together to attain the objective of their organization.
There is a connection between these departments and its functions which help the organization to
under the lacking areas efficiently and then effective make strategies to overcome the issues
(Fernando, 2011). Following are the advantages and disadvantages of this interrelationship
between these department functions for the organization:
Advantages and disadvantages
Human resource department
Marketing department
Finance department

 Relationship between employee in the organization help to manage the cooperation and
coordination.
 Functions of each department help to increase the profit level by collecting information’s
from different sources.
 It will enhance the competitive spirit between the departments which may cause internal
conflicts.
 Awareness about the roles and responsibilities sometimes become major issue between
the departments.
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples
There are different types of factors that will put a positive and negative impact on the operations
and functions of the business. To understand the effect of these factors on the business, BMW
organization is using Porter's five force model analysis in their business. There are various
negative and positive factors of BMW business which are discussed as follows:
Figure 4: Porter’s five force model analysis
Threats of new entry in the market
There are various new entries in the market which create massive competition in the market for
BMW as they are the primary threats to the existing organization. There is high pressure on the
organization to enhance their competition level in the automobile industries. This pressure is