Business Environment: Analysis of BP and Organisational Functions

This report provides a comprehensive analysis of the business environment, focusing on British Petroleum (BP) as a case study. It begins with an introduction to the business environment and its influence on business operations, followed by an examination of different organizational types (public, private, and voluntary) and their respective purposes, legal structures, and stakeholders, using NHS, BP, and Oxfam as examples. The report then explores the scope and size of these organizations. A central section of the report analyzes the interrelationship between various organizational functions, such as HR, IT, marketing, and finance, and their alignment with organizational objectives. It also investigates the positive and negative impacts of the macro-environment on business operations using PESTLE analysis. Internal analysis is conducted through a SWOT analysis to identify strengths and weaknesses. Finally, the report explains how these strengths and weaknesses interrelate with external macro-factors, providing a holistic view of the business environment and its implications for BP.

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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Various purposes and types of different organizations .........................................................1
P2 Explain the scope and size of organisation............................................................................3
TASK 2............................................................................................................................................1
P3 Relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................1
P4: Identify the positive and negative impact the macro-environment has upon business
operations: ..................................................................................................................................1
TASK 3............................................................................................................................................3
P5 Internal and external analysis of business organisation in order to identify strength and
weaknesses..................................................................................................................................3
P6: Explain how strengths and weaknesses interrelate with the external macro-factors. .........4
CONCLUSION................................................................................................................................5
REFERENCES ..............................................................................................................................6

INTRODUCTION
A business environment is majorly defined as the procedure in which evaluation is being
done by the internal as well as external aspects like customers, requirement of buyers, suppliers,
demand and supply etc. therefore, it has direct influence over the operations and progression of a
business (Bryman and Bell, 2015). Furthermore, there are assorted activities like exchange rate,
governmental policies and technological advancement etc. that are implemented and executed
through the government, therefore, an effective business environment helps the business in
evaluating resources, opportunity for business and growth in respect to attaining higher growth
and success. In this present report British Petroleum is the chosen organisation as it is a large
British petroleum company. Therefore, it is a biggest multinational gas and oil company. The
headquarter of the firm is in London, England. The company was founded in the year of 1909 by
the significant efforts of William Knox D'Arcy. This report contains the study about business
environment, therefore in this differentiation has been created among the different type of
business on the basis of their purpose, stakeholders and legal structure, thus NHS has been taken
as the public company, British Petroleum is the private company and Oxfam is recognised to be
the voluntary company. In this scope and size of different organisations are also determined
(Carlin and Schaffer, 2012). In addition to this, Relationship between various organizational
functions are also explained and positive and negative impact of macro environment has
presented with the support of PESTLE analysis and internal analysis has been taken place
through conducting swot and at the end Interrelation of strength and weakness with the external
macro factors are explained to analyzing the significance of business environment.
TASK 1
P1 Various purposes and types of different organizations
In today's modern business environment, organisations are mainly operated for the
purpose of attaining higher profitability and growth (Drucker, 2017). Therefore, there are
different type of organisations that are work for their own purpose has based on different
structure. Thus, the clear discrimination of different kind of organisations are associated as
below:
Public Company:
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This mainly defined as the sort of business that is fully controlled, managed and owned
by the government bodies. Therefore, this sort of businesses are concern on providing efficacious
services to their buyers in respect to explore their brand recognition. In this existing report NHS
is the selected public company, thus the company was begin from the year of 1948 and
significant in providing health care facilities to their customers in free of cost.
Purpose: The key purpose of NHS is to provide free health services to their customers for the
purpose of generating well being, therefore, this organisation is significant for developing the
living of people in a country (Elliot, 2011).
Legal structure: Public limited companies are mainly relay upon governmental policies and
norms. Therefore, in NHS all the decisions are mainly taken by the state and central government.
Thus, the laws and norms passes by the government authorities are discussed by the top
management of NHS and circulate among the employees of the firm.
Stakeholders: In the context of public limited company, stakeholders are recognized to be the
key aspect who plays a vital role through investing money for the purpose of gaining social well
fare. The key stakeholders of NHS are financial institutions, suppliers, government bodies,
patients, trustee, local authorities and so on.
Private Company:
This sort of businesses are mainly governed or handles by private bodies. In this sector
business are mainly executed for the purpose of gaining higher growth and profitability.
Therefore, in this individual are running their business activities individually based on some
rules and policies which are implemented by government or its bodies. It is essential for private
sector to follow these norms and structures in respect to attaining high profit at market place
(Hair, 2015). In the present case, British Petroleum is the chosen organisation, thus it is an
international oil and gas company. The company is having around 73000 employees who are
contributing their significant efforts in the growth and success of business.
Purpose: The primary purpose of British Petroleum is to generating higher profitability and
growth via providing effective services to their customers at global level. British Petroleum is the
large multinational oil and gap company with its headquarter is in London, United Kingdom. It is
one of the largest oil and gas service provider company which is operated at global level for the
primary intention of increasing revenue and profitability.
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Legal structure: The legal structure of the private firm is based on the collective decision of
higher authority of the firm in which board members, CEO and managers are involved. In the
term of British Petroleum all the decisions are developed by the top management and higher
authority of the business (Kolios and Read, 2013).
Stakeholders: Stakeholders are recognized to be the individual who are associated with the
business for the intention of gaining profit and growth. The key stakeholders of British
Petroleum are the investors, government agencies, suppliers, customers, employees and so on.
They are significant for generating higher revenue for the firm.
Voluntary Company:
In this sector, businesses are being formed out with the intention of helping out those
individual who are in need, Therefore, this sort of businesses are concern over making an
effective society for the purpose of developing good living. This organisations are not
significantly handled by the government. Thus activities are mainly handled by the external
members and the government of a country. In this present research Oxfam is the chosen
voluntary company which is operated since 1942 for the social well fare.
Purpose: The key purpose of Oxfam is to provide effective products and services to the needy
people for the intention of generating a good and healthy living. The another intention of Oxfam
is to develop the living standard of the people by providing them effective facilities.
Legal structure: The overall legal structure of voluntary businesses are encompasses over top
authorities and trusties (Osterwalder and Pigneur, 2010). Therefore, in the context of Oxfam the
decisions are mainly taken by the top bodies and the trusties.
Stakeholders: Stakeholders are mainly defined to be the individual who are very much
interested in the operations and growth of business. The key stakeholders of Oxfam are the CEO,
Leaders, staff members and so on.
P2 Explain the scope and size of organisation
Businesses are recognised to be the place where operations regarding a business is
performed, therefore, the businesses are categorised on the basis of their size and scope. There
are three type of organisations like public, private and voluntary; which are clearly defined as
under:
Public organisation: NHS
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In this existing area, NHS is terms to be the effective public organisation which is significant for
rendering health care facilities to the people. The company is operating from 1948 as the health
care service provider, therefore, the firm is providing free health care facilities to the people who
are not able to taking any kind of health care service (John Wiley & Sons.Turban, Sharda and
Delen, 2011).
Product and service: NHS is a large health care service provider which is effective in rendering
emergency treatment, health care service, vaccination, curing diseases etc. The company is also
providing all health care products like medicine, proper equipments etc.
Size and Scope: The size of the NHS is wide as the company is having around 17000 employees
who are contributing their efforts in the growth of business and in NHS around 11 percent
physician are working for company. The key scope of NHS is to develop their medical training
employer from 7500 to around 15000 in the year of 2020. Therefore, by the increasing
performance of employees NHS wants to provide efficacious facilities to their customers (Teece,
2012).
Private Organisation: British Petroleum
British Petroleum is a large multinational oil and gas company, The headquarter of the
firm is in London England, Therefore the firm is operated at global level for the primary
intention of gaining higher revenue and profitability.
Products and Services: British Petroleum has immense product range like Petroleum, natural
gas, motors fuels, aviation fuels and petrochemicals. In addition to this the company is providing
its facilities at all around the globe.
Size and Scope: The company is having around 73000 employees who are contributing their
strength in the success of the business. The company is operated through its service stations. The
major scope of the business is to become the worlds largest oil and gas service provider and
attain higher profitability and growth (Zeng and Duan, 2012).
Voluntary Organisation: Oxfam
Oxfam is the large confederation of around 19 charitable organisations that are focusing
over the alleviation of global poverty. The company has founded in the year of 1942 and works
as the non-profit organisation.
Product and service: Voluntary sector organisation work for the welfare of society like fight
with poverty, deal with emergency situation and many more. Main objective of respective sector
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organisation is to provide long term solution to the people who are going through poverty. Thus,
Oxfam company is part of global movement change because they are offering services for
encouraging people to rise their voice in relation of future security.
Size and Scope: For voluntary sector company scope is very fast and poverty issue will also
resolve at global level. Oxfam have its continuous contribution for society and they make
strategy for dealing with poverty issues (Wheelen and Hunger, 2011). Thus, respective company
have its 20 charitable organisation which help people in overcoming with issues of poverty
TASK 2
P3 Relationship between different organisational functions and how they link to organisational
objectives and structure
In an organisation, different departments are there which operate their activities in an
effective manner with the aim of improving the overall performance of company at competitive
place. Mainly, all these department has their specific roles and responsibilities to execute task
and activities in an effective way. Along with this, main functions of organisation are human
resource, marketing, sales, IT and many more (Charter, 2017). In context of British petroleum, it
is a multinational oil and gas company operate their business in over the world with the aim of
generating larger profitability level. Company have different departments and also interrelate
with each others to perform task activities for meeting set targets in stipulated time frame. As
there are inter-relationship between different departement within British petroleum are as
follows:
Human resource departement and IT department: Both are play a crucial role in
business as it provide support in effectively executing task activities in a well organised manner.
Every company needs HR departement to manage entire operational activities in systematic way.
In this, HR manager is responsible for recruiting skilled and talented employees for company
who are able to take challenges and complex task. In context of British petroleum, manager of
HRM department is responsible for providing better training and development to workers in
order to make them more productive and efficient as well. As it also have relationship with IT
department because HR manager hire skilled workers and on the other side, IT departement
provide updated and innovative software to HR division so that they easily execute their
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activities along with innovative way. This will directly contributes in increasing its profitability
level at market place.
Marketing department and Finance department: These are also important for
company because both are create profitability by creating as well as developing positive image at
market place. In this finance division maintain proper financial records of marketing departement
that directly contributes in enhancing brand image of company (Erasmus, Strydom and
Rudansky-Kloppers, 2016). In British petroleum regards, marketing departement is responsible
for analysing the market trends and customers demand to provide them quality services
accordingly. In this, finance department provide adequate fund to marketing division for
promoting their products and services in market place. Along with this, it also assist in
organising marketing campaign to invite more and more customers towards its services. This will
directly contributes in maximising the profitability level of company and also capture larger
market share from its competitors (Erasmus, Strydom and Rudansky-Kloppers, 2016). Thus, it
can be stated that both marketing and finance department is interrelate with each other as they
maintain all the records of profit and losses within the firm that assist in improving the
possibilities of attaining competitive advantage from its competitors at market place.
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Sales departement and Marketing departement: Every business organisation wants to
increase their sales by influencing large number of customers towards its services. Thus, it is
crucial for company to have a best and effective sales team for serving products and services in
market. In this, British petroleum focus on providing training to employees so that they can
easily perform their sales activities. As sales and marketing departement have better relation
because they work together for increasing profits by increasing its sales. The main focus of
marketing departement is to make attractive strategies that support sales division in attaining
their set sales targets in an effective manner with the assistance of this, British petroleum can
increase their sales and profitability through which they capture larger market share from its
rivals and also established its competitive image.
Thus, it has been evaluated that all the departement of British petroleum are interrelated
with each other and also perform their task in an organized manner. This can be contributes in
enhancing the efficiency level of company that may assist in increasing its productivity level. All
these departments are also assist in developing growth level by generating more profits and
returns as well. This is the reason that company responsible for keeping better relation between
different departments so that each and every task activities can be smoothly performed (Grigore
and Drăgan, 2015). By this, British petroleum can increase their positive image and invite more
and more consumers towards its quality services.
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P4: Identify the positive and negative impact the macro-environment has upon business
operations:
The macro-environment factors are those elements which are present in the economy rather then
present in particular segment. The PESTLE analysis is used to examine the external factors
which can affects the operations activities of the British Petroleum and minimizes the negative
impact and utilization the positive impact on business operations.
Political factors: it plays a important role in determining the factors that have impact on the
British Petroleum profitability in the marketplace. The company operates at different political
environment which affects its production activities . It includes factors such as trade regulation,
legal framework and corruption in the economy.
Positive: This factor helps in expanding its operations activities to different countries and grow
its business to next level.
Negative : Under this factors, the British petroleum has to follows various legal laws to operate
their activities and different countries have different laws to be followed.
Economical factors: It includes factors such as inflation rate, interest rate and foreign
exchange rates and etc, which influence the business activities in the economy . The countries
like UK does not likely to have a impact on the British petroleum, the income level of the
country are expected to increase in market which will lead to demand of the company product in
the target market.
Positive : The raise in income of the consumer will gain the demand of the product in different
market segment.
Negative: Their is inflation rates which have impact on the performance of the company in the
longer period of time.
Social factor: Under this factor, it is based on the customer religious, ethics, values and morale
which can affect the demand of the product in the marketplace. For example, the rate of
population in UK market grows is also increase the demand of the product and services in the
market.
Positive: It follow the proper hierarchy in the operations business of the British petroleum so
that they can operates from different demographics and increase the productivity for the
company.