An Analysis of the Business Environment and Functions: Costa Coffee

This report provides a comprehensive analysis of the business environment, focusing on Costa Coffee as a case study. It begins by defining and differentiating various organizational types, including public, private, and voluntary organizations, and their respective purposes, legal structures, and sizes. The report then delves into the size and scope of these organizations, comparing Costa Coffee with Crown Prosecution Service and Oxfam. A significant portion of the report is dedicated to exploring the interrelationship between different organizational functions such as marketing, human resources, and finance, and how these functions contribute to the achievement of organizational objectives. The report also highlights the importance of a coordinated approach and the impact of various factors on an organization's performance. In conclusion, the report emphasizes the significance of understanding the business environment and fostering positive relationships among departments to drive organizational success and profitability. The analysis incorporates key concepts and frameworks to provide a holistic view of the subject matter.

Business Environment

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types and purpose of organisations....................................................................3
P2 Size and Scope of different types of organisations...........................................................4
TASK 2............................................................................................................................................7
P3 Relationship between different organisational functions and their link with organisational
objectives................................................................................................................................7
TASK 3............................................................................................................................................7
Covered in PPT.......................................................................................................................7
TASK 4............................................................................................................................................7
Covered in PPT.......................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment is consisting of different organisational factor which contributes in
the overall performance of company. Present project is based on COSTA COFFEE a England
based coffee house which offers quality products and services to customers. The report include
discussion on different types of organisation and their purpose (Chetwood and et. al, 2014). It
also provides description on size, scope and purpose. Along with this, it also includes description
on interrelationship of different business function with one another.

TASK 1
P1 Different types and purpose of organisations
Mainly there are three types of organisation that is private, public and voluntary which
are mainly executed for separate goals. Business organisation can be divided into different
factors such as scope, turnover, size and number of employees. With reference to this, all three
business structures are explained below in detailed manner.
PUBLIC ORGANISATION
Public organisation is considered core part of every nation that controls all governmental
bodies that is local, state and central. Public sector companies are of many types that is
governmental based companies and departmental undertaking which contributes in satisfying
customers demand. The main motive of this type is to use profits for welfare purpose. In current
case, Crown Prosecution Service has been taken into consideration that is a public prosecution
agency (Crane and Matten, 2016).
Purpose Public Organisation: The main purpose of this company is to execute criminal
prosecution in Wale. Mainly this company provides legal advice to cops on legal cases.
Legal Structure of Public Organisation:
Legal structure of crown prosecution services is of higher level. In their organisations all
process of examining police evidence and decide where to take criminal proceedings are done by
few people who occupy next tier hierarchy (Sekaran and Bougie, 2016). In this organisation few
number of superiors exist. It helps in making effective decisions and formulate plans
accordingly. This method is suitable to communicate and share task effectively in order to
generate efficient results.
PRIVATE ORGANISATION
Private sector companies are mainly developed by an individual or group of people who
are working together for the purpose of profit earning. Some of the core examples of private
sector organisation are partnership, sole traders, and franchises. For current project Costa Coffee
is used.
Purpose of Private Organisation: Costa Coffee is a global brand which offers vast
range of coffee in their outlets. The company is having global presence at market place and also

popular coffee taste with quality (Gharajedaghi, 2011). The main purpose of the company is to
earn maximum profits so that their business can be developed in positive manner.
Legal Structure of Private Organisation:
Legal structure of Costa Coffee is partnership based in which top most authority is taking
different essential decisions at their own level. Here, all decisions and strategies are build up by
higher most authority so that business can grow faster. Legal structure of private organisation
includes sole traders, partnership and private limited companies. All three of them are stated as
below:
 Sole trader: It is the simple business structure in which single person operates business.
 Partnership: In this two or more person works together for single business where they
share profits and duties according to their investment ratio.
 Private limited companies: In this liability of owner is limited according to their shares
only.
Voluntary Organisation
This type of organisation are seen as the non profit organisation which are done for the
welfare purpose for local communities. Its main purpose is to provide basic necessities items to
individual so that they do not suffer for their basic need. For present scenario, OXFAM has been
chosen. The company is charitable company whose main aid is to minimise global poverty.
Purpose of Voluntary Organisation: The Main purpose of Oxfam, is to vanish poverty
across the world. The main aid of this company is to provide justice to poor people who are
facing numerous problems (Gilboy, 2016). The company focuses on collecting raw materials
from different sources and then pack them properly so that all products can be delivered to the
needy people.
Legal Structure Of Voluntary Organisation: Legal Structure of voluntary organisation
includes trust, community interest company, unincorporated association, provident society and
industrial. Legal structure of are many type some of them are stated as below:
Cooperative: It is an association of different people who collaboratively work together for the
development of the society.
Charitable organisation: It is the non profit organisation whose main motive is social well
being. The company mainly looks for the donation and charity from others so that society can
grow in effective manner.

Oxfam is following charitable legal structure as with the support of others it would be
easier for company to remove poverty from society in effective manner.
P2 Size and Scope of different types of organisations
Business environment is consist of different forces that is external and internal which
directly places impact over working pattern of business structure. It can be said that every
business organisation has certain different scope, size, purpose and structures that contributes in
attainment of the objectives. With reference to the current project, structure of different
companies are stated as below:
Basis Private organisation Public organisation Voluntary organisation
Name Costa Coffee Crown Prosecution
Service
Oxfam
Background Costa Coffee is
leading family based
coffee house of United
Kingdom which was
incorporated in 1971.
The company was
incorporated in 1986
as independent
prosecution
department which
handles different
business functions as
legal adviser.
The company is
working for poor
people so that they
could get basic
services effectively
without any difficulty.
Product and Services Coffee, tea , Sweet
snacks, sandwiches
and iced drinks.
It offers advices to
investigative agencies
and police so that
actual faulty person
can be caught.
It provides medical
services to individual
who needed it utmost.
Size The company is
having its business in
approximate 3882
locations.
The Company handles
more than 800,000
prosecutions with the
help of approximate
6900 staff.
Around 20 companies
are working with this
company for the
common motive of
social welfare.

Vision and Mission The mission and
vision statement of
Costa Coffee is to
secure world from
mediocre coffee.
The mission and
vision statement of
this company is to
behave professionally
and take right decision
without being bias.
The vision and mission
statement of this
company is to convert
world without the
poverty
Objectives The main objective of
this company is to
maximise profitability
ratio of company by
providing best
products to its
customers (Meiners,
Ringleb, and Edwards,
2014).
The main objective of
this company is to
work as the common
team that provides
effective services to
common people.
The main objective of
this company is to
make people self-
independent so that
whole world could get
free from poverty.
Structure The company is
strictly following
hierarchical structure
which supports in
executing business
activities in positive
manner.
The company works in
partnership structure
with police, court,
office and other
agencies.
The structure of this
company is trust
based.
The main difference among small, medium and large business is that number of
employees of small businesses belongs to 1 to 99. whereas, medium sized employees range is
between 100-499. On the other hand, employee range of large scale company is above 500
employees.

TASK 2
P3 Relationship between different organisational functions and their link with organisational
objectives
Relationship and function plays an important, effective and difficult role in management
handling process by working in cooperative, coordinated and organise in structured framework
to attain a specific goal designed by the board of committee members formed in an organisation.
There are various department majorly known as:
(Source: Organisational Chart, 2019)
Marketing Department: The marketing department of Costa Coffee is interrelated
with other department. For instance marketing department aware production department
about changing demand of customers so that they modify their specific role accordingly.
Costa Coffee is using divisional organisational structure. According to this, marketing
department of one division helps another one so that they can collaboratively work for
organisational goals and objectives.
Human Resource Department: This department is the soul of any organisation, due
to the staff members, they are the important asset for any firm, their within satisfaction in
Illustration 1: Organisational Chart

the organisation is very important so that organisational goals and objective can be attained
in effective manner. Human resource department is related to finance department as
according to the finalised budget of finance team HR manager finalises salary of newly
hired employees. Divisional structure of company clearly helps human resource department
in hiring employees according to the divisions effectively. As a result, both department are
collaboratively able to work for common objective in effective manner.
Finance Department: The finance department is very important and key part of every
company. In context of Costa Coffee, it can be said that its finance department is related to
every business function as they are providing finance to each department so that their
respective work could be done in effective manner. This helps them each department of
different divisions to work in effective manner according to their goals and objectives.
The relationship between different departments in the organisational culture are
directly inter linked with each other through hierarchy, line and matrix chain of functional
commands this helps in division of work through organisational charts via a structured
framework designed by the owner of a particular industry or a company. The functional
relation in an organisation build up with mutual trust and understanding with different head
of department at every level in management process. The four primary function is operation,
finance, marketing, and managing overflow and underflow of raw material and producing a
desire product and manufacturing them on the requirement of demand and fulfilling them
with adequate supply of product. So that there is no shortage of goods in the target market.
There should be an accurate forecasting and balance between demand and supply of goods
depending on the consumer demand.
TASK 3
Covered in PPT
TASK 4
Covered in PPT

CONCLUSION
From the above discussed report, it has been concluded that business environment is the sum
up of micro and macro factors which influences the operations, profitability, sustainability of any
organisation. It has also been identified that PESTLE analysis helps in understanding macro
environment. On the other hand, SWOT analysis has contributed in identification of strengths,
weaknesses, opportunities and threats pertaining for business organisations. Along with this, it
has also been seen that business organisation are mainly of three types that is public, private and
voluntary which are initiated for different different perspective and motives. In addition to this, it
has also been analysed that all business functions are interrelated with one another. For
improving performance of organisation it is essential for business organisation to develop
positive relationship among all departments so that organisational goals can be attained in
positive manner which ultimately leads to profitability of company.

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Online
Business environment. 2018. [Online]. Available through:
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