BTEC HNC Business and Business Environment Report - Unit 1

This report provides a detailed analysis of the business environment, covering various types of organizations including public, private, and voluntary sectors. It explores the purpose and legal structures of these organizations, using examples such as BBC, Tesco, and Oxfam. The report examines the size and scope of these organizations, their functions, and how they connect to organizational structure and objectives. It also identifies the positive and negative impacts of the macro environment on business operations, supported by examples, and includes a SWOT analysis to assess strengths, weaknesses, opportunities, and threats. The report further explains the interrelation between strengths, weaknesses, and external macro factors, offering a comprehensive overview of the business environment.

Business and business
environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
P.1. Different types and purpose of organisation?......................................................................3
P.2 Size and scope of different types of organisation?...............................................................5
P.3 Relationship between different organisation functions and how they are connected to
organisation structure and objectives? .......................................................................................7
P.4. Identify the positive and negative impact the macro environment has upon business
operations by giving suitable example?......................................................................................8
P.5. SWOT analysis of different types of organisation...............................................................9
P.6 Explain how strength as well as weakness interrelate with external macro factor?...........10
CONCLUSION.........................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business Environment is known as marketing term which is commonly used in business
as it is a combination of various internal and external factors like employees , management,
clients, government activities , owner, technological innovation, market as well as social trend,
economic change , expectations of customers, demand & supply etc. All type of organisation
whether it is related to public, private or voluntary must be aware to regular changes and time to
time respond to these changes also so that it become possible for them to survive in the
competitive environment(Borenstein, 2021). For such report different types of companies are
selected like BBC, Tesco, Oxfam. All the organisation possess different features and the
objectives of them are also different. As some are formulate for social purpose and few are
incorporate with the intention to maximise their profit. The topics that are discuss under this
project are types of organisation along with their purpose and legal structure. Size & scope of
various different type of organisation. Different organisation function and how they link to
organisational objectives and structure are discuss under this project. Relationship between
organisational function and the way they link to organisation structure and objectives are also
explain under it. Impact of macro environment upon business operations are explain under the
assignment. In terms to identify weakness and strength , internal as well as external analysis are
tends to be consider. Discussion regarding how strength and weakness are tends to be interrelate
with various external macro factors.
MAIN BODY
P.1. Different types and purpose of organisation?
Different types of business entities are explain in detail along with their purpose in the
below mentioned paragraphs-
 Public sector organisation- These are such type of company whose affairs are managed
and control by government. There are large of employees are appointed in such form of
business entity. The audit of these firms are compulsory. Profit earning is not the
objective of these types of organisation. Their main aim is to improve social welfare. For
example BBC serve their services across the World by performing news broadcasting
(Coen, 2021)

Purpose- the main reason behind incorporation of such type of company is to offer
services to public through using optimum resources.
Legal structure-
Local government: It includes electricity Board, water works, municipality board,
various other development authority. They tends to collect amount in the form of community
charges that are commonly describe as council tax (Czinkota, 2021)
State Government: It is an appropriate authority who has full control over the company
as all the advantages or benefits in terms to working hours , payment of wage are paid as per the
specific applicable laws of state government. The appropriate authority under such type of
organisation is SG.
Central Government:They are responsible to collect taxation from individuals, firms,
HUF, company in the form of Income tax. C.G. is the authority who has control over the affair of
the company. In the organisation which are under the control of central government all the
provisions, rules and regulation are follow by company which are applicable a per CG. In such
type of organisation salaries and benefits are given as according to appropriate government i.e.
Central Government ( Daft, 2021)
Example : BBC is public sector company who has full control of C.G. In the business affairs of
the company.
 Private sector company- In this form of business the full control are in the hands of
individuals. In their name ending the word pvt ltd, must be added. such type of
organisation are tends to be manage by an individual, firm or group of people called as
partners. For example Tesco is the example of such type of company.
Purpose- The main objectives of such type of organisation are to gain maximum profit
and provide tough competition to their competitors and gain competitive advantage (Doan, 2021)
Legal structure-
Limited Liability Partnership: It is a separate legal entity that are registered under LLP
act. It involve partners and designated partners. In this liability of them are tends to be restricted.
The liability of partners are limited by guarantee and in some case limited by share. Under this
the document memorandum of understanding are tends to be created. As it posses the features of
both partnership as well as of company.

Sole proprietorship: It involves sole traders. In this only one single person has full
control over the business. The whole profit are tends to gain by individual only in this form of
business. In this there is no need to make any agreement or control because the whole control
are in the hands of one persons only. In such type of business individual are responsible to take
licence to perform the business like licence for taxi driving, trading etc.
Partnership: such type of business are come into existence when there is an agreement
between two or more firms, individuals. In this the deed is tends to prepare under which profit or
risk sharing ratio are mentioned. This form of business has unlimited liability to partners. At the
time of admission or retirement of partner alteration in deeds are needs to be done. In this form
of business, Firm are tends to be get registered under partnership act (Hameed, 2021)
 Voluntary organisation: It involves growth of persons who are willingly to enter into an
agreement to form a organisation like Trust, Society, NGO's in order to accomplish a
objective. Oxfam is a global charitable organisation whose main objective is to reduce
poverty in the country.
Purpose- The main reason behind to develop these type of organisation is to make
upliftment of society by improving the standard of people. Profit making is not the goal of these
form of companies.
Legal structure-
Trust: In involves a person who has controlling authority known as trustee. They have
full control over the assets of the trust. This type of company are incorporated under the Trust
Act.
Society: It was tends to registered under the society act. It involves members who
perform the activity in the society. It has common seal as well as have features of separate legal
entity.
NGO: The source of income of these company is the amount of subscription, donation.
For social welfare these are tends to be incorporate (Kasim, 2021)
P.2 Size and scope of different types of organisation?
BBC
Background: It was established in the year 1922. the brand attain large amount of funds
from business and households who have the facility of T.V.

Product/ services offered: It serve the services through providing national television
channels like BBC iplayer, BBC news, BBC one etc.
Scope: to expand their services by emerging the market in various different countries like
India, china etc.
Size: More than twenty thousand workforce are committed to BBC.
Mission: To capture large customer base through entertaining the audience from their
programmes.
Vision: To become most innovative and creative company.
Stakeholders: Local community, program editor, local community are few example of
their internal as well as external stakeholders.
Tesco
Background: It is 3 largest retailer in all over the World. In the year 1919 it was
founded. It has its headquarter in UK.
Product/ services offered: It deals in retailing sectors and offer groceries, clothing,
electronics to the audience. Online services are also provided by it to their customers.
Scope: Tesco had a scope of improvement in delivery of their services as well as in their
technological involvement.
Size: It engaged around forty thousand employees in their stores.
Mission: Their mission is to enhance large customer base as well as increase profitability
so that it become easy for them to survive in the competitive environment.
Vision: To earn loyalty from their customer which helps to retain customers for long
term.
Stakeholders: Their customers, suppliers, employees , trade unions are their main
stakeholders (Lartey, 2021)
Oxfam
Background: It is NGO which serve their service not for profit making but to improve
standard of society.
product/ services offered:. They work in context to provide services which are related to
education, health and safety measures, poverty, livelihood etc
scope:to increase number of volunteers with the intention to raise social welfare.

Size:Oxfam works across the World near around 94 countries therefore they have approx
fifty thousand volunteers all across the globe .
Mission:To become favourite charity organisation as attract huge funds in the form of
donation.
Vision:Their vision is to eliminate poverty and create fair world.
Stakeholder: subscribers, volunteers, communities,suppliers and many other people who
are committed to business operation are the stakeholder of Oxfam.
P.3 Relationship between different organisation functions and how they are connected to
organisation structure and objectives?
The departments of organisation is highly dependent on each other directly or indirectly. Tesco
PLC is a public limited company in which their main motive is to earn profit which is possible
only if there is a proper coordination between their different departments (Wetherly, 2014). The
relationship between various departments are discussed below:1. Marketing and Human Resource Department : Marketing department is highly
dependent on HR department for their marketing personnel for promotional activities as
HR people are responsible for hiring the marketing people who can best contributes to
their sales. The proper coordination between these two departments of Tesco leads to
increase in promotional activities which further helps in profitability of business.2. Purchasing Department and R & D Department: The expansion of market depends on
the marketing research and the quantity of purchasing the inventory depends on
expansion of markets. In order to expand the market share in different countries of Tesco
PLC, they rely heavily on the research team (McAdam, 2021)
Organisational structure of public and private sector company
Matrix organisational structure- It includes the features of two or more type of
organisational structures. The matrix organisation is the structure uniting these other
organisational structure to give them balance. In this there are two chains of command, where
project team member has two managers or bosses.

Hierarchical organisational structure- It is company's chain of command, from top
management as well as executives to genera workforce. Where there is single leader this method
is most common as hierarchical structure are used by both BBC ad Tesco.
P.4. Identify the positive and negative impact the macro environment has upon business
operations by giving suitable example?
Tesco
Political factors: As it include various different factors which are relates to corruption, political
stability, tax policy, labour law, trade restrictions, government policy etc.
Positive Impact Negative Impact
 Due to the reason of political stability
in the states of united Kingdom , low
cost are tends to be involve in terms to
make any changes in rules and policies.
 Due to imposing of import duty it tends
to diminish the profitability of business
because large part of income are paid in
the form of duty.
Economic Factor: these are relates to exchange rate, disposable income, interest rate,
unemployment rate, economic growth, exchange rate etc.
Positive Impact Negative Impact
 Due to high purchasing power of
customer it can make positive impact
on sales also because customers can
afford to buy the quality product.
 Condition of inflation are tends to be
developed due to Brexit. It make the
product costly which negatively affects
sales also.
Social factor: are connected to population rate, safety emphasis, lifestyle attitude, factor related
to health and safety measures, age distribution and many other also.
Positive Impact Negative Impact
 With the increment in the population
rate leads to increase the level of sales
that supports in terms to survival for
long term.
 Due to variation in the demands of
customers it make impact on sales of
tesco because now the people become
more concerned to healthy food items.

Technological factor: Technological incentive, research and development activity, Automation,
Innovation, Technological awareness are the following elements that cover under this factors.
(Rao, 2021) .
Positive Impact Negative Impact
With advance technology tesco attract large
customers by providing them facility to home
delivery as well as online shopping.
As It has large competitors which tends to
affect the sales because it diversity the
audience towards those who offer the products
at low cost.
P.5. SWOT analysis of different types of organisation
SWOT in context to BBC
Strength: BBC is oldest as well as most famous largest broadcaster in all over the
country and also across the globe also. It has good brand image in the eyes of audience. It tends
to be consider as most fastest mode of news broadcaster in context to radio ad television.
Weakness: biased opinion of audience in terms to news coverage. Also cost of
operations are tends to be high whereas their competitors provide services and run their business
at very low cost. Which is great drawback to BBC.
Opportunities: Due to increase the demand of audience it has great opportunities to
expand their business in the many countries like Japan, India, China etc. Also has great chance to
get more concentrate to kids channel, On discovery, innovation, fashions and expand their
business operation which helps them to attain competitive advantage.
Threat: threats of introduction of new channels, or lauding domestic channels.
Tesco SWOT
Strength- have wide diversified range of product, having large customers base because it
serve their services to different location through operating their stores in different location of
country.
Weakness- It operation are failed and not successful in United States. For their survival it
totally depends on market of United Kingdom.
Opportunities- Tesco had great chance to expand their business by introducing more
product in their stores Like on non household product.

Threat- Price war among competitors, very expensive to introduce their services to
various different new locations. Fluctuation in the countries currency rate is the great threat faced
by company.
P.6 Explain how strength as well as weakness interrelate with external macro factor?
Political factor- As these are concerned to government intervention for example FEMA,
income tax, trade restriction, taxation related policy.
Strength Weakness
 Due to large number of formalities as
well as to restriction on foreign trade it
not become simple to take licence
easily so it helps to reduce the level of
competitors. Which helps them to stand
in a monopolistic situation.
 High rate of taxation tends to lowers
the revenue of the business.
Environmental factor: these are related to disposable income, exchange rate,
unemployment rate. These can affect the purchasing power of people.
Strength Weakness
 With increase in the rate of exchange it
leads to raise value of currency.
 Non availability of appropriate number
of experience employees are great
weakness to Tesco.
Social factor: Population trend are present under this factor for example income distribution,
health and safety measures, career attitudes,population rate and so on.
Strength Weakness
Rapid increase in population rate leads to
improve the level of sale therefore it is strong
strength to the organisation.
High taxation rates in domestic country are
great weakness to business.

Technological factor: These are pertain towards innovation and cover various other factors which
are related to technological incentive, innovation etc.(Siregar, 2021)
Strength Weakness
R&D as well fully automate services are great
strength to Tesco.
Huge involvement of cost to meet the
condition related to introduction of innovative
plans.
CONCLUSION
After deep analysis it is observe that to run the business smoothly it is important to work
as per the legal compliance. It is important to develop corporation and coordination between staff
members of different department so that it become to run the business smoothly without any
interruption. As according to the size of organisation structure are fixed for the purpose to give
command/ direction.

REFERENCES
Books and Journals
Borenstein, L., 2021. It's Personal: The Business Case for Caring. GIL Press.
Coen, D., Katsaitis, A. and Vannoni, M., 2021. Business lobbying in the European Union.
Oxford University Press.
Czinkota, M., Khan, Z. and Knight, G., 2021. International business and the migrant-owned
enterprise. Journal of Business Research, 122, pp.657-669.
Daft, R.L., 2021. Management. Cengage Learning.
Doan, M.C. and Kosaka, M., 2021. Agricultural business innovation with new ICT: Case studies
of Fujitsu, spread and MimosaTEK. In Business innovation with new ICT in the Asia-
Pacific: Case studies (pp. 177-208). Springer, Singapore.
Hameed, W.U., Nisar, Q.A. and Wu, H.C., 2021. Relationships between external knowledge,
internal innovation, firms’ open innovation performance, service innovation and
business performance in the Pakistani hotel industry. International Journal of
Hospitality Management, 92, p.102745.
Kasim, E., Stöhr, J. and Herzig, C., 2021. Promoting sustainable palm oil in supply chain
strategy: a food business case study. Qualitative Research in Organizations and
Management: An International Journal.
Lartey, E.K. and Nigatu, G., 2021. Remittances and manufacturing sector growth in sub-Saharan
Africa. International Economic Journal, pp.1-19.
McAdam, M., Miller, K. and McAdam, R., 2021. A micro level investigation of stakeholder
motives on university technology transfer business models. Studies in Higher
Education, pp.1-14.
Rao, S., 2021. International business environment. Himalaya Publishing House.
Siregar, D.I. and Binangkit, I.D., 2021. BUSINESS VALUE-ADDED WITHIN THE
CIRCULAR BUSINESS MODEL: A MULTIPLE CASE ANALYSIS. Jurnal Aplikasi
Bisnis dan Manajemen (JABM), 7(1), pp.231-231