Business Environment Report: Organisation Structure and Impact

This report provides a comprehensive analysis of the business environment, focusing on different types of organizations such as private companies (Dyson), public companies (AstraZeneca), and voluntary companies (British Heart Foundation). It examines the size and scope of these organizations, linking their structure to business objectives. The report further explores organizational structures, their relationship to organizational functions, and the impact of the macro environment on business operations. Internal and external analyses, including SWOT analyses of AstraZeneca and Dyson, are conducted to measure strengths and weaknesses. The interrelation of these strengths and weaknesses with external macro factors is discussed, along with an evaluation of the impact of macro and micro factors on business objectives, highlighting the complexities and interdependencies within different organizational structures. Desklib provides access to this and other solved assignments.

Business and Business
environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Different Types of organisation.............................................................................................3
P2 Size and scope of different business organisations................................................................5
M1 How structure, size, and scope of organisation link to business objectives.........................7
P3 Organisational structure and relationship between organisational functions........................7
M2 Interrelationships between organisational functions and impact upon organisation
structure.....................................................................................................................................10
D1 Critical analysis of complexities of different organisational structures..............................10
P4. The positive and negative impact of the macro environment on the business operations
650.............................................................................................................................................11
M3. Detailed Analysis of the macro environment in the organisation ...................................13
P5. Internal and external analysis of the organisations for measuring the strengths and
weakness ..................................................................................................................................13
SWOT Analysis of AstraZeneca .............................................................................................14
SWOT Analysis of Dyson.........................................................................................................14
P6 Interrelation of strengths and weaknesses with external macro factors ..............................15
M4. SWOT Analysis and its ways in which it can influence the company .............................17
D2 Evaluate the impact of macro and micro factors on business objectives............................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Business environment is generally referred to aggregate of internal as well as external
factors which results in impacting upon operations and activities carried out by business
organisations. For instance, it includes various factors and aspects which impact upon business
operations including natural resources, employees or human resources, technology, finance,
market scenario, etc. In addition to that, a business organisation is determined as entity that
contributes values towards society as well as overall business environment by manufacturing as
well as serving customers with products and services. The primary aim of a business entity lies
in earning profit against invested capital by carrying out operations and activities in order to
serve customers with quality products as well as contributing values towards social welfare and
sustainability in environment. These business organisations are established upon different legal
structures including private, public, voluntary, etc. according to their needs and requirements.
This report assessment will be comprised of significant and essential knowledge of business
environment as business organisations. Furthermore, it will be highlighting legal structures of
different business entities and different factors that impact upon operations and activities carried
out in workplace of these business organisations (Boone, Kurtz, and Berston, 2019).
MAIN BODY
P1 Different Types of organisation
Private Company
This type of business organisation is determined as entity which has been held under
private ownership of an individual or group of people engaged in carrying out business
operations and activities. For instance, it includes various different types of business including
sole proprietorship, partnership, limited company, etc. which are regulated with private
ownership.
Dyson is among leading private companies engaged in designing and manufacturing of
appliances used in household. Products offered by respective organisation include hair dryers,
vacuum cleaners, bladeless fans, etc. The company was founded by James Dyson in the year
1991.

 Purpose: The private companies are determined at adding values to life of customers by
providing them with high quality goods and services in order to meet consumer demand.
 Aim: The aim of a business organisation with private ownership lies in earning profit out
of invested capital by establishment of a new business enterprise.
 Legal Structure: Dyson falls under the category of Private limited company which
includes limited liability of members associated with respective organisation to a
particular extent according to their investment. Furthermore, the company operates upon
large scale operations under private ownership in order to serve their huge customer base
(Kumar, and et. al., 2020).
Public Company
It is referred to a business entity which is owned by shareholders and managed by board
of directors. For instance, a public company offers shares to general public over a specific
amount against a part of ownership in the business.
Astrazeneca is one of the leading public limited company engaged in manufacturing of
pharmaceutical products. The company is headquartered in Cambridge, United Kingdom. It was
established with the merging of two predecessors including Astra AB and Zeneca Group plc.
 Purpose: Being a public limited company, the purpose of respective business
organisation is to generate profit by carrying out business operations and activities in
order to increase value of shareholders to maximum extent.
 Aim: The aim of Astrazeneca lies in establishment of a large scale business organisation
engaged in manufacturing of pharmaceutical products in order to contribute values
towards pharmaceutical biotechnology industry as well as business environment.
 Legal structure: The respective business organisation is owned by shareholders and
managed by board of directors. For instance, a public company issues shares in market in
order to raise funds that facilitates in carrying out operations and activities. Furthermore,
Primecap management, capital research & management Co, GQG Partners LLC, etc. are
some of the major shareholders of respective business organisation (Freeman, 2018).
Voluntary company
A voluntary company is determined non-profit business entity engaged in social well-
being of people in society. For instance, operations and activities in a voluntary company are
majorly oriented above contributing various values towards society.

British Heart Foundation is a UK based voluntary company which facilitates researches
related to cardiovascular diseases and other health factors by providing them with sufficient
amount of funds. For instance, respective organisation is a registered charity organisation
engaged in providing funds to representatives practising researches as well as people suffering
from heart and circulatory diseases.
 Purpose: Being a non-profit voluntary business organisation, purpose of British Heart
Foundation is to contribute values towards social well-being. The respective organisation
raises funds from people willing to donate money in order to allocate them in an efficient
manner to representatives engaged in research.
 Aim: The operations and activities carried out by respective organisation are aimed and
determined at beating cardiovascular diseases with sufficient amount of information
acquired through researches organised with use of funds provided by respective
organisation (Freeman, Parmar, and Martin, 2020).
 Legal Structure: The respective organisation has various business partners that donate
them funds in order to be allocated for carrying out researches. For instance, primary and
major of these donators include Airbus, Tesco, Coinstar, Dignity, etc.
P2 Size and scope of different business organisations
Sole Trader
Cargill is among leading business organisation engaged in food corporation in order to
serve their customers. For instance, the respective business organisation is owned by Cargill
family.
Vision/Mission:To become the most trusted and preferred brand in food and nutrition.
Size of company: Due to presence of single individual owner, sole trader companies are
generally small in size.
Products & services: Refined oils, grain and oilseeds, animal nutrition, etc.
Partnerships
Laynes Espresso is a cafe in the city of Leeds, United Kingdom, operating as a
partnership business organisation with presence of more than one individual owner.
Vision/Mission: To serve their delicious coffee and other confectioneries to maximum amount of
customers.

Size of company: The respective business operates at small scale with single business unit.
Products & services: Coffee and other confectionery items including cheese cakes, candies,
cookies, etc.
Private Company
Dyson is among leading multinational business organisation engaged in manufacturing of
home appliances for customers in order to be consumed in their daily routine and schedules.
Being a private company various factors related to respective business organisation could be
determined which are as follows:
Products & services: The product range of respective business organisations household
appliances including vacuum cleaners, hair dryers, hand dryers, lighting, etc. For instance,
products offered by Dyson are of high quality which makes them expensive in comparison with
other competitor brands in the market.
Size of company: The respective business organisation operates upon large scale operations with
a huge workforce in order to serve large customer base in different economic markets. With
global presence in various economic markets, workforce engaged in Dyson are engaged in
carrying out operations and activities in order to accomplish organisational goals and objectives.
Vision/Mission: The long term vision of respective organisation is to achieve immense heights
of success in innovation with development and catering innovative products. For instance,
primary mission of Dyson lies in initiating efforts towards solving a major problem that other
people or business organisations are unable to solve. Furthermore, respective company is
determined at transforming and converting each and every category they enter into radical and
iconic reinventions.
Public Company
With the global presence in various economic nations all around the world, Astrazeneca
is a renowned and leading pharmaceutical company. Being a public limited company, respective
business organisation has advantage of raising funds through issue of shares which facilitates in
fuelling up operations and activities (Beynon-Davies, 2019).
Products & services: The respective business organisation a large product line of pharmaceutical
products to customers in market. For instance, heavily funded research and development
department facilitates respective company in discovering insightful information as well as

developing desired medicine. Furthermore, Astrazeneca basically offers medicine or vaccine for
almost every diseases that troubles health of people in society.
Size of company: With the access to funds by issuing shares to general public, respective
organisation is able to carry out large scale operations all around the globe. In addition to that,
workplace of respective organisation has involvement of huge workforce engaged in carrying out
business operations and activities in order to serve their customers in market with suitable and
required medicines.
Vision/Mission: The long term vision of Astrazeneca is determined as transformation of overall
healthcare system. For instance, respective organisation is aimed at contributing values towards
improvising and enhancing health and well-being of people in society. Furthermore, mission of
respective business organisation lies in being determined at strategy driven through innovation in
biopharmaceutical.
Voluntary Company
British Heart Foundation is the largest UK based Voluntary company. For instance, with
the contribution of large scale business partners, respective organisation is facilitated with
opportunities to meet their desired goals and objective. Furthermore, representatives engaged in
BHF are aimed at looking out for each and every possible opportunity in order to acquire
information and knowledge that could be used in ensuring a better future of healthcare (Easterby-
Smith, and et. al., 2021).
Products & services: The respective business organisation provides funds for organising
research that are oriented above cardiovascular diseases. For instance, these allocated funds are
raised through large scale business partners and other willing donators.
Size of company: BHF runs one of the largest network of charity shops in the economic nation
of United Kingdom. Though, the company has quite a large amount of employees but also has a
lot of business partners which facilitates in donating funds to respective organisation in order to
contribute values towards social well-being.
Vision/Mission: The primary and foremost long-term vision of BHF is a world which free of
premature deaths due to heart diseases. Throughout this long journey, respective organisation is
aimed at contributing maximum efforts towards playing a significant role in essential fight
against heart diseases and eliminating the same. In addition to that, operations and activities of

respective organisation are determined at contributing values towards prevention of pre-mature
death of people due to cardiovascular diseases.
M1 How structure, size, and scope of organisation link to business objectives
A business organisation is comprised of immense amount of factors and aspects which
result in impacting upon business operations and activities. Each and every business organisation
considers suitable organisational structure according to their needs and requirements which
defines systematic manner of carrying out operations and activities. In addition to that, size of
business organisation directly impact upon achievement of objectives of business organisation as
it depends upon the target customer base to be served with final products. Furthermore, different
business organisations engaged in producing different products and services have a need to
consider suitable and appropriate organisation structure and size of organisation.
P3 Organisational structure and relationship between organisational functions
There are various different types of organisational structure implemented in business
organisations including Flat, Functional, and Divisional structure. For instance, all these
organisational structure are comprised of different systems of working, hierarchy, reporting
relationship in a workplace.
 Flat organisation structure: It includes few to no levels of hierarchy in order to promote
open communication in a workplace.
 Divisional organisation structure: It includes classifying the activities of a business
organisation under different categories on the basis of particular product or market and
service group.
 functional Organisation structure: It includes grouping up of activities and
responsibilities on the basis of specific skills and abilities of individual employees.
The respective business organisation i.e. Dyson has considered Flat organisational
structure which includes common workplace for entire workforce engaged in respective
organisation. For instance, purpose and aim behind consideration of this particular organisational
structure lies in minimising level of hierarchy as well as enhancing coordination and
collaboration of employees in workplace. Moreover, the determined organisational structure
includes minimum to no level of hierarchy among middle management, executives and other

lower level employees. Furthermore, it facilitates in regulating open communication in
workplace which incurs less time in exchange of information as well as facilitates in
enhancement of relationship among workforce (Anshari, and Sumardi, 2020).
Referring to above mentioned information, there are various functional departments in a
business organisation which have interconnectedness with each other. In addition to that,
activities and practices carried out in an functional department result in influencing and affecting
activities of another functional department.
Production and Marketing
Production department is comprised of operations and activities taken into consideration
in converting input into output. For instance, it includes manufacturing or operational unit of
respective business organisation which is responsible for development of final product to be
offered in consumer market. On the other hand, Marketing function includes activities and
practices which facilitates in promotion of product among customers in society (Aldous, 2018).
Products manufactured or produced by respective organisation are influenced by
information acquired through marketing practices including consumer demand and market
trends. Moreover, marketing practices facilitates in access to necessary information that
influence strategic planning of respective business organisation. In addition to that, marketing
activities and practices are further influenced with production or manufacturing of specific
product with consideration of particular strategies for promotion and advertisement. Each and
every product or service has a different idea or purpose behind development which could be used
in marketing activities in order to attract customers looking out for the same. Furthermore, both
these functional departments of Dyson are highly interconnected with each other which creates a
necessity for employees engaged in these departments to work with upright coordination and
collaboration (Hamilton and Webster, 2018). Flat organisation structure of Dyson involves
common workplace for entire workforce which facilitates these employees in maintaining
effective coordination in carrying out business operations and marketing practices.
Marketing and Finance
Finance department of respective business is comprised of activities and practices which
includes planning and management of company's finances. For instance, it includes various
financial aspects including payroll management, credit management, accounting, etc. which
facilitates in determining financial position of the company. On the other hand, marketing

function includes promotion of products and services offered by respective organisation in order
to increase overall sales (Khajeheian, Friedrichsen, and Mödinger, 2018).
The primary and foremost aspect of interconnectedness of these functional department is
determined as strategic planning for appropriate budget for marketing practices as well as
arrangement of funds according to information acquired through marketing activities. For
instance, activities carried out in financial function determines a specific and particular budget
for marketing practices according to existing financial position and stability of respective
organisation. In addition to that, market information acquired through marketing practices and
activities facilitates in acknowledging upcoming opportunities as well as threats which allows
Dyson to arrange and allocate funds accordingly (Cyphert, and et. al., 2019). Furthermore, open
communication followed in workplace of respective company due to consideration of Flat
organisational structure, facilitates in faster exchange of information and strategies. This
determined positive aspect further contribute additional values towards accomplishment of
upcoming opportunities as well as being prepared for upcoming threats to business operations
and activities.
HR and Finance
The human resource is determined as functional department which facilitates in
fulfilment of manpower needs of respective business organisation. For instance, it includes
recruitment and selection of suitable candidates as well as developing a suitable and positive
working environment. On the other hand, Finance department is comprised of activities and
practices involved in maintaining finances of respective business organisation (Betti, and Sarens,
2020).
In order to carry out finance function, there is a need for sufficient amount of workforce.
For instance, recruitment and selection practices in HR facilitates in selection of eligible and
appropriate individuals in order to engage them in workplace of respective organisation.
Moreover, Finance function undertakes activities and practices in developing a specific financial
budget which according to financial stability of respective organisation which determines
spending power of Dyson in organising training and development programs for employees. In
addition to that, common workplace and minimum level of hierarchy followed in respective
business organisation ensures effective coordination among workforce engaged in these
functional departments (Faber, and et. al., 2019).

M2 Interrelationships between organisational functions and impact upon organisation structure
Functional departments in a business organisation have interdependences and link with
each other in order to ensure smooth functioning of respective business organisation. For
instance, primary and major impact of interrelationship of these functional department lies in
coordination and collaboration of these departments in achievement of organisational goals and
objectives. In addition to that, lack of interrelation among these functional departments result in
barriers to achievement of organisational goals and objectives. Furthermore, it facilitates in
completion of business operations in an effective and efficient manner. Therefore, there is a
necessity for all the functional departments in a business organisation to carry out operations and
activities with effective coordination and collaboration (Skilton, Wiseman, and Glick, 2018).
D1 Critical analysis of complexities of different organisational structures
There are various complexities faced by different organisational structures according to their
needs and requirements. For instance, it includes raising funds, customer loyalty, market
uncertainty, risk management, etc. In addition to that, the larger the size of business organisation
the more challenges and complexities it faces in carrying out operations and activities. A
business organisation always looks out for upcoming business opportunity in order to expand
business unit according to their organisational structure as well as size. Though, a public limited
company have access to funds from general public by issuing them shares but on the same time it
creates several complexities with addition of stakeholders of the particular business organisation
(MHarding, 2020).

P4. The positive and negative impact of the macro environment on the business operations 650
PESTLE Analysis is said to be the tool which is used to analyse the macro factors and
environment of the company (Contractor, and et. al., 2020). With the help of this the companies
are able to analyse and understand the external environment in which the company perform its
function.
PESTLE Analysis of AstraZeneca
Factors Explanation
Political Factors Political factors play a crucial role in the market as the chosen
company that is AstraZeneca which is operating in the
healthcare sector of the industry. There are various political
factors such as the company got the tax benefit that has allowed
the company to have high profits. Another, the company has to
be prepare for all the changes in the policies with the
government as it is a important sector of the society (Farrukh
and et.al., 2020).
Economic Factors Economic Factors comprises of various factors that is interest
rate, inflation rate, taxation rate and many others. It is also
essential for AstraZeneca to consider the economic factors that
is the lifestyle cycle because the stage of the mature industry in
the cycle can be challenging situation for the company. Also,
The economic development of a specific country directly affects
the performance of the company (Brown and Brown, 2019).
Social Factors Social factors are comprises of various factors such as
demographics, culture, traditions and many others. In reference
to the company, the customers of the UK are giving attention
towards the experiential products instead of traditional. Also,
UK is a growing country that is why company can also expand
its segments here.
Technological Factors Under the healthcare industry, technology is changing and there