HND Business: Examining the Business Environment- Size, Scope, Types

This report provides an overview of the business environment, focusing on different types of organizations, including public, private, and voluntary sectors. It discusses the purpose and characteristics of each sector, providing examples such as British Airways (public), Arcadia Group (private), and TEARFUND (voluntary). The report also examines the size and scope of these organizations, highlighting their roles in the UK's economic development. It references relevant academic sources and concludes with a thank you note. Desklib provides this and many other solved assignments to help students in their studies.

BUSINESS AND BUSINESS
ENVIRONMENT
TASK 1

Content
 Introduction
 Types and purpose of business organisation
 Size and scope of business organisation
 References

INTRODUCTION
Business environment is the amalgamation of internal
and external factors which will put a huge impact on
growth and success of business organisation. Hotel
Hilton is the chosen organisation in this present
report. There will be discussion on public, private and
voluntary sectors.

P1 Types and purpose of business organisation
There are three types of
business organisation,
such are as-
 Public sector
 Private sector
 Voluntary sector

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Public sector- Companies that come under public sector are owned and
controlled by the government of country. This sector is having an
essential role in the growth and development of nation’s economic
condition.
For example – British Airways PLC is the example of public sectors.
It is the largest airline of UK. The overall revenue of the company is
£11,443 million (approximately). British airways is situated in 183
countries over the world.

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Private sector
The sector is owned and run by private individuals or a group of
persons. They are not in under control of the government.
For instance – Arcadia group comes under private sector which is a
British multinational retailing company. It is a prime dealer of shoes,
clothing and accessories. Arcadia group Ltd. was found in the year
1903. Taveta investments is the owner of this group that has more
than 2500 outlets in the UK.

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Voluntary sector
These sectors are also known as third party or non-profitable business
organisation. Such type of organisation are developed and regulated with
an aim of social welfare and services. For instance - TEARFUND comes
under voluntary sector whose total annual voluntary income is
63,041,000. This works in over 50 countries for the social services and
society’s welfare. It is a Christian charity whose main aim is to work with
local churches in order to unlock the desires target customers.

Growth of international business environment
International business environment helps in acheieving
forerign exchange that can be used for strategic imports.
Along with it is also useful in mutual growth and
development of countries; as in IBE different countries
are rely upon each other. International business necessities
are liable for proper development of infrastrcture.

P2 Size and scope of business organisation
Public sector business entities have their own separate
identities. In UK when a new PLC is developed is needs
to register with an executive agency and companies
house.
Example- British Airways is one of the public sector
organisation. It provides its flights to 570 destinations in
133 territories.

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Private sector business organisation - In UK, there are many
private multinational companies are establishing rapidly. They
have an important role in growth and success of company.
Types of private entities are - Sole traders, partnerships,
companies, franchises.
Example- Arcadia Group limited is an example of private sector
business organisation; it mostly deals in clothing products.

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Voluntary sector business organisation -
There are many voluntary sectors are regulated in UK which
are responsible for healthy economical development of
the country. It involves- household associations, credit
unions, trustees, local communities etc.

References
Cronan, T. P. and et. al., 2011. Decision making in an integrated
business process context: Learning using an ERP simulation
game. Decision Sciences Journal of Innovative Education.
9(2). pp.227-234.
Dahan, N. M. and et.al., 2010. Corporate-NGO collaboration: Co-
creating new business models for developing markets. Long
range planning. 43(2). pp.326-342.