HND Business Environment - Task 1: Organization Types and Structures

This report provides an overview of the business environment, exploring the different types of organizations, their purposes, sizes, and scopes. It categorizes organizations into public, private, and voluntary sectors, highlighting their distinct characteristics and operational models. The report uses Argos, a retail company, as a case study to illustrate these concepts, examining its operations within the private sector and its engagement in social responsibility initiatives. It also discusses the significance of the business environment's components, such as customers, suppliers, technology, and government regulations, in influencing organizational development. The conclusion emphasizes the importance of strategic planning and adherence to standard operating procedures for achieving organizational goals. The report is based on research from various academic sources.

Business Environment
TASK 1
(P1 & P2)

Table of content
 Introduction
 Different types and purpose of organisation
 Size and scope of different types of organisation
 Conclusion
 References

Introduction
 Business environment is a combination of external and internal
factors which impact negative and positive effects in business
operation of organisation.
 Argos is a retail company which was founded in 1972 and is
situated in United Kingdom and Ireland.
 There are different components which are included in business
environment and those are: clients and suppliers, its competition
and owners, improvements in technology, laws and government
activities and market, social and economic trends.

Different types and purpose of organisation
 Business environment include various components such as
customers, resources, suppliers, distributors, demography,
substitutes, technology and government that help in overall
development of business.
 Argos have been existing in market since past few decades and
company has shown massive growth in retail sector.
 By dealing through both channels, physical stores and online
stores, company has created almost more than billion customers.

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Main objective of these sectors is to achieve business goal while
operating in their respective commercial environment. Purpose of
these organisations along with their structures is mentioned below:
Public sector: These companies are owned and controlled by
government bodies and have full authority to manage their legal and
legitimate procedures.
Private sector: These type of companies are owned and controlled by
private agencies, firms or institutions.
Voluntary sector: It is a non-profit sector which is again owned by
government bodies which operate by providing social services to
people.

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 Above mentioned types of organisation clearly state their purpose and
mode of operation which is an essential part for business environment.
 Argos have been dealing in private sector and has shown impressive
success and growth.
 Apart from profit making, company works for betterment of society
by organising various campaigns and awareness programmes.
 These activities help company to achieve its objectives in desired time
frame and also increases their preference among customers and
buyers.

Size and scope of different types of organisation
 Companies are divided into three categories; private, public and
voluntary.
 Their structure, size and scope are organised and connected with
the goal and objective of business.
 Size and scope vary from company to company depending upon
factors such as mode of operation, objectives, purpose, etc.

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Public: As discussed before, these organisations are operated via
government bodies and provide services to people in need. This
sector is operated with the help of rule, regulations and legislations
designed by government of respective country.
Scope: With increase in awareness level among people of UK, they
have acquired the knowledge of various laws and rights that are
provided by government.

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Private: This sector is established by private owners such as
individual or partners. Main target for establishing a private unit to
earn profit form it.
Scope: Argos is a well known brand for retail services and have
around 900 stores across country with a customer base of one
billion.

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Voluntary: These companies are established by trustees or funding
bodies. They generally provide social care to people of UK. Argos
have been serving the country with charitable deeds such as
awareness programs for incurable diseases.
Scope: There are approximately 162,965 voluntary organisations in UK
and about 50% have annual income of £10,000. This signifies that
voluntary sectors are growing fast and prevailing success in their
segments.