Business Environment Report: Business Environment Analysis P1 & P2

This report provides an overview of the business environment, focusing on different types of organizations and their purposes. It begins with an introduction to the business environment, defining its key elements and influence on business operations. The report then explores various organizational structures, including for-profit, non-profit, and non-governmental organizations, examining their core objectives and operational differences. It further delves into specific legal structures such as public limited companies, private limited companies, and voluntary organizations, highlighting their characteristics and regulatory frameworks. The analysis extends to the size and scope of different organizations, comparing public, private, and voluntary sectors, and illustrating their impact on the economy and society with examples like Argos and Save the Children Fund. The report concludes by emphasizing the dynamic nature of the business environment and the importance of understanding it for effective decision-making and achieving business objectives. References to relevant academic sources are also included.

Business
Environment
P1 AND P2

Table of Content
• Introduction
• Various types of organisation with their purpose
• Size and scope of range of various organisations
• Conclusion
• References

Introduction
 Business environment can be defined as the sum total of
all internal and external factors – all employees, partners,
institutions, government and other forces that significantly
influences the overall productivity, performance and
growth of the enterprise.
 It is the place where all the operations and activities
related to a firm are conducted effectively and efficiently
so as to attain goals and objectives of a firm.

Various types of organisation with their
purpose
 Business refers to converting the skills and limited
available resources into output as per the needs and
requirements of the customers so as to accomplish its pre
defined objectives.
 The motive or aim of most of the firms is to earn profits
by catering the needs of its customers by providing them
with goods and services of their choice.

Continue..
Basis
of
Compar
ison
For Profit NPO NGO
Meanin
g These firms
operate with the
main objective of
earning higher
profits by
providing goods
and services to
the customer to
satisfy their needs
and wants. The
main goal of such
companies is to
any increase their
revenue and
market share.
NPO's are the
firms which works
with the main
objective of
selling goods and
services to cater
the needs of
different sections
of the society for
which they are
established to
provide then with
benefits.
These are the
non
government
regulated
bodies that are
formed by the
voluntary
association of
individuals
who are
working
together to
fulfil or
achieve some
common
purpose.

Public limited company
This is a type of joint stock company which is run by Board of
Directors on behalf of its shareholders. When a specific issues
arise then all shareholder vote to solve it. Major difference
between a plc and a private organization is that public limited
company can sell its on the stock exchange.

Legal Structure – Public Limited Firms
 Central Government
 State Government
 Local Government

Private limited company
These types of companies have a separate legal entity from its
owners. Shareholders in this has a limited liability for the
company and this type of company is run by Board of
Directors. Legal documents of this consists memorandum and
articles of association which cover the information such as
main objectives of business and location of its headquarter.

Legal Structure – Private Limited Firms
 Sole trader
 Partnership
 Franchising

Legal structure: Voluntary firms
Unincorporated associations: In this, individuals with a common
interest come together to carry out work to provide benefit to
public. Management of these is done by a constitution and it
has unlimited liability.
Incorporated organizations: This type of organization has a
separate legal entity from its trustees. Directors are the agents
of organization but not remain liable for the debts.

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Three major sectors:
 Public
 Private
 Voluntary

Legal structure of public organization
M&S: It is the structure which govern the different business
activities of organization. The structure which is followed by
M&S from their side to comply all the requirements is named
as Consumer contract (information, cancellation and
Additional charges ) Regulations 2013.

Legal structure of private organization
Sainsbury: It is the structure governed the business activities of
organization. The structure which is followed from the side of
Sainsbury is Corporations Act 2001 (Cwlth).

Size and Scope of various types of
organisations
 As business deals in a competitive environment it is of vital
importance for the business to perform each of its functions
effectively and efficiently so that it will enable the business
to achieve all it so objectives by getting maximum returns
and generating higher profits which will ultimately lead to
increase in the growth and productivity of the firm.

Private limited company
Private Sector Companies – Private sector companies are
considered very significant for the economy as they act as the
employment provider to the people who does have job and
regular income. Like in Argos, they are retail company which
was founded in 1972 in UK

Public limited company
Public Sector companies – Salisbury is a public limited
company having various joint ventures in the world. The size
of public companies are as follows :-
Minimum Members- 7
Maximum members- Unlimited

Continue...
Voluntary Sector – In voluntary sector, funding is generated
through investors and sponsors. Save the Children Fund is is a
voluntary company which is registered in UK and more than
29 national other save the children organizations who are
working under this.

Scope of Various Organization
Scope of Private company
 In UK private organization constitutes around 60% of total
Economy providing employment to more than 15.6 million people.
 Argos being one of the leading retail company provides goods and
service customized as per needs and requirements of its customers
at affordable prices.
 It deals in a large variety of products comprising groceries and
general merchandises.

CONTD....
Scope of Public Organization
These organization strives to provide goods and services that
counts in basic necessities of life at affordable prices to its
customers. In UK , public sector accounts 17% of total
employment i.e. More than 5.4million people that defines its
scope.

CONTD....
Scope of Voluntary Organization
 In UK there are more than 162,965 voluntary
organization that are providing various kinds of aid and
charity services for the welfare of the people.
 Save the Children Fund is associated with undertaking
activities like social services, education, development,
health, environment and many more that widen up
scope of this sector.

CONTD....
Large business: Department of these organization perform
various functions such as selling and promotion of more than
one product. These companies expand their product range in
order to bring efficiency in business activities and to generate
more profits.

CONTD....
Small business: Sole trader, is known as business which is
operate and manage by a single individual. Feature of this type
of businesses is that it offer special services based on the
requirements of clients. It reach quickly to the needs and
requirements of customers. These type of businesses can better
satisfy the needs of local people.

Conclusion
It get concluded from the project that business environment
is dynamic in nature which need to assess and understand in
better frame. By appropriate and suitable understanding
chances of working and gaining better results and decisions
become possible.

References
 Cascio, W., 2018. Managing human resources. McGraw-Hill
Education.
 Deasy, S. and et. Al, 2016. Controlling use of a business
environment on a mobile device. U.S. Patent 9,247,042.

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