Business Environment: Types, Functions, and Analysis Report

This report provides a comprehensive analysis of the business environment, focusing on the characteristics, purposes, and operations of public, private, and voluntary organizations. It uses examples like Coca-Cola, Department of Works & Pensions, and World Vision International to illustrate key concepts. The report covers the size and scope of different organizational types, the interrelation of organizational functions with objectives and structure, and the positive and negative influences of the macro environment. Furthermore, it includes an internal and external analysis to identify strengths, weaknesses, and their connections with external factors, such as a SWOT analysis. The report concludes with a summary of the findings and references.

BUSINESS
AND
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Different types & purposes of business organisations...........................................................1
P2 Size and scope of different types of organisations.................................................................3
TASK 2 ...........................................................................................................................................6
P3 Relation among different organisational functions and their link with objectives &
structure.......................................................................................................................................6
TASK 3 ...........................................................................................................................................8
P4 Positive and negative influence of macro environment on business operations....................8
TASK 4 ...........................................................................................................................................8
P5 Internal and external analysis for identifying strengths & weaknesses.................................8
P6 Interrelationship of strengths and weaknesses with external macro factors.........................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
Business environment belongs to different internal and external factors that directly as
well as indirectly impact the operations or activities of enterprise. In other words, business and
environment both are different words and have not similar meaning. In this business consists as
a human activities which includes production, extraction, sales or purchase of products that are
performed with motive to maximising profit (Business Environment, 2018). While environment
consists as an effective part of surroundings. As per the both concepts, business environment is
identify as a set of conditions including institutional, legal, social, economical and political
factor, all these are uncontrollable as well as highly influence the functions and activities of the
enterprise. This report is based on different three types of organisation namely private, public
and voluntary. Example of these business are Coca-Cola, Department of Works & Pensions and
World Vision International. The current report includes scope, types, purpose and size of
organisation. Along with this, different functions of organisation which are interrelated with the
structure and objectives of company. Further negative and positive effects of macro environment,
SWOT Analysis and their connection with them also explained in this project which effects on
the decision making.
TASK 1
P1 Different types & purposes of business organisations
Each and every enterprise may have various goals and purposes that they require to
accomplish while establishing the business operations and activities in marketplace (Avramenko,
2012). However, some enterprise mainly run their functions in order to earn maximum number
of capital whilst some other organisations primarily operates to meet the needs and wants of their
clients. Thus, the intention of each entire business are not exactly same. There are various
enterprise present in the marketplace that is public, private as well as voluntary sector
organisation. Purpose of all these enterprise are determined as below:
Public organisation: These type of business can advertise to serve its share to public via
a prospectus. They required minimum 7 members in the operations and activities of such
organisation. Stock of public limited company can be acquired by holders and anyone are only
constricted to potentially lose. Purpose of this business is to work for the welfare and
1

development of society. In this selected public organisation is department of work & pensions
which are explain as below:
Department of Works & Pensions: It is the largest department of government in UK, and
is liable for welfare and pension policy. It was formed in 8 June 2001 by Esther McVey at
United Kingdom. Main purpose of such organisation is to work for the development and
progress of society.
Purpose: They are responsible for pensions, welfare and child maintenance policy.
Another motive of this enterprise is to encouraging people in order to work and developing work
pay and rendering value for capital and decreasing levels of error and fraud (Bovee, Thill and
Raina, 2016).
Legal structure of public organisation
 Central government: It is a part of state and central government that make different
rules and regulations. They are responsible for controlling all activities and operations of
organisation.
 State government: In this business organisation, state government play vital role for
developing business operations and functions in an effective and efficient manner. Main
purpose of these government is to operates business activities successfully. Local government: In the public sector, local government has various roles to regulate
all activities in an effective way.
Private Organisation: It is another type of organisation which are owned by private individuals.
There are some examples of such enterprise including sole traders, partnership, franchise and
public and private companies. Purpose of private organisation are growing their business
operations, making profit, maximising profit and increasing market share (Cai and Yang, 2014).
Coca-Cola: It is a carbonated soft drink company which cover entire area of United
State. It was introduced in 8 May 1886 by John Pemberton. They produce different variety in its
beverages across the world.
Purpose: Company has different purpose which are explained as below:
 To understand the core values, mission and vision.
 To know the external and internal atmospheres in which Coca-Cola run or operates.
 To know the future prospects of various products.
 To recognise and characterize the various growth strategies used by company.
2

Legal structure of private company
 Partnership: Partnership is consists as an organisation which is establish by two or more
peoples with common purpose of earning maximum amount of sales. In this entire
partners are equally accountable or responsible for the ownership of business entity. .
 Sole proprietorship: It is another entity which are start and establish by a single person.
Entire precise regarding business operations and functions are keep by sole proprietor.
They are accountable and liable for each and every liabilities. Limited companies: It is a type of the enterprise on which large number of shareholders
have their own power as well as accountable for operations and activities of company.
Voluntary Organisation: This type of association is an individual group who voluntarily come
in an agreement to way an organisation of body to attain a purpose (Chavis, Klapper and Love,
2011). They are working or performing in this zone for social economic growth of rural people
as well as for dissemination and promotions of sports, culture and art.
World Vision International: It is a Christian humanitarian advocacy, development and
aid organisation. It favour to present itself as interdenominational as well as also employs
workforce from non-Christian faiths. This business was founded in 1950 by Rev. Bob Pierce in
different countries.
Purpose: After a consultation time period, the Coalition identified three foremost gaps in order
to fill to create the biggest effort via the global good. These gaps are determined as below:
 Low program counselling for integration
 A lack of emphases on combination in the first 1,000 days
 A lack of integration or combination metrics
P2 Size and scope of different types of organisations
There are various factors upon which an enterprises are distinguish from each other
consist of objectives, size, turnover, scope, employees and many other (Commander and Svejnar,
2011). The business entity is divided into mainly three kinds which are called medium, small and
large. All these are perform their activities and functions by having some objectives. These
business are explained as below:
Micro: It is a type of business which has less than 9 employees and €2 million turnover.
For achievement of such activities company require sufficient amount of capital to meet out their
requirements related to working capital. This type of enterprise run by two or more individuals
3

and any kind of family enterprise. Main objective of this firm is regarding survival in
marketplace via accomplishment of competencies in their business operations.
Small and medium: In this different business are includes such as partnership,
proprietorship, public and private companies. Such business require to have the workforce
between 50 to 250. main motive of such enterprise is to earn maximum amount of sales via
satisfaction of the customers basic needs and wants (Cuervo‐Cazurra, 2011). In this government
play vital role about advertising activities and functions of company. Such kind of advantages
are called as donation, preferential tax policies, availability of funding sources and subsidies etc.
Large: Business operation of this enterprise not only having in one country but also
various nations. They accomplish their business functions and activities at global level for
maximising customer base over their competitors. In this business more than 250 employees are
working with aim to maximise sales and revenues of the organisation within predetermined
period of time. In this government provide different regulations and legislation which is highly
needed to adhere while executing all functions and activities. Such functions not only supports in
growth of economy but also assist in welfare of society (Gebauer Paiola and Edvardsson, 2010).
Main motive of large organisation is satisfy basic needs and wants of the stakeholders via
continuous enlargement of business operations.
Size and scope of Coca-cola, Department of Works & Pensions and World Vision
International are determined as below:
Size and scope of Coca-Cola:
Size: Coca-Cola is a carbonated soft drink organisation which deals across the globe.
This company was founded by the John Pemberton in May8, 1886 in different countries. In the
business, there are large number of employees are work with the aim to maximise their sales and
profit in an effective manner.
Scope: Scope of the Coca-cola is wide because of its quality products and services.
Business operations of the company is also large that define its strong position at international
marketplace. Business provides different products including Caffeine-Free Coca-Cola,Coca-Cola
Zero Sugar, Coca-Cola Cherry, Diet Coke Caffeine-Free, Coca-Cola Vanilla, and many special
versions with lime, lemon and coffee.
Vision: “The leader in the beverages industry” is vision statement of the Coca-Cola.
4

Mission: Mirror the richly divers markets we serve, capitalizing on our inclusive culture
to develop, attract, retain and engage a global talent mix to fuel our competitive benefits.
Business objectives: Main objectives of Coca-Cola is to maximise their market share and
attract large number of customers.
Stakeholders: In Coca-cola, there are large number of stakeholders are participates in the
growth and development of company such as employees, customers, government, suppliers and
many other.
Size and scope of Department of Works & Pensions:
Size: Department of Works & Pensions is the largest government department located in
UK. They are responsible and liable for pension policy and welfare. Such firm was formed by
Esther McVey in 2001 at United Kingdom. In the business approx 84718 employees are perform
all activities and functions of company in accurate manner (Halbert and Ingulli, 2011).
Scope: Scope of such organisation is also large which help them to keep their strong
position and image in marketplace. They provide different services such as pension credit, basic
state pension, and many other services to the needy people.
Vision: Guimaras as the agri-eco-tourism capital of the area with self-reliant, resilient,
empowered and healthy families in a advanced economy and safe environs anchored on the value
of sustainable development.
Mission: “Developed quality of life of Guimarasnons through participatory and
responsive governance”.
Business objectives: Main business objective of the company is to work for the
development and welfare of society effectively.
Stakeholders: In this company various stakeholders are contribute their full efforts in the
growth and progress of their business operations internationally. There are some stakeholders
such as workers, governments and so on.
Size and scope of World Vision International:
Size: World Vision International is a Christian humanitarian development, aid and
advocacy business organisations. It was founded by Robert Pierce in 1950 as a service enterprise
to meet the emergency requirements of missionaries (Hamilton and Webster, 2015). Number of
employees in the company are 22500, all these are play vital and effective role for the growth
and development of company in limited time period.
5

Scope: Scope of World Vision International is large which is identify business is well-
established across the world.
Vision: “A community involved in positive modification and transformed by service”.
Mission: “We advance volunteerism and nonprofits by encouraging innovation,
strengthening leadership and empowering individuals in our community”.
Business objectives: Main objective and motive of this organisation is to provide better
services with aim to develop growth and betterment of community.
Stakeholders: There are different stakeholders are work such as Volunteers, service user,
governments and many other. Motive of all stakeholder is to work for the welfare and progress
of business.
TASK 2
P3 Relation among different organisational functions and their link with objectives & structure
In Coca-Cola, there are large number of the departments are work with aim to maximise
sales and profitability of company within predetermined period of time. In this, production,
human resource, sales, research and development and financial development play vital role for
the growth and success of organisation (Hilton and Platt, 2013). All these departments are
interrelated with structure and objectives of organisation. These are determined as below:
Marketing: It is one of the main department which play vital and effective role in
promoting goods and services of Coca-cola in proper manner. Also perform significant functions
regarding market research to find out the current trends, actual demand, challengers, quality of
products and services, strategies select by them and so on. All these type of information or data
has direct relation with operational department of Coca-Cola which has motive regarding
organising daily operations.
Operation department: This department of Coca-cola renders different functions
regarding brining of effective coordination among entire activities which execute on daily as
well as important to execute business effectively. In this respect, operational manager of the
company performs various activities and functions including planning, monitoring, controlling
and organising. This type of activities give supports to human resource department of company
in betterment of their functions regarding keeping the higher level of profitability and
performance via appraisal on daily basis (Klapper, Lewin and Delgado, 2011).
6

Human resource department: It is one of the main department in the Coca-Cola which
execute all functions about planning of workforce as per the current requirement to
accomplishing their functions and operations in an effective and efficient manner. HR
department of food and beverages industry has different functions including performance
appraisal, determination of salary, designing of development and training, appointment of
workers and many other (Osterwalder and Pigneur, 2010). These functions are connected to
entire departments of the coca-cola such as finance, marketing and operation.
Finance department: It is another important department of the business entity which has
different functions about arranging various source of funding. This will consist the
implementation of budget for all departments to render accurate guidance is to make their
effective plan according to given budget otherwise it outputs in maximise of cost which fall
down profitability and productivity of company. This department is interrelated with the research
and development team because in this researcher analysis different sources of fund.
Research and development: It is another main department which execute the functions
and activities about identification of service and product quality through application of different
approaches of quality control. They support operational and marketing department of Coca-Cola
in execution of their activities with expertise (Pikka, Iskanius and Page, 2011).
Organisational Structure: It identifies the business activities in such way they are performed or
worked because their proper executions which is highly relay on the prevailing structure of
business. This will support to know regarding that who has power to monitor and direct the
workers and division. The organisation structure of Coca-Cola is determined as below:
Post bureaucratic structure: Under this structure, decision are seized as per the
consensus and dialogue instead of command and power. This type of structure mainly related
with the finance and operational functions of company. Thus it support the company to attain
their goals and objectives.
Bureaucratic structure: These type of structure is follow when the company has
maximum way of formality or observances while performing all activities and functions of their
own.
Functional levels: It will consists regarding setting of business structure on the basis of
functional level which are executed in enterprise. In the coca-cola, company structure is mainly
related with the marketing, human resource, finance and many other departments.
7

TASK 3
P4 Positive and negative influence of macro environment on business operations
There are various factors that can affect the business operations. Thus company can
create various plans and policies so that they can easily beat the competitors (Avramenko,
2012). Positive and negative factors that can affect the activities and operations of Coco-Cola
are:
Political factors: There are various rules and regulations that company have to follow.
Positive and negative impact are :
Positive impact: If there are less taxes which are applied to company then firm can increase the
profits.
Negative factors: Company has to follow all rules and there is a time when govt had banned
the drink. Thus it leads to reduction in profits and market share of firm.
Economic factors: It includes growth rate and other factors which can affect Coco-cola.
They are:
Positive impact: There is a positive impact if there is a situation that there is a recession. Thus
the company tries to sell products at lower costs which can directly increase the satisfaction level
of all people.
Negative: There is financial crises that directly affect operations of company. It results in
reduction of profits of company.
Social factors: These are factors that can affect operations through demand and
requirement of all people. Positive and negative factors are:
Positive : Coco-Cola has created many healthy drinks which are according to demand and
requirements of all people. It leads to increase in profits of company (Cai and Yang, 2014).
Negative: There are various situations in which company cannot satisfy needs of all people .
Thus it results in decreasing of profits.
Technological: It can affect activities and tasks of the company. Positive and negative
influence are:
Positive: Advanced techniques are used in packaging and producing drink which can increase
the profits of company.
Negative: Due to competitive techniques and tools firm cannot beat the rivals.
8

Legal factor: They represents le4gislations formulated by the government of a particular
nation to which a business is liable to be adhere by its activities. Coca Cola being a worlds
leading brand having its operations across many nations is subject to rules and regulations
followed by all those nations.
Positive impact: Company to comply with Food Safety Act , has opened various
recycling plants where its plastic bottles and water are been recycled and reused.
Negative impact: In 1999, Coca Cola was sued for its racial discrimination allegations
because of corporate hierarchy followed by company where black employees were given low
pay scale in comparison to others employees (Chavis, Klapper and Love, 2011). This lead to
Coca Cola being banned to sell its products in many countries.
Environmental Factor – This includes all those factors that are determined by
surrounding environment. For Coco cola it is very essential aspect as this includes weather,
geographical location, global changes in climate, environmental offsets etc.
Positive Impact -
Positive impact of Coco cola is it reaches to high performance in addressing environmental
concern as it expand its corporate social responsibilities. Another positive impact is it emphasis
on sustainable business strategies.
Negative Impact-
Change in climate has negative impact on Coco cola as it affects the supply chain of the
company. When company not consider environmental factors than they loose their market
shares.
TASK 4
P5 Internal and external analysis for identifying strengths & weaknesses
Internal and external analysis is identify SWOT of the company which present its
weakness, strengths, threats and opportunities in an effective manner. Coca Cola and Pepsico
both are use such tool with aim to overcome their all weakness as well as expand their business
operations at global level (Prajogo, 2016). SWOT Analysis of the Pepsico and Coca-cola are
determined as below:
SWOT Analysis Coca-Cola Pepsico
Strengths  Coca-Cola is the number one  Popular subsidiary brands like
9

and famous beverages brand
in ways of sales and reach.
 Financial conditions is more
strong over their competitors.
Frito Lay, Pepsi, Gatorade,
Tropicana, Yum Quaker,!
Brands, etc.
 Excellent advertising and
branding with international
celebrity as brand ambassadors
Weakness  Better and effective
competitions in the aerated
drinks division from Pepsico
that means constant struggle
over business market share.
 The presence of pesticides
traces in the beverages of cole
that have caused harm to the
goodwill and brand image
(Reed and et. al., 2013).
 Strong rivalry in the aerated
drinks section from Coca Cola
substance high brand shifting.
 Suit against products that have
been formed out of quotient,
thereby affecting goodwill and
brand image.
Threats  Instability, economic
slowdown and inflation.
 Health awareness amongst
people deflective aerated
drinks that can effects on
coca-cola in adverse manner.
 Strong rivalry from another
brands in each part of its
operation.
 Compliance with various
government regulations as well
as norms in various countries.
Opportunities  Diversify their product
portfolio by coming into
snacks sector to compete with
their challengers such as
Pepsico.
 To enlarge the Yum! Brands or
products eatery in tapped
nation and location like tier 2
cities.
 Maximise penetration into
processing countries and
capture large amount of their
market
10