Business and Business Environment Report: Organizational Analysis

This report delves into the intricacies of the business environment, exploring different organizational types—public, private, and voluntary—and their respective roles and scopes. It examines how organizational functions contribute to achieving targets, with a focus on finance, human resources, and marketing. The report analyzes the positive and negative impacts of the macro environment (political, economic, social, technological, legal, and environmental) on business operations, using Virgin Money as a case study. It also explores internal and external analysis techniques, including SWOT analysis, to identify strengths, weaknesses, opportunities, and threats. The interrelation between internal factors and macro factors is discussed, providing insights into strategic planning and business opportunities to overcome weaknesses and threats. The report also provides an analysis of the external factors using PESTLE analysis for Virgin Money.

BUSINESS AND BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................................3
P.1 different types of organization.........................................................................................................3
P2. Size and scope of different types of organization.............................................................................4
P3 role organization functions helps to achieve the target ...................................................................5
P4 Positive or negative factors of macro environment upon business operation..................................6
P5 Internal and external analysis of organization to identify the strength and weaknesses..................7
P6 strength and weaknesses interrelate with macro factors..................................................................8
CONCLUSION...............................................................................................................................................8
REFERENCE................................................................................................................................................10

INTRODUCTION
Business organization is affect from business environment there are many factors which
affects company growth directly or indirectly weather it is private sector public sector. In this
project includes the topic of business or business environment. Its role and scope, PESTLE
analysis of macro environment will be discussed. Strength and weaknesses interrelate with
macro factors also will be discussed and its effects on the virgin money which is a UK based
company provides financial services or credit cards facility along with some complementary
benefits.
P.1 different types of organization
There are different types of organization is present. This organization are divided into
three sectors public, private, or voluntary organization. These all sectors are worked differently.
Public sector is controlled under the government. ( Ebert, Griffin, Starke, and Dracopoulos, 2014) The
main objective of government is to provide support to public people pay taxes this tax
government use in public sector. The main goal of public sector is to provide public services and
increase the development of community. Private sector is run by private individuals for the profit
maximization. Organization helps to share the risk and works between the individuals which
helps to accomplish the overall objective. It helps to achieve the opportunities in terms of
organization growth. Voluntarily organization is run for the main objective is to provide services
to disabled person they arrange funds from the big business mans or take hep from government.
Three types of organization explain below:
Public sector: Public organization are this organization usually work for public interest operated
by government they provide many goods and services for their community. They generate their
money through money in term of taxes, fees etc. Public company have right to issue stock and
shares for public. Public sector owns the services to provide customer satisfaction and deliever
the best product and services to their citizens.
Purpose: the main purpose of public sector is to protect the interest of public and increase the
standard of living. It also aims to transfer the economy in positive terms. And creates
sources of capital formation. It provides development of economy. Public company

provides great opportunities in terms of development and increase the infrastructure
facilities.
Legal structure: public companies are undertaken by government rules and regulations.
Private organization: private organization run by individual’s persons with one motive earn
maximum profit by giving product and services for example virgin money which provides
personal equity plan and credit card services it is a UK based company. Private companies are
also known as privately held company private company different from public company because
the does not provide shares or stock to the public.
Purpose: the focus of private companies is to get maximum profit and sustain in the market as
long. The main purpose of private firms is to survive in the market as long. It also gains large
number of profit in the market.
Legal structure: In this private sector individuals runs their business on its own ways in this type
of structure they follows their own rules and regulations.
Voluntarily organization: this organization are generally setup for those people who does not
afford their basic needs or disabled peoples for blind peoples, this organization is also known as
nonprofit organization. This organization are generally in form of group, union leaders etc.
Purpose: the main purpose is to protect disabled person. Voluntary organization performs
various task to improve the welfare of the society its main aim is to provide basic needs.
Legal structure: voluntary organization adopts generally three types of legal structure that is
unincorporated association, trust and company limited by guarantee.

P2. Size and scope of different types of organization.
All types of organization want to create their own brand image in front of the customer.
All organizations have their own product and services policies and different strategies to attract
the customer. Private public and voluntarily sector is the different sector from each other. Private
sector company is form for the main purpose is to earn profit and give quality based product for
example there are many food restaurants but among them few are famous like MacDonald,
burger king, domino's, pizza hut, KFC, subway they all provide fast food with different approach
clients are attracted on the basis of their prices, superiority, and their brands. Private companies
provide variety of services to the customers and earn maximum profit. these companies have
lower interference of government. ( Bryman and Bell 2015) Furthermore, the public companies are
the public servants they serve their services to the customers at low cost while private companies
are more likely to earn profit and increase the sales. Public companies provide low cost help to
arrange the funds for the customers and develop the standard of living. Some public companies’
tie-up with private companies to improvise their services for the customers. For example, public
and private hospitals public hospitals are given treatment at low prices so that middle or lower-
class people can afford easily on the other side private hospitals are given heavy expenses
treatment medicines which is not possible to afford. Most of the customer trust on public
organization rather than private organization because some private companies are not
trustworthy in relates of services. Generally there are three types of companies are their large,
medium and small scale business micro business have less than 10 number of employees and
turnover under £2 million on the other side small business company have less than 50 members

and turnover is under £10 million and medium scale business have less than 250 employees with
£50 million turnover.
P3 role organization functions helps to achieve the target
Organization functions are the key roles to achieve the target. (Sekaran and Bougie 2016) They help
to implement the plan in correct formation each department of the organization have their own
roles and duties. There are many organizational functions which helps to increase the
productivity to achieve the goal.
 Financial functions: Finance department is the most important department in the
organization to generate the fund this function of organization helps to create funds for
operational activities public organization create their financial resources through issue
public shares and stocks. And private organization create their capitals from investors
 Human resource functions: human resource is the function who create talented team
members for the smooth working. Hr. function is to connect employees to the
organization goals.
 Marketing: marketing is the core function in the organization. Marketing means to
promote the product by which company generate income. Marketing is the process in
which company explain the advantages or features of the product and services. Marketing
function are interrelated to all the other function of the organization.
From the above explanation all the functions of the organization are same in all the
organization weather it is private sector or public sector. All types of function are connected to
achieve the objective. To achieve the target every organization wants good amount of capital
talented staff to manage and good marketing strategies to increase the brand image. These
functions of the organization help to accomplish the customer satisfaction and sustainability of
the company. These all function helps virgin money to increase their brand image or identify the
needs of the customers.

P4 Positive or negative factors of macro environment upon business operation.
Macro environment is the external environment which affects company either
positively or negatively both. Factors are including in external environment are political,
environmental, social, technological, economical or legal.
Political: these political factors stimulus by government. These factors may change the whole
structure of the company. (Crane and Matten 2016)These changes affect the organization plans,
strategies, marketing plans etc. government changes the fiscal policy, impose new set of rules
and regulation, tax policies, trade tariffs which disturbs organization growth.
Economic: These macro factors affect the economy directly. Economy factors of the
environment affect companies price purchasing power of the consumer. Economic factors are
including inflation rates. Interest rates, foreign exchange. Increasing the rates of inflation may
affect the product prices or change the demand of the product.
Social: social factors are influenced by demographic changes. These factors are changing the
demand and supply of the product and services. These social factors are depending upon
customer needs.
Technological: these factors affect company positively. Technological factors give more
productivity to the company growth. New technology creates innovative strategies for the
organization by which customer generate more interest towards organization like virgin money
gives new credit card facility with new excitement offers in account.
Legal: These factors affect both external and internal factors of the company. Organization must
follow the rules and regulations of government to maintain the sustainability in the market.
Otherwise government take strict action against those organization. These factors protect the
customers against fraud activities. Example government create labor law, consumer laws, safety
standards.
Environmental: Environment factors which affects all kinds of organization. Environment of
the economy is depending upon the all factors like political, economical, legal and technological.
£50 million

P5 Internal and external analysis of organization to identify the strength and
weaknesses.
Organization environment changes on the basis of external factors. There are two
factors micro and macro factors. (Charter 2017. ) micro factors are customers, suppliers,
intermediary, competitors. And macro factors are political, legal, economical, technological and
social. These all factors are changes the market situation. SWOT analysis is the process in which
organization identify the strength, weaknesses, opportunities, threats. These analysis helps
company to take positive decision in terms of growth or internal and external factors identify
SWOT analysis.
Strength(S): strength means the positive tool of the organization by which they grow more in
the market it will be good market image, quality products, good relations etc. strength always
comes from internal which create organization itself.
Weaknesses(W): Weaknesses is the lack point of the organization. It is a negative factor which
company have. ( Wild and Han 2014) To sustain in the market, it is necessary for the organization to
overcome from the weaknesses. These internal factors affect company image in the market.
Opportunities(O): opportunities are those intangible assets which is obtain from external
environment. Opportunities always gives new creative ideas from which company create new
business plan.

Threat(T): Threat is the external factors which is uncontrollable. It is an uncertain situation
which create threat for the company. These external factors affect the company negatively. To
overcome from this threat company, make contingency plans to protect the organization.
P6 strength and weaknesses interrelate with macro factors
Internal factors are always interrelating with external factors. Organization are always
make their weaknesses into strength and make good business plans. ( Ferrell and Fraedrich 2015. ) In
the business organization many factors are affect like micro factors are customers, suppliers,
competitors. Customer are always rational and price conscious they always need good quality
products at low prices. otherwise they switch to other company these competitor’s factors create
organization weaknesses. Like virgin money organization affect from its competitors’ services
like their competitor provide high interest rate on savings. Moreover, like SWOT analysis helps
to identify strength and weaknesses such as TOWS analysis helps to give more powerful
strategic plans by which organization protect itself from uncertain situations.
TOWS analysis is the process in which company generate their strategic plans and
business opportunities to overcome from the threat and weaknesses. In TOWS manager
maximize its strength to minimize their weaknesses. And minimize its threat to maximize its
opportunities. Organization environment is changeable they always modify their plans according
to the situations. A good manager identifies the market and prepare the best business plans to
achieve the organizational target. Overall SWOT/TOWS analysis are the tool to protect the
organization from external internal factors.
CONCLUSION
In this project file organization structure and its importance are discussed that the
structure of private public or voluntarily sector. PESTLE analysis of organization strength and
weaknesses of external factor was discussed that political factors are changed by the government
and technology factors affect company growth and helps to increase productivity. It helps to
identify new opportunities in the market adding to the internal external influences economic
growth and the overall effect on virgin money group that they how they justify decision making
moreover Organization function like hr., financial, marketing function which helps to maintain
organization profit and about SWOT / TOWS analysis helps organization to protect from

uncertain situations and give the good strategic plans so that they increase their profit
maximization. This project file covers all the topic of business and business environment and
what is positive and negative impact on organization was also explained.

REFERENCE
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Charter, M. ed., 2017. Greener marketing: A responsible approach to business. Routledge.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Ebert, R.J., Griffin, R.W., Starke, F.A. and Dracopoulos, G., 2014. Business essentials. Pearson
Education Canada.
Ferrell, O.C. and Fraedrich, J., 2015. Business ethics: Ethical decision making & cases. Nelson
Education.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Wild, J.J., Wild, K.L. and Han, J.C., 2014. International business. Pearson Education Limited.