Analysis of Business and Business Environment: A Comparative Report

This report provides a comprehensive analysis of the business environment, focusing on the structures, purposes, and interrelationships of various types of organizations. The report examines three organizations: Ryanair (private sector), NHS (public sector), and Cancer Research UK (voluntary sector). It details the purposes, legal structures, sizes, and scopes of these organizations. Furthermore, the report analyzes the interrelation between organizational functions and objectives, particularly focusing on the roles of HR, finance, and IT departments within Ryanair. The analysis explores how these departments contribute to the achievement of organizational goals, including revenue enhancement and customer satisfaction. The report also includes a critical analysis of different business structures and their complexities, providing insights into how these structures influence organizational performance and objectives.

Business
and
Business environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of organisations and their purposes.............................................................3
P2 Size and scope of a range of various type of organisations...................................................5
M1 Analyse Structure, Size and scope of different organisation with the business objectives
and products offered by the organisation....................................................................................7
TASK 2............................................................................................................................................7
P3 Interrelation between organisational function and organisational objectives........................7
M2 Analyse the advantages and disadvantages of interrelationships between various
departments.................................................................................................................................8
D1 Critical analysis with the complexity of different type of business structures .....................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business is defined as an activity by which an individual can makes money in terms of
purchasing and selling goods and services. In other words it is a work or system of an
organisation where goods are delivered to people in terms of achieving money. Whereas,
Business environment is referred to surroundings of a firm which influences the firm in both
ways such as internal and external (Business environment, 2017). In present assignment the
taken organisation is Cancer Research UK in a voluntary, Ryanair in private sector and NHS in
public sector. This report is discussed about various types of organisations and their purposes
along with their structures. Furthermore, it is discussed about several functions of different
departments and their interrelations in order to achievement of organisational objectives.
TASK 1
P1 Different types of organisations and their purposes.
In present scenario there are various firms and they performs their business activities in
various sectors with the aim of making profit and satisfying demands and needs of customers.
Every business firms wants to enhance their sales through attracting large number of users. There
are various organisation which are divided in Public, private and voluntary which are further
explained as under along with their purposes and structures:
Public organisation – These organisation are defined as a Non profit organisation which
is controlled and monitored by government. National health services is a public sector
organisation in UK with the aim of providing health services to public (Schaper, 2016).
Purposes of NHS are:
 To promote best medical services with making innovation in health services.
 Provide quality services to economical backward people of the nation.
 To improve the social and economical conditions of the residential.
Legal structure

Local government – it controls and monitors a small portion of organisation such as a
township or city.
State government – It provides rules and regulation to the whole state. It has a duty for
maintaining the health services in the state.
Central government- This government regulates the economy of a country. It has a
responsibility to maintaining law and order of a nation.
Private organisation- This type of organisations wants benefits at any cost. This type of
firms are created by an individual or a group of individuals who makes plans and policies for
achieving their goals in a time period. The chosen organisation in private sector is Ryanair which
provides services in airline sector and founded in 1985. Ryanair aims to understand their
customers and deliver their services as per their requirements (Wilton, 2012).
Purposes of Ryanair are given as under:
 To provide value of money to their customers
 To gave safety and quality in services to the users during travel.
 To make a positive impact on the society in which they are operating.
Legal structure Partnership – It is an arrangement in which two people or a group of people perform
their tasks for achieving goals. The shares of the profit and loss are divided in both
parties as per the agreement. Sole Proprietorship- In this form of business it is regulated and controlled by a single
party. Who is liable for the profit and loss of the firm. Limited company – It is the structure in which the partners have limited liabilities. In
other words, members are not responsible for any law-breaking until their legal act can
not be proved. Multinational corporation- MNC are the business firms who operates their business
activities in one or more than one countries in which their headquarter is established in a
specific country. Global company- In this type of firm, they delivers their product in several countries with
using their brand name. Therefore, head office has a responsibility for making effective
plans and policy.

 Transnational company- It is also perform their business activities in more than one
countries but they have no specific headquarter.
Voluntary organisation- this type of organisation are created by a group of individuals
who came together for removing the errors which are occurred in the society with making better
environment. These type of groups are working for wellness of atmosphere without making
money. Those amount which is earned by them through various platforms they spend it on the
growth of society. Cancer Research UK is the organisation which is considered as public
organisation. The main aim of this organisation is controlling the deaths due to cancer with doing
various activities at institutes, universities and hospitals across the UK. Its main objective is to
raise awareness for diseases such as Cancer and it can be done through effective advertisements
and promotional activities. It consists of 40000 volunteers with an objective of removing cancers
and provide a healthy life style to the people.
Purpose of Cancer Research UK are mentioned as follows:
 To provide a healthy lifestyle in society with removing diseases such as cancer.
 Doing various researches with raising awareness in the people to understanding cancer
and its different kinds
 Work with various organisation in joint venture for giving impact in the global fight
against cancer (Okpara, 2011)
Legal Structure:
 Trust- These type of organisations are created with trust so they doesn't need any
membership.
 Association- It is a group of volunteers who are performing their task without making
any profit.
P2 Size and scope of a range of various type of organisations
In the present scenario, market is more competitive therefore, It is essential to make
effective plans and policies for doing business activities in terms of enhancing development and
productivity of firm. There are various firms which have different size, scope and legal structure
due to their different objectives. These are given as under:
Ryanair : Size - it was established in 1985 with a 15 seater turboprop plane and now this is a
largest booking website and airline of Europe in terms of scheduled passengers. It has

now 800 aircraft approx which are used as a charter aircraft. It serves their airline
services with the help of 14000 employees in more than 30 countries. According to
financial reports of company the revenue of Ryanair was £7.151 billion in 2017(Ropega,
2011.). Scope – Ryanair has build their market presence in last 10 years due to change in their
effective plans and policies. Its earlier success was depends on the slogan of the company
'Low fares, Made Simple' . It is proved as a best technique for attracting number of
customers. Vision – Ryanair wants to provide value of money to their customers through quality
services at a reasonable services in order to getting satisfaction of the targetted customers.
 Mission – To reduce their costs and perform activities with efficiency in order to taking
competitive advantage in the airline sector (Lai, 2011)
NHS: Size – It is one of the largest public organisation in the world. Their staff includes 1
million employees such as 5,87,647 non clinical, 16,211 finance 1,11,127 dental and
18,862 ambulance staff. Scope – It is a public organisation and it has a huge market presence in health sector.
Company is providing health services in UK and other countries which will makes their
sustainability for long time.
 Mission – NHS has an objective of serving large number of people which can be possible
through their efficient staff. NHS have a responsibilities to provide quality health services
in the nation.
Cancer Research Size - It is a charity organisation which was came into affect after merging Imperial
Cancer Research fund in the year of 2002. It is doing world class research for removing
Cancer disease from UK. In the organisation they making money by donations, events,
fundraising and corporate partnerships with 40,000 volunteers in it. Scope – The Scope of Cancer research is to bring awareness in the people towards cancer
and with finding treatments of it. It can be spread by proper promotional activities and
various marketing campaigns

 Vision – they gave focus on taking scientific quality and a proper environment in their
researches with using right people in research. Its visionaries by 2020 are to spreading
awareness about cancer in the people of nation. It can be possible by running campaigns
such as 'say no to smoking' or ' Together we will beat Cancer'
 Mission – The organisation has to control the deaths which are happened due to cancer. It
can be overcome through diffusing awareness to people in various ways such as their
different kinds, prevention, diagnoses methods etc.
M1 Analyse Structure, Size and scope of different organisation with the business objectives and
products offered by the organisation
Different organisation with the business objectives and products offered by the
organisation which are as following:
Private organisation- Ryanair provides their services in airlines sector, it was
established in 1985 and headquarters in Dublin, Ireland. Its network is spreading in 35 countries
such as Europe, Africa and various big countries of Middle east. Due to huge market share and
strong presence in market place, they have maintained their image as low fair service provider in
this sector which helps their management in achievement of organisational goals in a given time
frame (Newberry, 2012).
Public Organisation- NHS is the largest public organisation by the number of
employees due to their large number of staff it can provide better services in health sector. It
offers health related services at a reasonable prices due to which it can successfully achieve huge
customer strength which is one of the main objective of NHS.
Voluntary Organisation- Cancer research is an organisation which has a main aim of
controlling the increasing deaths due to cancer it runs their programme with the 40000 regular
volunteers. It gave a huge impact on government policies by raising fund of £10 million. Its aim
is to provide awareness in the people regarding Cancer and removes it by various researches.
TASK 2
P3 Interrelation between organisational function and organisational objectives
There are a large number of employees who are working in Ryanair at different
departments for achieving organisational goal of organisation. It includes various departments
such as marketing, IT. The top level of management includes the chairperson, board of directors,

and shareholders of the organisation who are creating guidelines for middle and lower level
employees. Therefore, It is essential to Ryanair for determining various departments and their
efforts in achievement of organisational goals. The interrelation between various departments are
explained as under:
HR Department: It is necessary for every organisation to create a Human resource
department because it has a responsibilities for recruiting highly knowledges candidates in order
to increasing development and productivity of firm. In the context of Ryanair their HR manager
should hire most capable persons who has the skills and ability for performing the task. It brings
cooperation and interrelation with other departments so that, they will work effectively towards
the objective of the firm.
Finance department: It has a better relations with other departments because it have a
responsibility to providing funds to other departments which is necessary for doing operational
activities in efficient manner. For e.g. marketing department of Ryanair wants to doing
promotional activities for attracting more number of customers which can be possible through
the help of finance department. It will gave assistance to management of Ryanair in enhancing
revenue of firm so that their predetermined targets will be achieved in systematic manner.
IT department: IT department have a duty to perform their activities through use of
advancement in techniques. In addition to this, it plays an important role in the organisation with
maintaining confidential reports of the organisation. For e.g. IT department requires various
employees who have ability to using latest tools and techniques. Therefore, it will contact to HR
department for recruiting eligible candidates with the proper knowledge of tools. It will improves
the financial condition of the Ryanair by new recruited employees and they will easily achieve
their objectives in a given time period (Okpara, 2011).
M2 Analyse the advantages and disadvantages of interrelationships between various departments
Interrelationships between various departments have different advantages and
disadvantages which are given as under:
Advantages- It is very necessary to maintain various department in Ryanair. Because it
gave maximum efforts from several departments which gave growth and sustainability of firm. It
maintains the relationship between different type of departments and their employees.

Disadvantages – The relationship between various departments of Ryanair provides huge
conflicts between employees because the manager of several departments have their own
opinions and beliefs which gave negative impact on the growth of organisation.
D1 Critical analysis with the complexity of different type of business structures
There are several complexities in every organisations which are further explained in brief
as under:
Private organisation – Ryanair is restricted to sale their shares to public because they
have to take permission for this, therefore it gave complexity in their culture.
Public organisation- NHS has to maintain their activities under the regulation of
government. Furthermore, if the management have to take necessary action regarding the
organisation firstly, they have to take permission from the government.
Voluntary- This type of organisation has to take permissions from government
authorities before starting their activities in any nation. Cancer Research has to follow various
guidelines which are made by UK government before conducting a research programme
(Gunningham, 2017).
Complexities in Interrelations of different organisational functions
Managers of every departments have different views and way of working which can
bring difficulties towards interrelation of departments in order to achieve organisational goals
and objectives. Lack of communication among departments may create misunderstanding due to
which roles or responsibilities of employees are not identified.
CONCLUSION
It has been concluded from the above report there are many organisations in a nation
which have their own scopes and performs their business activities in different sectors.
Management of Ryanair has required to encourage their various departments to coordinate with
each other and gives mutuals support towards achievement of organisational objectives This
report identifies the various organisations such as public private and voluntary along with scope
and visionaries.

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Online
Business environment. 2017. [Online]. Available through:
<http://www.investorwords.com/19252/business_environment.html>.