GlaxoSmithKline (GSK) Business Environment Unit 1 Report

This report provides a detailed analysis of the business environment, focusing on different types of organizations, their structures, and the impact of macro and micro environmental factors. It begins with an introduction to organizations, highlighting key features such as teamwork and leadership. The report then examines public, private, and voluntary sector organizations, detailing their characteristics, goals, and legal forms. It explores the size and scope of organizations, including small and medium-sized enterprises (SMEs), and factors that determine organizational size. The report also investigates the relationship between organizational functions and structure, using GlaxoSmithKline plc (GSK) as a case study. It includes an analysis of the macro environment using the PESTEL model and an internal and external analysis using the SWOT model, providing a comprehensive overview of the business environment and its impact on organizations.

SUBMISSION FORM
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Unit Number &
Unit Title
Title
UNIT 1 BUSINESS AND THE
BUSINESS ENVIRONMENT
GlaxoSmithKline plc (GSK)
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Date of Submission April 24th 2017
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Contents
Introduction................................................................................................................................6
TASK 1......................................................................................................................................6
P1 Types and purpose of organizations.................................................................................6
P2. Size and scope of a range of different type of organisation.............................................9
P3. Relationship between different organisational functions and link to organizational
structure and objectives........................................................................................................12
TASK 2....................................................................................................................................15
Introduction..........................................................................................................................15
1. Positive and negative impacts the macro environment has upon business operations and
applying PESTEL model......................................................................................................15
2. Internal and external analysis of organization using SWOT model................................16
References................................................................................................................................18
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Introduction
An organisation constitutes of a group of people who are organized for a particular
purpose. Purpose may be any kind of business, entrepreneurship or any department of
government. Some of the most elemental features of any organisation includes: teamwork,
sharing same goals, leadership, adapting to the risks and the like which indicates of the
organization to be a healthy one.
This particular assignment includes the analysis of the different types of
organizational, its scope size and organization structure. Further, this includes the impact of
the macro and micro environment factor on the business organisation that is GSK.
TASK 1
P1 Types and purpose of organizations
The different types of organisation are discussed hereafter that exemplifies the
structures, scope and size of the organization
a) Public Sectors Organisations
Basic characteristic of Public organisation
Public ownership consists of the all the organisations that are governmental or controlled
by the public. These often include organisations that are publicly funded agencies,
enterprises and the entities that include delivering public programs, services or goods
(Bouckaert, G. and Van Dooren, 2016). The characteristics of the public organisation
includes are presented in terms of the following:
State ownership: The enterprise ownership is vested to state that may be under Central,
local or government ownership.
State control: It is controlled both by government directly in relation to its functionality
and management. The government exercises the control in relation to any kind issues
and exercises the control.
Public accountability: These types of organisations are accountable to the public owing
to their funding being done by public. The accountability is done though committees,
legislations, ministers, audit institutions and the like.
Autonomy: These organisations are free from the daily interference in terms
management and affairs excising the utmost autonomy.
Coverage: These types of organisations cover all areas, fields of activity and operations
of the organisation.
Goals and objective

The goals of the public organisations includes the: economic development, self-reliance,
employment generation, development of backward areas, economic surplus, consumer
welfare, public utilities and egalitarian society, defense, labor welfare and the like.
The Legal form of Public Organisation
The legal form of any public organisation is that of the corporation, companies or
franchises as well. This is because, it has many rights, duties, and privileges as well
(Adamas, 2014)

a) Private sector organisations
Organisations that are run by companies or individuals are the private sector that is
the part of the economy of any country. The goals and objectives of private sector
organization include profit maximization, restricting access, transparency in reporting.
Types of private sector organisation
1. Sole traders: This is determined to be self-employed public sector where individual
is the owner. Main focus of the firm to gain maximum profit and in attaining the set of
goals that are developed by the firm.
 Advantages: Low costs as start ups, owner is the boss. The profits are limited to the
sole trader.
 Disadvantages: Unlimited liability, no legal distinction, limited capacity to raise
capital.
2. Partnerships: The business that is run by people who are not more than 100 members
is known as partnership. Partners has to register as self employed. Scope of this
business is to work coordinating with each other so that the objectives attained can be
reached.
 Advantage: Partners share the responsibility, rich source of capital, minimal tax
fillings, no double taxation.
 Disadvantages: Unlimited liability, self-employment taxes
3. Companies: Company is a distinct entity that is legal and separate from shareholders.
These can be private or public. Scope is to understand the requirement of customers
and provide to them products and services accordingly.
 Advantage: Limits liability to shareholder, easy to transfer ownership by selling
shares favorable taxation rates
 Disadvantage: Expensive to establish, financial affairs are public, profits being
distribute, directors held personally for legal obligations.
4. Joint ventures: Joint ventures are governed by the registered companies. Main scope
of the business is to gain maximum profit.
 Advantage: sharing risks and costs, access to new markets, distribution networks
 Disadvantage: Blurred objectives, difference and management in the organizational
culture.

5. Franchising: Companies are already established and holds reputation commendable
shares in the market. This type of organizations sells their copyright to the public.
 Advantage: The risk of business failure is very less, established market share,
experience is required.
 Disadvantages: Higher costs, monitoring the ongoing franchise is intrusive, profits
shared among all the franchises.
6. Licensing: Licensing means leasing or renting the intangible asset. This allows the
company to carry out the confidential business that is authorized to the holder of the
license in the business. The creation and the management are all done in terms of the
contract.
 Advantage: The investment is lesser for expansion from the side of the owner.
 Disadvantages: Quality is not maintained, less control over the licensed business.
There are different type of legal framework that are to be followed by all the types of
organizations. It is unethical and is illegal when legal frameworks are not followed by
companies.
c) Voluntary sector organisations
A group of voluntarily interested people, who held same viewpoints, are particularly
with the aim to carry out charity. These are also known as non-profit organisations. The aim
and objectives of the voluntary sector is to improve the condition of the society in general.
Often the aim and objectives are particular to any kind of disease or societal issue which will
be needs to be done by them.
Types of voluntary organisations:
There are two types of voluntary organizations and difference between the two
includes the following:
NGOs: NGOs or non-governmental organizations are not maintained by the
government but it is maintained by the funds that organisations which is raised by the
government. The operational area is large. The registration is done through Societies
Registration, Trust Under Public Trust Act and the like (Chelladurai et al.2017).
NPOs: NPOs or non-profit organisations do not go for the division of the funding
between the shareholders and the owners of the organization rather extra funds are raised for
the purpose of the objective of the firm (Chelladurai et al.2017). The operational area is
limited. The NPOs are incorporated under the cats or sections like Company Act.

P2. Size and scope of a range of different type of organisation.
The scope of any organisation relates to the establishment and the widespread of the
business in the particular industries. The scope of any organisation depends on the type of
and structures of the business organization which includes: Sole proprietorship, Joint Stick
Company, partnership and the like.

Factors that determine the size of an organisation:
There are six major factors that determine the size of any business organisation
(Michael and Popov, 2016). These include the following:
 Managerial ability
 Availability of labour
 Nature of the business,
 Availability of Finance
 Entrepreneurial skills
 Extent of the market
Small and medium sized enterprises:
Enterprises employing less than 50 employees but more than 10 are known Small and
Medium enterprises. The number often varies from country to country and in UK the upper
limit is 250 employees. These are independent and non-subsidiary
Importance of SMEs in the UK owes to the following:
 Turnover: This provides a combined turnover of £1.6 trillion in the last financial year
(Owen et al. 2016).
 Employment: SMEs contributes largely to the job creation in United Kingdom that
accounts of 60 % of in the private sector (Kanavos and Angelis, 2014).
 Growth: Owing to innovation, growth is huge that is about 47% raise from 2009 to
2013 that contributed to the recovery of the economy of UK (Bloch and Bugge,
2013).
 Industry: The largest industries are all SMEs, including retail, repairing,
manufacturing and revenues from these include 45% of the economy of the
organisation (Kanavos and Angelis, 2014).
Scope of different organisations
The Scope of the different organisation is different as per the type that includes: National
Company, International Company, Multinational Company and Global Company.
The structure, size and scope of the different organizations determine the
way how it is going to operate the organisational operations in manufacturing any
product or providing the services to the organisation. With the increase in the size
of the organisation the structure is evident to change. The organizational
objectives determine what type of strategies is required for its achievement which

further necessities the increase in the size of the organisation and its structure as
well.