Business Environment Analysis: Vodafone, BT Group, Peace One Day

This report delves into the business environment, exploring various organizational types including public, private, and voluntary sectors. It examines the characteristics, purposes, and legal structures of each sector, using Vodafone, BT Group, and Peace One Day as examples. The report analyzes the scope and size of these organizations, considering market strategies and financial aspects. Furthermore, it investigates the relationship between organizational functions and their impact on organizational structure, comparing line and matrix structures. The analysis includes the advantages and disadvantages of different organizational structures, and it concludes with a critical assessment of the interrelationships of organizational functions and their influence on overall business structure.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Different types of organisation and their purpose..................................................................1
Public sector : ..................................................................................................................................1
Private sector:...................................................................................................................................2
Voluntary sector: .............................................................................................................................4
P2 Scope and size of different types of organisation..................................................................5
P3 Relationship between different organisational function and link to organisation objective
and structure................................................................................................................................6
M1 Analyse structure, size and scope of different organisation ................................................8
M2 Analyse advantage and disadvantage of interrelationship between organisation functions
and impact on structure...............................................................................................................8
D1 Critical analysis of different business structure and interrelationship of different
organisational function................................................................................................................9
Conclusion ......................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Business Environment is the collection of all individuals, systems, operations and other
related factors, that are or not under organisational control but are capable to affect its
performance, profit, growth. Every business organisation works in a systematic well- defined
environment as it cannot exist in isolation. This type of environment is not good for business and
it gets affected by its activities. The business environment is dynamic as it changes continuously,
it is uncertain in nature, complex and relative as it varies from one location to another. The
assignment is based on telecommunication's industry and different types of private, public and
voluntary sectors are explained. The business environment is affected and classified in two
categories, internal environment and external environment. It also takes into consideration the
legal structure of the business from which it performs. Different size and scope of range of
different organisation are discussed. The relationship between different functions of the
organisation and their link with organisation structure is explained in the assignment.
P1 Different types of organisation and their purpose
The different types of organisations are as follows:
Public sector :
It is a part of the economy which is concerned in giving various governmental services.
It various in different countries and different types of services which include infrastructures as
public roads, bridges, water supplies, telecommunication, etc. It provides services which are
beneficial to whole society rather than beneficial for an individual. It is managed by the
shareholders of the company and the shares of the company are publicized on the basis of stock
exchange. It aims to provide goods at lower cost for the welfare of its consumers, self- reliance,
etc. Example of public sector organisation is Vodafone(Adebisi, Azeez and Oyedeji, 2016).
 Expansion and survival: To increase their importance in the business environment
public sector requires more funds and resources for their development. They issue
shares publicly so to complete the requirement of funds and finance. It is necessary
to increase additional finance for the company to survive in this competitive
business environment.
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 Economic development and surplus: The main aim of the business is to maximise
profit and generate economic growth in the country. There is a requirement to
increase surplus for reinvestment and this is only possible by public saving.
Purpose:
It aims to deliver connectivity and innovative services which can improve the livelihood
of the people and their quality of life. To achieve this is the long run commitment and to manage
their operations responsibility and ethically.
Legal structure:
To increase their business, Vodafone focuses on partnership structure in more than 50
countries as it cost less and is much easier to set up business in different countries. It also focuses
on sole-partnership structure so to increase its market share.
Advantages of public organisations:
1. Issuing share publicly helps in increasing capital through public investment.
2. Easily availability of finance through financial institution like banks, etc.
3. Distribution of risk by selling shares to shareholders.
Disadvantages:
1. Issues between the control and ownership as in public organisation there are a groups of
people working together.
2. Commitment of starting business with higher finance but term is short and it requires a
higher level of transparency.
Private sector:
It is the part of the economy which is also referred as the citizen sector and is run by
private individuals or groups. Its main aim to means of enterprise for profitability, no
interference of government in the business. Non-governmental organisations formed by many
small number of owners. Profit maximisation and loss is maintained by the individuals and who
themselves are responsible for all the ongoings in the organisation. Example of public sector is
BT group(Baumane-Vītoliņa, Apsalone, Sumilo,2017).
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Purpose:
To make the world better by using the power of communications and to deliver a
sustainable revenue growth. To increase the cash flow for a longer period so to reward
shareholders and other stakeholders.
Legal structure:
Legal structure of the business firm is developed according to the companies abilities to
acquire business in other countries and is sole responsible for the profit and loss during the
sustainability. Sole-proprietorship is the legal structure which is followed by BT group as they
acquire many business in all over the world.
Objectives of private sector:
1. To maximize profit: Their main aim is to maximise profit and provide a reasonable
amount of profit to their stakeholders who demand for their share in the profit.
2. Choosing right structure for the organisation: Right structure is really important for the
interest of any business. It develops a business environment and makes it easier for the
employees to work effectively in the company.
Advantages of private sector:
1. The flexibility of the business is maintained as the member's in the private firm know
each other and this enables them to make control over the capital and conduct business
easily.
2. With the approval of the directors shares can be sold and purchased easily so to raise the
capital.
Disadvantages:
1. Formation of company is more expensive and this take more time in setting up the
business.
2. The financial and managerial resources of the company are affected as the private firm
cannot have more than 50 members as compared to public company.
3. As it is not under the strict control of the law public has little confidence in a private
company.
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Voluntary sector:
This sector also known as non-profit sector are not in consideration of government and
are not for profit. It is the duty of the social activity which is undertaken by the organisations
those are non governmental and work for relief. They are the civil sector organisations which
emphasizes for the relationship its civil society. They work in the field to provide social services,
educations and other unmet needs throughout the society. Example of voluntary sector is Peace
One Day.
Purpose:
Their aim is to improve and provide enrichment to the society. They provide social needs
rather than materialistic needs in the existing society.
Legal structure:
They are responsible for the development and providing necessities to the society. If
things go wrong, it is the organisation that is responsible for the legal actions rather than
individual management members of the committee. The have adopted the legal liability structure
which helps them to protect their resources and their property right(Benmamoun, and et.al.,
2016). Protecting human rights and providing them their necessities is one of the core practices
of their legal structure.
Advantages of voluntary sector:
1. Control over whole business: They have full control over the business as there is no need
to discuss about their discussion with the others. To grow in the market and to develop
their goodwill in the business market they are themselves responsible and all daily
activities are done by them.
2. Low accounting cost: The capital required to start the voluntary firm is less than
compared to private and public sector. They require low investment and therefore they
just have to maintain profit and loss balance sheet. No need of cash flow statement.
3. To start a new business, there is a requirement of capital but in the case of voluntary
business it is different. They require less amount of money and no issue of salary for
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maintaining the staff. The financial data are always kept private and fewer rules and
regulations criteria as it is maintained by a single person.
Disadvantages:
1. Scare or less resources for the operation of the business.
2. Need of experts in areas such as marketing, finance, production etc. The problem
of management arises because of less knowledge of business activities.
3. Life span of the business is limited as it depends on the life of the proprietor.
P2 Scope and size of different types of organisation
Size and scope of the organisations depends on their market strategies and goodwill,
reliability and control over the business market.
Scope and size of Vodafone:
One of the biggest telecommunication company in United Kingdom, headquartered in
London. It provides services in regions like Asia, Africa, Europe and Oceania. It is the second
largest firm in terms of connections. It owns and has networks in 26 counties and partner
networks in more than 50 countries. It provides telecommunication and IT services to corporate
clients in 150 countries. Listed in London Stock Exchange and has a market capitalisation of
approximately £52.5 billion.
Vodafone aims to provide its product and services for the transformation of the society
and develop more sustainable standards of living. They wish to set up their ambitions to deliver
connectivity and innovate services for the people so to improve their standard of living and
quality of life. To achieve there vision is their long-stand commitment to increase operations and
manage responsibility and all functions ethically. They are constantly increasing in the market
and increasing their customer, and increasing the profit rate. Their ability to attract and retain
their customer can be seen as they bring new innovations in the market competition(Bhowmick,
and Prasad, 2017).
Scope and size of BT group:
BT group is a holding company which owns British Telecommunications plc. It is a
British multinational telecommunication company headquartered in London, United Kingdom.
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Operates in around 180 countries and is one of the largest provider of mobile, fixed-line and
broadband services in UK. It also deals in television subscription and IT services. It has an over
18 million customers in Great Britain. Employment of more than 110,000 and worth around
US$42.946 billion.
At the present time BT is one of the multifaceted organisation which is offering consumer
goods and services with the help of new technologies. It alongside is also increasing by giving
commercial offerings to consultancy and business solution. It is acknowledged with the primary
source of the consumers with commercial outlets and so there focus falls within this function.
The company aims to increase its sales and provide most adequate products to their customers. It
also aims to reach many countries with the service they provide and to attract and retain new
customers(Cai, Feng, and Zhang, 2016).
Scope and size of Peace One Day:
It is a non-profit organisation and its objective is to make the International Day of Peace
remembered in the society. Founded in 1999 by British documentary film-maker and actor
Jeremy Gilley. It is a welfare and charitable organisation focuses to provide peace and harmony
in different part of the world.
It scopes is to establish peace by making it a day that self-sustaining and is remembered
for global unity. They want to make it reach to every individual and a day of intercultural
cooperation what humanity has never seen before.
P3 Relationship between different organisational function and link to organisation objective and
structure
Vodafone follows Line organisational structure whereas BT group follows Matrix
organisational structure. Line structure means the whole company works under a single
organisational structure. The main power and authority is with the senior most person of the
company and do have all the control on small and medium enterprises. Communication is
through line structure, members convey their messages to their superiors or the subordinates. It is
a pyramid shape structure where the upper portion entertains the senior authority and the lower
portion entertains the employees and subordinates. In the company managers, subordinates
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employees and consumers with their activities are involved in the organisational
performance(Caiazza, Shimizu, and Yoshikawa, 2017).
Vodafone is one of the largest telecommunication organisation ans its purpose is to
provide services to the consumers and give them a quality life. Functions which affect the
structure of the organisation and is interrelated with the organisational objectives are:
1. To decide the objectives: To run the business effectively it is necessary to fix the target
and plan for them to achieve it accurately. Objectives of the business relates to the
success and to maximise profit. The organisational function affects the structure of the
organisation as the managers goals are different from those of employees and they
individually make effort to achieve their respective goals. To effectively achieve these
goals the management leaders help them as if the companies objectives are achieved then
it is easier to accomplish individuals goals. Sometimes employees suggestions are also
beneficial for the organisation. Sharing ideas makes it easier for the employee-employer
to have a strong relationship altogether.
2. Allocation of resources: Proper allocation of resources is the main function of the
company because lack of resources will result in efficiency of the organisation. If these
resources are not properly utilised in the organisation it may result in inefficiency in
production. The allocation of resources generates new ideas and techniques to attract and
retain customers as employees are free to use the resources and create outcomes.
3. To fix the responsibility: Responsibilities are given to the employees and are required to
complete their duties properly. If they fail to complete the task given then it can be said
that they are responsible for their business activities. Manager need to delegate
responsibility to their employees according to the skills and abilities and their ability to
work and provide results.
4. Specialisation: Organisation need to promote specialisation as the technology is
developing and there is a need to promote new innovations and increase performance.
Different functions are to be performed by experts which helps in increasing the value of
the organisation and reach the desired goal. By developing innovative ideas, the
employees helps in building their image as well as organisations value(Camillus, 2016).
5. To define the employee's role: It is the requirement of the organisation to make
employees know about their duties and responsibilities. To maintain relation in the
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organisation they need to know the importance of their position. If employees are
satisfied with the management and feel importance in the organisation, they are
motivated towards their work. Structure of the organisation is affected by the trust of the
employee's in their respective departments.
M1 Analyse structure, size and scope of different organisation
Vodafone uses the line organisational structure whereas BT group follows matrix
structure. It is analysed that line organisational structure is the best suitable with the business
objectives and products and services provided by the organisation. Vodafone focuses on
increasing the efficiency of the product and brings innovation in its services and the line
structure is a good structure which they are using as it enables them to take ideas from their
subordinates as well. In this structure the top management gives prior decisions for the company
they make proper ideas related to the organisation and seeks suggestions from the lower
management as well. They welcome subordinate to give suggestions for the organisation which
is helpful for the development of the company. It makes easier for them to create a healthy
relationship among themselves. Employees are also satisfied with this decision and feel
important in the organisation and are motivated by the act. The organisation is well known in the
market and their work efficiency is also enhanced by employee's dedication towards work. It
helps in achieving the organisational goals and objectives and new ideas help in increasing
productivity of the company. The organisation offers services for their customers and provide
quality services as mentioned in the objectives(Doh, Luthans, and Slocum, 2016.).
M2 Analyse advantage and disadvantage of interrelationship between organisation functions and
impact on structure
From the organisation functions it is analysed that there is a relationship between
organisation function and its structure. As organisation functions are implemented by the
responsible personal in the company and are structured by the top management to the lower
management. It is known from the organisation function that there is a need to assign the roles of
the employees in the company and provide them with their responsibilities It is necessary to
allocate resources to the employees and utilisation of them in an adequate manner is the
responsibility of the employees. Providing knowledge about the work makes it easier for the
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subordinates to give their outcomes in the company(Eling, and Schaper, 2017). There is also a
requirement in the organisation for the specialisation of the employees, if they have skills and are
ready to make their impact in the organisation the goals are easily achievable and beneficial for
the organisation.
D1 Critical analysis of different business structure and interrelationship of different
organisational function
It is analysed that Vodafone business structure that is line organisation structure is known
to be best suited for the organisation's success. The structure is interrelated with the function of
the organisation as it focuses on the development of the organisation and in this structure the top
management assigns the work to the lower management and decisions are taken by the top
management. They make it easier for the employees to work in the healthy business environment
and create a strong relationship between them. In matrix structure they are aligned together and
there decisions are taken in the departments themselves and for any wrong they are responsible,
whereas in line structure the decisional power is with the top management and they are
responsible for their decisions(Kljucnikov, and et.al., 2016). Vodafone business structure allows
them to make better innovations in the organisation and generate better outcomes for the
organisation.
Conclusion
From the above, it is concluded that to succeed in the business market it is essential to
have a good relationship within the organisation as well as with the outside environment. The
organisations structure is really important for the development of the individual and for the
company as well. It is essential for the telecommunication industry to generate new innovations
to survive in the business environment. Organisations gives employees directions, roles and
responsibilities to make sure that they succeed in the business and are able to generate new ideas
for the development. Organisations purpose is to make their company generate quality services
for the employees and deliver good outcomes.
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REFERENCES
Books and Journals
Adebisi, S. A., Azeez, O. O. and Oyedeji, R., 2016. Appraising the Effect of Boko Haram
Insurgency on the Agricultural Sector of Nigerian Business Environment. Journal of
Business Systems, Governance & Ethics.11(1).
Baumane-Vītoliņa, I., Baumane-Vītoliņa, I., Apsalone, M., Apsalone, M., Sumilo, E., Sumilo,
E., Jaakson, K. and Jaakson, K., 2017. Ethical behaviour and honesty in post-Soviet
business environment. Baltic Journal of Management.12(1). pp.46-62.
Benmamoun, M. and et.al., 2016. Gulf Arab E‐Business Environment: Localization Strategy
Insights. Thunderbird International Business Review.58(5). pp.439-452.
Bhowmick, A. and Prasad, C. G., 2017. Time and Cost optimization by Grid Computing over
Existing Traditional IT Systems in Business Environment. International Journal.5(3).
Cai, D., Feng, T. and Zhang, Z., 2016. The Fit between External Involvement and Business
Environment: Evidence from Chinese Manufacturing Firms. International Journal of
Information Systems and Supply Chain Management (IJISSCM).9(3). pp.46-64.
Caiazza, R., Shimizu, K. and Yoshikawa, T., 2017. Cross‐Border M&A: Challenges and
Opportunities in Global Business Environment. Thunderbird International Business
Review.59(2). pp.147-151.
Camillus, J. C., 2016. The wicked challenge of the business environment. International Journal
of Business Environment.8(1). pp.19-31.
Doh, J. P., Luthans, F. and Slocum, J., 2016. The world of global business 1965–2015:
Perspectives on the 50th anniversary issue of the Journal of World Business: Introduction to
the special issue. Journal of World Business.51(1). pp.1-5.
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
Operational Research.258(3). pp.1082-1094.
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