Unit 1 Business and Business Environment Report - BTEC Higher National

This report provides a comprehensive analysis of business environments, organizational structures, and functions, focusing on private, public, and voluntary organizations. It begins with an introduction to the business environment and its stakeholders, followed by an examination of different types of organizations, including Dyson Limited (private), BBC (public), and British Red Cross society (voluntary), detailing their legal structures, sizes, scopes, and objectives. The report then explores the interrelationships between various business functions, such as R&D, purchasing, HR, and marketing, and how they contribute to organizational structure and efficiency. It also includes a PESTLE analysis to identify the positive and negative impacts of the macro environment on business operations. Furthermore, the report conducts internal and external analyses of a specific organization, examining its strengths and weaknesses and how they relate to macro factors, culminating in a critical evaluation of the impact of macro and micro factors on business objectives and decision-making.

UNIT 1
BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain different types of organizations with legal structure.................................................3
P2 Explain size and scope of different types of organization......................................................5
TASK 2............................................................................................................................................8
P3Explain relationship between different functions and how they link to organizational
structure........................................................................................................................................8
CONCLUSION..............................................................................................................................11
TASK 3..........................................................................................................................................11
P4 and M3 Identify positive and negative impact of macro environment using pestle analysis
upon business operations...........................................................................................................11
TASK 4..........................................................................................................................................14
P5 and M4 Conduct internal and external analysis of specific organization in relation to
strength and weaknesses............................................................................................................14
P6 Explain how strength and weaknesses are interrelate with macro factors............................15
D2 Critically evaluates the impact of macro and micro factors on business objectives and
decision making.........................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

TASK 1
INTRODUCTION
Business environment helps in developing customer’s relationship due to which proficiency
within business is to be maintained. Within business environment several stakeholders are
indulged such as competitor, customer, suppliers, employees, government etc. All these are
essential for growth through which number of opportunities is captured that leads higher success.
Within this BBC is taken as public organization, Dyson as private organization, and British Red
Cross society as voluntary organization. This report undertakes several types of business entity
along with their size, scope, legal structure. It also inculcates interrelationship between several
departments that helps in taking decisions for attaining objectives.
P1 Explain different types of organizations with legal structure
A business entity is termed as that process where several people are involved to achieve a
common objective. These organizations are several types that are elaborated below:
Private sector organization- It refers to that type of organisation in which no government
interference is reflected in operations and functions of business entity. It is mainly owned and
regulated by a group of people and an individual person with the purpose of generating profits
according to their scope and size(Mutalimov and et. al., 2020). The best example of Private
Sector Company is Dyson limited that is a leading British organization deals in electronic
appliances like hair dryer, vacuum cleaner, desk fans, LED lamps and many more.
 Purpose- The main purpose of this organisation is to earn high profits by satisfying
customers requirements related to electronic appliances. The main aim is to maximise the
working efficiency within office by selecting experiences and talented candidate to
perform task efficiently.
 Legal structure
o Sole proprietorship- It is owned and regulated by an individual person with the
objective of earning profits. In this all risk and profits are hold by an individual
authority because they are the sole owner of an enterprise.
o Partnership- In this type of structure operations of business are done by two or
more than two people within a partnership agreement. In this partners are bound

in partnership agreement where they are working for earning profits. All partners
sharing profits and loss as per presented in agreement of partnership act. This act
helps in taking the decisions effectively and efficiently for benefits of an
organisation.
o Company- It is reflected in two ways- Public limited company and private
limited company. When the holding of company majorly in the hand of public are
known as public limited company, whereas when authority mainly are in hand of
private shareholders than it is called private limited company(Khajeheian,
Friedrichsen and Mödinger, 2018). In this type of entity separate entity are
provided to their holder that are work under the companies act to run the
operations appropriately for gaining profits. Dyson limited are working under
private limited company to gain profits in dealing electrical appliances.
Public sector organization- It refers to that type of business sector which is hold and controlled
by government to provide services to people of nation. The main aim of this organization is to
work for welfare of citizens not for gaining profits. The best example of this type of organization
is BBC that is a public service broadcaster to citizens of UK.
 Purpose- The key purpose of this sector is to offer benefits to country people by
providing goods and services(Quinlan and et. al., 2019). In this they offer entertainment,
graduate training to businesses for welfare of people.
 Legal structure
o Central government- It refers to that which is several organisations are working
under the control of central authority. They are mainly responsible for collecting
funds to public and use same for their welfare(Halbert and Ingulli, 2020). BBC is
that company which is hold and controlled by central government.
o State government-These types of businesses are working for limited but having
high holding of central authorities in their operations.
o Local government-This type of institutions is owned by local government like
local council and several other corporate parties. They collect funds in the form of
local tax for welfare of people.
Voluntary organization- This is a type of organization that is formed by number of individual
people who voluntary work together to attain objectives related to public welfare. They collect

funds from number of organizations as trustees and also from government parties(Cyphert and et.
al., 2019). For instance- British Red Cross is a leading organization that is working for helping
citizen of country.
 Purpose- It main purpose is to offer social benefits to people of nation and solving social
issues. They are not focus on earning profits because they are working for society welfare
so that they live healthy.
 Legal structure
o Trust- It refers to that type business entity that is working for providing charities
to the voluntary organisation and put control over it(Contractor and et. al., 2020).
It is mainly hold by trustees in order to handle monetary needs of firm to fulfil
objectives properly. British Red Cross is fall under this category of voluntary
association.
o Unincorporated association- These are those organization that are limited by
guarantee and managed by communities because they need to follow
memorandum of association.
P2 Explain size and scope of different types of organization
Dyson Limited
 Background- It was a leading company that was established in 1991, July by James
Dyson. The companydeals in manufacturing of electrical appliances such as vacuum
cleaner, hair dryer and many more. It headquarters in England.
 Vision- the vision of Dyson limited is to adopt cost effective strategy for supporting thier
customers so that they are loyal with longer time.
 Mission- Its mission is to provide solution to customers for the everyday issues that helps
in attaining profitable results in theirlong term sustainability.
 Objectives- key objective is to manufacture cost effective equipment that helps in
minimising wastage.
 Size- It is a leading British company having more than 12000 working employees within
the working area of organisation(Belyaeva, 2018). They are working effectively with
company huge resources in attaining competitive market.

 Scope- Dyson have their market on global countries and focus on developing the
presence in all over the world by dealing with complexities effectively.
 Product and services- Dyson limited deals in number of electrical appliances like, desk
fan, cleaners, hand dryers, heaters, vacuum cleaner and many more.
BBC
 Background- It is a public service broadcasting company in UK that is controlled by
central government. The company was founded in January, 1927 by HM government,
John Reith (Ritter and Pedersen, 2020). This company offers news, entertainment
services so that people of nations have knowledge about what was happening in the
country and world.
 Vision- BBC vision is to work for people entertainment, educate etc. so that their living
standard is to be enhanced.
 Mission- Mission statement of BBC is offer services for enriching people lives with
services and programmes that helps people to learn new things, entertain in their leisure
time. Simply developing the standard of living of people in living society.
 Objectives- The major objectives of BBC are to build and maintain trust of people
because audience are heart of everything that BBC do. They highly focus on providing
quality services that worth to money.
 Products and services- BBC offers mainly ten TV channels, an internet service, and
radio stations along with extensive website (Bruijl, 2018). The company provide their
services in around 42 languages including English.
 Size- The size of the organisation is huge as there are around 22,401 employees are
working to offers services to people of society for entertain and educate them.
 Scope- The scope is wide as they offered services in not in UK but many other countries
in Europe and also in other countries in all over the world.
British Red Cross society
 Background- It is a charity funded organisation that is working in UK since 1870. This
business entity is working for offering benefits to citizens without knowing their religion
and nationality. They are operating their function mainly in UK.

 Vision- The major vision of a company is to provide services to people of society for
their development instead to focus on religion or a nationality.
 Mission- The major mission of British Red Cross Company is to promote healthy life
among people so that they independently focus on their health(Trigkas and et. al., 2020).
It promotes health and we’ll being among people.
 Objectives-Key objective of British Red cross is to encourage and support people for
enhancing a living standard within the living nation.
 Size- the size of a British Red Cross is having a huge number of staff that is around 4000
people who are voluntary involve in this to managing operations effectively.
 Scope- in this the scope of business entity is to offer prominent services and products to
customers that help society people in easy and healthy living.
 Products and services-British Red Cross offered health and social care services to
people in the society mainly support vulnerable people within UK.
Analyse how scope, size etc. of different organization sector link to objectives and offerings
which they offered in market
From above report it is to be analyzed that there are several types of business structure such
as public, private and voluntary organization. All these organisations are working as per their
entity size, structure, products and services. It is analyzed that private company are working for
gaining profits as per their size and scope. The size and scope is based on company financial
resources and capital. In this company limited firm having huge number of capital along with
high financial resources that helps in offering more products and services to customers as
compare to sole proprietorship and partnership firm within private sector. On the other hand
public sector organization offered services and products for society benefits and their size is
based on funds that are collected from government to the public for the citizen benefits. In this
voluntary organization size is moderate as they mainly working in one country to provides
offerings for national people welfare.
TASK 2

P3Explain relationship between different functions and how they link to organizational structure
Within a business enterprise there are several departments whose working are directly or
indirectly depend on each other. The dependency is necessary to attain targets on time
efficiently.In terms of Dyson Company, several departments are working that are interrelating
with each other. Some of them are presented below:
 R&D department and purchase department- In this research and development
department is working for examine the market and customers trends so that firm
buys raw material effectively. In this purchase department buying the raw material
as per the requirements of market(Luiz, Ganson and Wennmann, 2019). The
interrelation between these two departments is necessary to produce the quality and
trendy products that attracts customers every time. It also helps in attaining
objectives of business enterprise appropriately.
 HR and marketing department-Marketing department is very essential for
company to gain profitable results by attracting number of people towards
enterprise. In this HR department is working for recruiting and hiring best
candidate who perform their task effectively for company sustainability.
Coordination between these two departments is crucial to get proficient and
productive outcome(Nam and Bao Tram, 2019). In this HR department provide
information to marketing department related to vacant position and marketing
department attract candidate for that job role so that skilled and talented applicant
are hired within a firm.
 Finance and IT department-In an organisation IT department ensures that all
equipments and digital technology are working properly whereas finance
department focus on align the market demand by investing more goods and services
using technical equipments and digital technology. In this coordination between
both departmentsis essential because of getting appropriate result on time and in
time frame. It helps organisation to take decisions effectively and proficiently.
Organisational structure
It refers to those activities which are directed to attain the objectives of a company. These
activities involve rules, regulations, roles that guided the flow of information between different

levels of an organisation(Iglesias and et. al., 2020). Dyson is a leading electrical private company
in UK that follows functional structure which are presented below:
Functional structure defines to that which helps an organisation to organise employees
effectively as per their capability and experience. In terms of Dyson, CEO adopts this structure
that where they grouped the number of employees as per their skills and knowledge. In this
departments are bifurcated as per the actions such as IT, marketing, HR etc.

Figure 1: Dyson, organizational chart with CEO
Analyse advantage and disadvantage of interrelationship between organisational functions and
impact on organisational structure
From above report it is analysed that interrelationship between departments impact
positively and negatively on the functions and structure of anorganisation. In terms of positive

manner interrelation between several departments like HR with Marketing, R&D with purchase
department etc. helps in completes the targets on time. It also develops friendly relation between
the working areas that helps in achieving objectives. On the other hand interrelations also affect
functions and structure as it create conflicts and misunderstanding due to which working of firm
is effective and due to this firm also face delays in achieving aim.
CONCLUSION
From above report it is concluded that business is an essential activity to earn profits and
revenues. This report helps in presenting the several types of business with their size, structure,
scope, vision, purpose which helps in attaining objectives within competitive marketplace. In this
report interrelationship between departments along with organisation structure is presented that
assist in smooth functioning of department. It also maintains decorum within working
environment.
TASK 3

INTRODUCTION
Business refers to an economic activity where numbers of people are working within the
procedure of buying and selling of good and services for generating profits. These activities are
done in the business environment that is dynamic in nature(Hamilton and Webster, 2018). This
report also involves macro and micro factors with their interrelationship along with positive and
negative aspects so that more growth is faced by company.
P4and M3 Identify positive and negative impact of macro environment using pestle analysis
upon business operations
Macro- Environment defines that condition which involves economy of country as a whole
and it mainly impact operations of company. Business organisation has no control on macro
factors due to which examine these factors helps in minimising challenges and maximising
opportunities within market. In terms of Dyson, manager examine macro environment by using
PESTLE analysis that are elaborated below:
Political factor- It refers to that factor which reflected government stability within country, tax
related guidelines, trade restrictions and many more(Uluskan and Godfrey, 2018). In UK
political condition is stable but due to Brexitoccurrence many companies face issues related to
trade in other European countries. In terms of Dyson positive and negative impact can be shown
below:
 Positive impact- Within UK local market political rules and regulations are stable that
helps Dyson to grow and developed within local market.
 Negative impact- Brexit occur affect the operations of Dyson in other European
countries in negative manner. Due to Brexit EU decided to separate the many European
countries from EU that create trade restrictions. This impact company sales, profit and
also production cost.
Economic factor- It is related with purchasing power of customers, inflation rate, employment
rate etc. All these factors impact Dyson business functions in positive and negative manner that
are presented below: