Business and the Business Environment: Sector Analysis and Objectives

This report provides an in-depth analysis of the business environment, focusing on the purpose and legal structures of public, private, and voluntary organizations, using examples like NHS, Starbucks, and Save the Children. It examines the size and scope of these organizations, comparing micro, small, medium, and large enterprises. The report also explores the relationships between different organizational objectives and structures, with a focus on functions like HR, marketing, IT, finance, production, and research and development. Finally, it touches upon the impact of the macro-environment on businesses, offering a comprehensive overview of key business concepts and their practical applications. This report is available on Desklib, a platform for AI-powered study tools.

Business and the
Business Environment

Table of Contents
INTRODUCTION................................................................................................................................3
P1 Purpose and Legal Structure of Organization -Public, Private & Voluntary..............................3
P2 Size and Scope of a range of various types of organization.......................................................5
P3 Relationship Between Different Organizational Objectives & Structure...................................6
TASK 3 ................................................................................................................................................8
P4 Recognize the positive and negative affect of macro-environment on Dyson...........................8

INTRODUCTION
Business refers to a financial entity that regulates various activities in its given marketplace
with an only objective to create money. It is being divided into various department which regulates
effective working of the firm in its respective market of operation. Various strategies and plans are
being formulated in the business firm, managers of the firm regulates various activities in a business
firm that ensures effective growth of the firm with completion of social as well as operational
objectives of the firm. However with presence of various uncertainties and competition in given
market of operation of the business firm, it makes difficult to managers and leaders of the firm to
develop and implement various strategies and plans that ensures effective growth of the firm and
also provides better guide to the business firm for attainment of various objectives and goals of the
business firm. The present report will highlight operational working of various firm such as
Starbucks, NHS and Save the child. It will evaluate various operational strategies undertaken in the
operational firm that regulated effective working of the firm in its present working environment and
also evaluate effective working of the firm with respect to various uncertainties and competition in
given operational working environment of the business firm. With addition to that, internal as well
as external analyses of the firm is also being conducted in the operational firm in order to determine
firm's core strengths as well as weaknesses and also is guided with future opportunities and threats
of the respective firms in given operational environment of the business firm.
P1 Purpose and Legal Structure of Organization -Public, Private & Voluntary
Every organization has a clear mission and legal structure that demonstrate organization's
applicability and motivation for being founded. Every company has its own mission and legal
framework. The following sections address the function and legal framework of public, private and
voluntary companies-
Public Sector Organization
The government has power over the public sector entities. In comparison to other
organizations, government is more active in entire public sector. All laws, acts, and procedures
established by government are followed by public organizations.
Example – NHS
Purpose
The primary goal of any public-sector enterprise is to maximize wealth as well as profit.
Public institutions work for betterment of society as well as the development of the region.
Legal Structure

Central Government : UK's government controls and rules public sector, which is itself
regulated and governed by central government. Government's primary duty is to collect
funds from country's citizens and use them for people's welfare.State Government : Public sector entities are created for specific locations, and all these
organizations are often managed and supervised by the nation's central govt.
Local Government : Municipal corporations and other organisations are examples of
entities governed by regional as well as common authoritative citizens. These companies
collect taxes and use them to provide items and services to general public.
Private Sector Organisations
Individuals and groups of 2 or more persons track and manage private sector organizations.
The government's presence in such types of organizations is minimal, and the primary goal of these
organizations is to increase profits and revenues.
Example: Starbucks
Purpose
The primary goal of these organizations is to generate more profit through creative and
successful ideas that improve people's lives. The key goal of these organizations is to maximize
employee performance so that company's productivity rises in marketplace.
Legal StructureSole Proprietorship : It is part of the fundamental legal system of private companies.
Private corporations are overseen by a single individual who is solely accountable for all
corporate operations in order to increase sales.
Partnership : In the United Kingdom, the majority of private companies are managed as
partnerships. Partnerships are often established between private sector entities Two or
even more partners may function together to achieve organizational objectives in partnership
regulatory framework Apart from that, both partners bear the same benefit and loss, as well
as the same obligations.
Companies : Companies exist as both a legal body as well as perceptual succession,
which means that organization's owner would come or leave as well as switch, but the
corporation will continue to exist indefinitely.
Voluntary Sector Organization
These entities are formed by a group of people who work together to achieve a common
goal. These organizations work to improve the health of the general public and provide programs
that benefit society.
Example : Save the Children
Purpose

The primary goal of entire voluntary sector entity is to function for the benefit of community
in order to aid in development of nation. The primary goal of these organizations is to benefit the
nation 's population Non-profit entities are known as voluntary organizations.
Legal structureUnincorporated Association : Officials and teams are in charge of monitoring and
controlling voluntary sector. Without profit motive, teams of individuals and organisations
work to serve society.
Trust and Charity : The primary goal of these entities is to raise funds via charity as well
as trust, allowing them to conveniently swerve for people. A trust document is useful for
providing financial assistance to those who are in requirement.
P2 Size and Scope of a range of various types of organization.
Throughout the United Kingdom, there are also several different categories of organisations,
including micro, mini, medium, and massive. There are still some aspects that all forms of
organisations have in common, which are addressed below:
Micro-Enterprises
In Micro Organizations, a total of ten employees will fulfil their duties, and the micro
companies' entire turnover is even less than £2 million.
Organizations that are small does have 10 to 50 employees will operate at the same time, and the
annual amount of that same small organisations is less under £10 million.
Medium-sized businesses
In Medium Organisations, 50 to 50 employees will work collectively, as well as the micro
companies' actual turnover for the year is below than £50 million.
Large Corporations:
In big companies, more than 250 employees will do their jobs, and small firms have a yearly
revenue of even more than £50 million.
Organizational size with reach (public, private, and non-profit)
The following are also the dimensions and scopes of state, corporate and non-profit organizations:
In the context of public company, NHS have been discussed with its crucial elements of business:
Size: The NHS employs 1.3 million people, with 112 thousand physicians and 289 thousand
nurses.
Scope: The aim is to provide the best support to their clients. Conduct several programs to
assist and educate vulnerable individuals and families, as well as to raise understanding of health
supports and treatment.
Program / service: The NHS offers a variety of health-related programs and resources,
including healthcare services, psychological health, as well as other medical diagnostic services.

Private Organization – Starbucks
This is one of leading company of America which is famous for variety of coffee and
relevant products. They didn't expect Starbucks to become a café serving cappuccinos and
espressos, but rather a coffee equipment supplies retailer. Employees were trained in consumer
advertising techniques, and postcards were created to help consumers understand more about the
company's items. Size: The size company is very large as there are 31256 store of Starbucks all over the
world in till 2019.Scope: To offer satisfying goods and services to citizens of the world and other
international nations in order for the company’s business to be maintained and its market
valuation to rise above that of its rivals.
Product/ service: Starbucks stores sell refreshments, thought the entire coffee, VIA (micro
ground instant coffee), caffeine, espresso latte, full- and loose-leaf teas, include Safeway tea
options, Fresh Juice juices, Caramel macchiato soft drinks, La Boulange baked goods, and
foods also including sandwiches.
Voluntary Organization – Save the Children
Save the Children is a well-known charitable based non-profit organisation that was founded
in 1919. This contributes to the betterment of children's lives by providing them with decent
education, nutrition, and healthcare. This agency provides assistance in the event of a natural
catastrophe, a conflict, or other issues. Size: Currently, 24000 men are needed in even more than 120 countries. To save
Childhood has 16000 staff worldwide, with 8000 employees working by 29 national
members.
Scope: That would save and better the futures of youngsters so how they can experience a
safe and fruitful career with access to adequate schooling, education, and medical care.
 Product/service: The company mainly provides the services for the welfare and
development of child in different society.
P3 Relationship Between Different Organizational Objectives & Structure
Every organisation need to pay more attention in manpower and working operations which
can help to maintain the each and every activities of the organisation. It is important to focus on the
organisation structure so that manager can systematically regulate each and every task. Basically
organisational structure is a strategic framework that can provide an systematic guideline which are
mandatory to follow every employees so that they can effectively accomplish their day to day
target. Starbucks manager mainly concerned about their organisational structure so that they can

effectively conduct all the operations and it make easily for the manager to deal with the employees
and workers. With the help of organisational structure, it will make easily to identify the activities
of the employees which can help to take the appropriate decision for the betterment of the
organisation. Manage of the Starbucks is responsible to obtain the organisational objectives.
Organisational functions are playing the significant role to maintain the all operation within an
organisation. Starbucks manager can take care about all the manpower related activities and follow
all the functions which can help to manage the effectiveness of the employees and improve their
productivity. There are various function of the organisation such as marketing, HR , finance, IT,
production and research & development. It is analysed that all the functions of the organisation are
interrelate and help to achieve the organisational objectives that are discussed below-
HR & Marketing Function
For the development of the organisation, every function are necessary. Human resource also
considered the most essential function of the organisation which can help to recruit high potential
and talented employees so that can retain in the organisation for longer duration and improve the
performance and productivity of the organisation. HR department of the Starbucks also connected
with the marketing department and HR manage of the organisation is responsible to hire the
talented and skilled employees for the marketing department and marketing department also help to
promote the job applications so that interested candidate can apply easily so both function are
interrelated.
IT & Financial function
IT department are also play a prominent role in the success of the organisation and also
provide the easy access of the technology so that employees and customers both can use technology
to purchase and deliver the product and services. IT department of the Starbucks also more focus on
the technology and also use advance technology so that they can easily get the customer satisfaction
and all the employees and easily communicate with the customers and customers also ask their
doubts and confusion. It department also correlated with the financial department of the Starbucks ,
financial department prepare the budget for the IT department and also consider the cost and margin
so that IT department easily consider their expenses and address the requirement of the funds.
Production & Research and development Function
Production department of the organisation mainly concerned about the organisation products and it
is important for the organisation to focus on their products and services so that they can easily
provide the high quality services to the customers. Production department of the Starbucks also
related to the research and development department . R & D department can help to conduct the
market research which can help to identify the customers acquirements so that manager can do
some modification according to their preferences.

TASK 3
P4 Recognize the positive and negative affect of macro-environment on Dyson
In order to identify and evaluate positive as well as negative factors present in macro-
environment of respective business firm, deep study on its internal affairs and operational
environment of the firm is to be regulated. With the help of McKinsey 7s framework respective
company can ensure its better growth in given region of operations.
McKinsey 7s Framework
This model proves to be a helpful and the most effective model to management department
of Dyson, as it guides better functioning of the firm and also promotes effective working of an
employee within its given working structure. By following this approach managers of the firm are
able to evaluate and ensure better performances of respective employee or staffs working in the
business firm. In the model being 7S is the combination of hard and soft “S” in which 3 S come
under hard S and 4 S are coming under soft S. the 7 S of this model re given below:
 Strategy: Dyson company design a good strategy which maintain the competition level
and give the competitive advantages of the company.
 Structure : Through good organizational structure, Dyson company easily determine that
structure guidelines to the employees and set proper structure that employees need to report
their leaders and all the leaders need to report to the superiors employees.
 System : Dyson company follow a effective organizational system so that employees
efficiently connect with other employees and perform all the activities.
 Shared value : This is also known as “ superordinate goals” when this model found then
this is considered the core value of the organization (Peral, Maté and Marco, 2017).
 Style :Dyson company adopt the specific style of leadership.
 Staff :Dyson company appoint those employees which have actual capabilities to do their
work.
 Skills : Dyson company analysed the actual key skills of the employees and their
competencies.
Positive and negative effect of macro-environment on Dyson
For most in the large-scale climate, a number of risk factors consistently suggest that more
experiments appear important. He is in partnership for the bosses of the luggage as a fit hero over
the owners. Throughout our assessment of the likelihood of assertiveness, we need to demonstrate

that the management society is aware of the similar highs and lows of the large-scale climate. At the
same time, frustration in preparing these lines can lead to exchanges gaining any economic
advantage. That the boundary is worn fundamentally and by the coordination of his lifestyle is
unrecognizable. In addition, PESTLE currently represents Political, Economic, Social,
Technological, Logical and Environmental.
Political: Many political variations ensure the impact of business exchange. It comes close to or
follows the idea of the Metro Bank's flagship to the legislative reaction close to the monetary
developments. It can also exacerbate the problem of danger and stiffness. As the public authority
makes motions and applies established principles, Metro Bank initiates action plans that should
unduly influence the course of legal action in which organizations develop. well in any case going
debilitating.
Economic: Economic variables are made up of external factors in the business market despite the
broader economy affecting businesses. The progress of the articles differs from the external
components contained in the corporate objectives plans.
Socio-cultural factors
Socio-economic components characterize the socio-economy as more characterized by populations
and how they continue to depend on prejudices and characteristics. Different social orders and
social encounters are represented by different needs, which are constantly based on a set of basic
beliefs and prejudices.
Associations regularly have a collective vision, which goes hand in hand with the principle of
leadership and common beliefs. Determine how people in such companies shop and what they
decide to spend their money on. Businesses need to focus on socio-social variables, especially when
moving into new business sectors.
Technological Factors
The innovative elements concern the creation of new developments and the way they shape objects,
the development of objects and access to new market openings. A great picture of strong tactical
power today is isolated letters.
Almost everyone on the planet prefers a mobile phone, tablet or PC that can be connected to the
internet quickly and efficiently. It has a profound effect on people and the social order and the
ability to isolate vulnerable groups.
The critical evaluation of the various initiatives and situations is fundamental in monetary choices.
Assessment must study several variables with a large-scale location just like small-scale climate.
Money management; a particular area of general administration is usually affected by a large-scale
situation. We have to be content with various options marked by money; these options include

capital planning, capital raising and working capital options.
Capital planning works with business options, capital planning addresses options that identify with
a variety of funding sources, and working capital evaluates the day-to-day needs of the business.
In making these choices, one must understand the importance of natural powers. As there is no
single factor influencing the large scale climate of the Macro Environment Decision, there still
exists a diverse set of powers such as political, legitimate, practical, social, innovative and so on,
together. Evaluate the currency option requirements of these variables.

CONCLUSION
Furthermore, it should update itself with various changes taking place across the planet. We live in
an era of globalization where nothing is stable and where data innovation has allowed news and
data from the world just seconds away. The world is becoming a level playing field where there is
public danger as well as motivation. Apparently, "Subprime Crisis" has taken a difficult time for
almost the whole world. To assess the various main constraints, it is important to know the
framework and the cycles of the country that make up the economy. For example, a country's
currency settlement that plays an important role in determining the currency of choice. Awareness
of a monetary climate helps us see how essential it is or work with the implementation of options.
The financial situation affects a variety of middle-class people, just like administrative agencies.

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