Business and Business Environment: A Comprehensive Report

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BUSINESS AND BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION........................................................................................................................1
LO1........................................................................................................................................... 2
P1 EXPLAIN DIFFERENT TYPES AND PURPOSE OF ORGANIZATIONS AND LEGAL
STRUCTURES.........................................................................................................................2
P2 EXPLAIN THE SIZE AND SCOPE OF A RANGE OF DIFFERENT TYPES OF ORGANIZATIONS.7
LO2......................................................................................................................................... 10
P3 EXPLAIN THE RELATIONSHIP BETWEEN DIFFERENT ORGANIZATIONAL FUNCTIONS AND
HOW THEY LINK TO ORGANIZATIONAL OBJECTIVES AND STRUCTURE..............................10
LO3......................................................................................................................................... 13
P4 IDENTIFY THE POSITIVE AND NEGATIVE IMPACTS THE MACRO ENVIRONMENT HAS
UPON BUSINESS OPERATIONS, SUPPORTED BY SPECIFIC EXAMPLES.................................13
LO4......................................................................................................................................... 16
P5 CONDUCT INTERNAL AND EXTERNAL ANALYSIS OF SPECIFIC ORGANIZATIONS IN ORDER
TO IDENTIFY STRENGTHS AND WEAKNESS.........................................................................16
P6 EXPLAIN HOW STRENGTH AND WEAKNESS INTERRELATE WITH EXTERNAL MACRO
FACTORS.............................................................................................................................19
CONCLUSION.......................................................................................................................... 21
REFERENCES........................................................................................................................... 22
1

INTRODUCTION
Business is a work related to producing, selling and buying of products and services. The
business can be defined as the process of earning income by providing goods and services in
value to money. The environment in which the business is carried out is the business
environment. The business environment is defined as the collection of external and internal
factors that affect the functioning of the business. In this assignment, the learner comes to
know about the business environment impacts on the company, the importance of business
environment and the strategies that will help in analyzing and overcoming the impacts of
the business environment. The learner will also obtain information about different types
and size of business in the business in the world.
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LO1
P1 EXPLAIN DIFFERENT TYPES AND PURPOSE OF ORGANIZATIONS AND LEGAL
STRUCTURES
BUSINESS ENVIRONMENT
The business environment is one of the most significant parts of the business. The factors
that help in business and are included in the business environment are suppliers, media,
competitors, government, economic conditions, customers and investors. All of these
factors play a significant role in business growth and development. The business
environment contributes to providing business opportunities and helps in poses threats.
Business environment plays an important role in the development and implementation of
business strategies for business growth (Suneja, 2017).
TYPES OF ORGANIZATION IN BUSINESS ENVIRONMENT
Private organization
The private organization can be defined as the share of a company's economic system that
is run by companies and individual instead of the government. The main purpose of these
organizations is earning profit with the help of business expansion. The private sector plays
a vital role in the economic growth of the country such as in the UK where the control of the
government sector is less as compared to other countries. This organization works on their
own way of making money and the economy of the country (Button, 2019). One of the best
examples of private organization in the UK is Virgin Atlantic which is a subsidiary of Virgin
Atlantic Limited. The company provides airline services to peoples across the world.
Another private organization in the UK is Dacia which is an Automobile company and a
subsidiary of Renault. The company is responsible for serving commercial vehicles
worldwide (Virgin, 2019).
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Figure 1: Virgin Atlantic Airlines
Source: Virgin, 2019
Purpose-The purpose of the company is changing the business for good along with business
expansion and profit. The company focuses on providing heartfelt services to the customer
that contributes to earning huge profit from the business. Virgin Atlantic is a private
organization of the UK and contributes to enhancing the Economy of the country. The
company runs with the aim of earning profit by adaptation of opportunities and by
enhancement of services. The purpose of the company in providing excellent services to the
passengers for which the company adopts different types of services such as must ride for
premium class and offers priority access, just ride which provides services to general class
along with reliability, Vex which is a courier service and fast ride for the emergency services.
The company is expanding the business more and more for earning profit and for
contribution in the economy of the country as the private sector has the largest contribution
to the improvement of the economy of the country in the UK. The purpose of Dacia
Company is the expansion of business worldwide that contribute to improving the economic
rate of the company as well as of the country. For business expansion, the company needs
to analyze and evaluate the business market (Dacia, 2019).
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Figure 2: Dacia Company
Source: Dacia, 2019
Public organization
The public sector is a part of the economic system of the country which is controlled by the
local, state and national government. In the UK the critical services such as polices
protection, defences services, firefighting, taxation and social programs are covered under
the private sector. The profit earned by the public sector is shared with the government for
the welfare and development of the country. One of the best examples of the public sector
in the UK is Amazon which is an online shopping company. The company is a public sector
company and is responsible for providing online services worldwide. The company has
business expansion in every sector and contributes to the growth and development of the
country and business (Amazon, 2019).
Figure 3: Amazon
Source: Amazon, 2019
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Purpose- Amazon is an online shopping industry that provides online services worldwide.
The purpose of the company is to expand the business more and more and to provide
excellent online services to the customer throughout the world that will help contribute to
the economic development of the country. The profit of the company is shared with the
government of the country for improving the services like defence, police service and social
program. Amazon is a public sector company and has business expansion in many areas
such as books, game studio, web services, internet movies, beauty products and food. The
services will help the company in earning a profit that contributes to the country
development. The company earns a huge profit from online services and plays a vital role in
the economic development of the country (Amazon, 2019).
Voluntary organization
The voluntary organizations are composed of or operate with the help of volunteers which
provide services to countries, groups and individuals. The sectors work for the welfare of the
citizens and country. In these sectors, the organization donates and do charities for the
good fare of people. The organization includes volunteers that contribute to helping poor
people and the country. One of the best examples of voluntary organization in the UK is The
Natures Trust which is responsible for preserving the historical places and heritage of the
country (National, 2019).
Purpose-The natures Trust is a voluntary organization run by the volunteers for the welfare
of the country. The main purpose of the company is to preserve and secure the heritage of
the country for future generation and for the economic growth of the country. The
increment in tourism will enhance the economy of the company. The company preserves
the heritage and historical places through the donation and government shares (National,
2019).
LEGAL STRUCTURE
The legal structure will help in the formation of the business and in the functioning of the
business. The legal structure will help the company in adopting a proper plan for improving
the economy of the country and company. There are four basic types of legal structure that
will help in business development and growth such as Sole proprietorship, partnership,
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corporation & company, and Limited Liability Company. The sole proprietorship is one of the
easiest ways for business setup as it is set up by the individual and does not require
government approval. The partnership is a setup of business includes two or more persons
as co-owners of a business for earning a profit. The partnership is tied with a document
made by partners with the help of a lawyer. The corporation and company is a setup of the
organization by an individual known as stockholders. The company needs to fulfil many legal
formalities for the setup of corporation and companies. The Companies Act, 1956, manages
the company’s affairs and protects the interest of shareholders (Pakroo, 2018).
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P2 EXPLAIN THE SIZE AND SCOPE OF A RANGE OF DIFFERENT TYPES OF
ORGANIZATIONS
SIZE AND SCOPE OF DIFFERENT ORGANIZATION
Size includes a variety of products and business expansion in the world. Different companies
have a different size based on the working and type of business. The scope can be defined
as the area or action that will help the company in expanding the business and in improving
the economic growth of the company. The scope is the area of opportunities that the
company can use for business development and profit. Different organizations have
different size and scope for business development (Mellor, 2018).
PRIVATE ORGANIZATION
The size of the organization includes the area covered by the company for business and the
number of products the company is serving to the customers. Virgin Atlantic is a private
organization that provides airline services to peoples in different countries. The company
has a huge business expansion that includes 5000+ airports, 3000+ airlines, 1600+ suppliers,
800+ airport investors, and 250+ countries in which the company provides the services. The
company has different types of products and services depend on the demands of customers
such as friendly, high quality, entertaining and innovative. The scope of the organization
includes the area of opportunity the company have. The company has a great scope in the
area of business expansion and also has the great opportunity to improve the services as per
the customers' demands that will attract the customers towards the company and
contributes in the business earning. Dacia is an Automobile company and is a subsidiary of
Renault. The company provides automobile services worldwide and is one of the largest
automobile companies in the world. The company has business worldwide and has
approximately 1100 car model that is introduced in the market including sander, Logan,
Duster, Lodgy, and ford. The company has a great opportunity in business expansion all over
the world and also has the opportunity to introduce new vehicles and services that attract
the customers and expand the business with a huge profit. The company has a big
opportunity to compete the competitors with the invention of new features. The innovation
of products and services will help the private organization in business expansion and in
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enhancing the economic rate of the company and country. The companies are not under the
control of the government but impact the economic and growth of the country (Mackintosh
et al., 2016).
PUBLIC ORGANIZATION
Public organizations are those that are run by the government bodies and the profit earned
from the business is used for the welfare of the countries and citizens such as in military,
police services, taxation and social programs. Amazon is one of the public organizations run
for the economic growth of the country. The company provides online shopping to the
customers and has the business expansion in every field such as books, clothing, games,
studios, robotics, and food market. The company has approximately 288 million square feet
of offices, warehouses, stores and data centres. The company is spread-out worldwide and
has approximately 647,500 employees all over the world. The profit earned by the company
is shared with the government of the country for the welfare of the country. The company
has a vast scope in the field of business expansion by increasing the variety of products and
services. The company also has a vital scope in digital marketing as the company can adopt
new technology and services that will help the company in making a good reputation in the
digital world and also attracts the customers towards the company. The public sector plays a
vital role in the economic development of the country and thus it is necessary for the public
sector organization to earn more profit from the business. Amazon has a great scope with
improving the online services that will help the company in reducing the competition with
other competitors. The company needs to analyze and evaluate the demand of the
customer for the business expansion that will help the company in economic growth. The
economic growth of the company directly impacts the economy of the country and thus it
became necessary for the company to earn a huge profit for the country development
(Mackintosh et al., 2016).
VOLUNTARY ORGANIZATION
Voluntary organizations are those that work for the welfare of the country and citizens with
the help of government and other sources. The main motive of this organization is to help
the poor citizens and to develop the country for growth and economy. One of the most
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popular organizations that work for the welfare of the country in the UK is The Natures
Trust. The company plays a vital role in maintaining and preserving the historical places and
heritage of the country for the future generation. The organization has approximately more
than 480 conservation properties that the organization is preserving for the future
generation and also for the enhancement of tourism in the country. The property covers
approximately 71,000 hectares of land across the UK. The organization has a huge scope for
providing the services worldwide with the help of government bodies, donations and
charities form other sources. The organization includes approximately 20,000 volunteers
and has the opportunity to increase the number of members and heritage that will help in
the economic growth of the company. With the maintenance of the heritage and the
company gets the opportunity to enhance the economic rate of the country. The
organization has a great scope in maintaining the gardens, tourist spots, public place and
heritages that will contribute to the development of the country. The huge private
companies and economic development of the country plays an important role in being a
source of income that is used in preserving the places (Mackintosh et al., 2016).
All the type of organization in the country plays a vital role in the economic development of
the country and provides more opportunities for the company for growth and development.
All the organizations such as the private, public and voluntary needs to analyze and evaluate
the scope in the business that improves the performance of the company and also plays a
vital role in the economic development of the country by providing more employment and
more earning (Mackintosh et al., 2016).
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LO2
P3 EXPLAIN THE RELATIONSHIP BETWEEN DIFFERENT ORGANIZATIONAL
FUNCTIONS AND HOW THEY LINK TO ORGANIZATIONAL OBJECTIVES AND
STRUCTURE
ORGANIZATIONAL FUNCTIONS
The relation between different organizational functions and interconnection with the
companies is necessary for gaining improved performance in the business world. There are
different organizational functions on which the company needs to focus on the
development and growth of the company and country. These functions are as follows (Kallio
et al., 2015).
Human resource
Human resource plays an important role in implementing people’s strategy. Virgin Atlantic
Airline adopted the human resources for managing every activity within the organization
that will impact the performance of the company and helps in serving the customers with
better facilities (Kallio et al., 2015).
Marketing
Marketing is the aspects which contribute the company in increasing profit and revenue
with the help of business opportunities in the market. Virgin Atlantic Company enhanced
the earning in the business by improving the market strategy that attracted the customers
towards the services of the company (Kallio et al., 2015).
Finance
Finance department relates to profit and finance management. Virgin Atlantic Airlines
implemented the capital in a useful manner with the help of the finance department for
improving the services that help the company in earning more money in business (Kallio et
al., 2015).
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