Business and Business Environment: A Comprehensive Report

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BUSINESS AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Activity 1.........................................................................................................................................2
Explain different types and purposes of organizations; public, private and voluntary sectors
and legal structures......................................................................................................................2
Explain the size and scope of a range of different types of organizations..................................5
Explain the relationship between different organizational functions and how they link to
organizational objectives and structure.......................................................................................8
Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples..............................................................................11
Conduct internal and external analysis to identify the strengths and weaknesses of chosen
organization...............................................................................................................................15
Explain how strengths and weaknesses interrelate with external macro factors for the chosen
organization...............................................................................................................................17
Conclusion.....................................................................................................................................18
References......................................................................................................................................19

LIST OF FIGURES
Figure 1: Private Sector Organizations legal structure....................................................................3
Figure 2: ASDA functional areas....................................................................................................9
Figure 3: ASDA organizational structure......................................................................................10
Figure 4: PESTLE model...............................................................................................................11

LIST OF TABLES
Table 1: scope and size of the range of the various kinds of organizations....................................5

Introduction
The business environment is subtotal of external as well as internal factors which put a negative
or positive impact on the business. This also includes several factors which affect organizational
ability as well as support in maintaining a strong relationship with the customers. The report in
such context will consider ASDA examples, which is the supermarket chain located mainly in
the UK. Also, the report will consider the various examples of a different organization such as
voluntary private and public sector in terms to understand their purpose systematically. This will
further also assess the different organization size, scope and legal structure. The report also will
illustrate an interrelationship of several functions along with the structure of an organization.
This will further use numerous examples in order to explain the negative as well as a positive
impact of the external macro factors on organization operations. At last, it will explain the
interrelationship of these factors by showing their strength and weakness will be shown in the
last section of the report.
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Activity 1
Explain different types and purposes of organizations; public, private and voluntary sectors and
legal structures.
Private sector organization: This type of organization is owned as well as managed by team or
individuals through appointing the decision makers like directors for improvement in the
business. The main purpose of this sector is to earn maximum profits as well as also acquire a
larger share in the market by providing higher satisfaction in the consumer and also to provide
quality services and products. Morrison is one of the private sector examples in the UK which
operates within a limited sector in retail.
Legal structure: The legal structure of this sector includes the private and public limited
companies, franchises, cooperatives and partnership and sole traders (Bouckaert et al., 2016).
Franchises: Such business is operated mainly under the well-known brand image and name at
the different locations through fulfilling its all legal policy and rules. For example, Mc Donald’s
is operated with numerous of its franchise globally.
Cooperatives: They are formed through individuals with expertise as well as to conduct the
organization activities to earn maximum profits. The main example of cooperative societies is a
cooperative press whose main purpose is to publish the news.
Companies: This includes the private and public both sector which operates with a registration
number that is being offered by the government as well as also liable in following the certain
regulations of employment. The public sector organization is mainly listed on the exchange of
stocks, and no particular member number is fixed in this. The private sector organization, on the
other hand, operates with large members who are mainly responsible for taking care of
stakeholder’s desires.
Sole traders: It is such kinds of business which is governed only by individuals as well as is
responsible mainly for earning the profits. The primary examples of this are Plumbers,
Hairdressers etc.
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Partnership: More than one individual operates it by the partnership, and thus, this is responsible
equally for both profit sharing and loss. The main examples of the partnership are Specify and
Uber.
Figure 1: Private Sector Organizations legal structure
(Source: Angelique, 2016)
Voluntary sector organization: Such organizations are governed partly by the specific country
government. This is also owned by team or individual who is referred generally to as the
community organization in order to serve the people appropriately with the various types of
health as well a related social issue (Salamon and Sokolowski, 2016). One of the main examples
of this sector is Cancer research, which is in the UK.
Legal structure: The legal structure if this includes the non-government organization (NGOs)
and nonprofit organization (NPO). The NGOs is mainly responsible for raising awareness
between the people in a community like health and social awareness. The NOPs while on another
hand is accountable for increasing the people living standard instead of focusing on gaining the
profits.
Public sector organization: These sectors are owned and governed mainly by the government.
This primary sector purpose is to effectively serve the public by providing various services
instead of earning profits. These sectors primarily raise funds through the help of a financial
transfer, taxes from different government levels. The leading example of this sector are National
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health service (NHS) which operates under the government with the supervision, and its primary
purpose is to effectively serve the people through accomplishing their needs and also providing
the health-related services at affordable prices.
Legal structure: The public organization exists often as the limited number of an organization in
which ownership membership is available mainly to the public. The primary example of this
sector is ASDA which operates as the profit gaining organization and is primarily liable to
several problems such as the stock limitation to a public (Ridley and Bull, 2019).
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Explain the size and scope of a range of different types of organizations.
Table 1: scope and size of the range of the various kinds of organizations
Types of
organization
Scope Industry and its
market position
Size Key stakeholders
Public This sector is
operating with the
main scope is to
serve the people
effectively in
order to provide
quality products at
a cheap process.
For examples, the
ASDA is operated
with numerous
opportunities to
explain its
business.
Also, ASDA
acquires the
market share up to
15.3% in the retail
sector of the UK
in the 2017 year.
Also, the
organization has
achieved success
through opening
the numerous
stores all over the
UK.
The ASDA
organization and
its headquarters
are in England as
well as it operates
at around 630
locations in the
2017 year. The
organization
income of
operating is
around £1 billion,
as well as 180,000
employees, are
working in this
organization.
The key
stakeholder of this
sector is
government,
investors,
community
members who are
mainly expecting
the high
investment return.
Private This sector scope
is mainly different
for their different
legal structure.
Like for example,
the Morrison is
operated as a
private
organization, and
it is abided
through several
regulations
(Bromley and
A Morrison
market share is
10.5% in the year
2015 of total
stores of groceries
in the Britain.
Also, this
organization is
operating with
numerous of the
stores in the UK
that is around 500
stores. The gross
revenue of this
organization is
around 1,726.2
cores, and
105,487
employees are
Suppliers,
shareholders,
employees and
consumer are the
main stakeholders
of this sector.
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Meyer, 2017).
This will also
operate with
several
opportunities to
expand their
business at
different
industries and
locations.
working there by
the 2018 year.
Voluntary
organization
This sector is one
of the essential
parts to make the
community
stronger. There
are numerous of
the organization in
the UK, and it
showed the
enhancement in
the community
positively. The
main example of
this sector is
Cancer Research
UK which
operates as the
NPO as well as its
main aim is to
serve the patients
who are suffering
from cancer
through
conducting proper
The UK cancer
research acquires
the higher position
to aware the
public within the
charity band
index.
This organization
is spending the
£644m in recent
years which
include the £393m
in terms to
conduct the
appropriate
research mainly
for the cancer
patient as well as
£30m is raising
the awareness of
cancer (Abzug,
2017). Currently,
it has around
40,000 volunteers.
The main
stakeholders of
these sectors
are partners,
corporate,
fundraiser,
government,
patient, doctors,
volunteer,
employee,
directors etc.
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market research
(Bosco et al.,
2015).
7

Explain the relationship between different organizational functions and how they link to
organizational objectives and structure
This has been determined that ASDA objectives and goals rely mainly on the functions of the
organization, which include the human resource, marketing, finance etc. The most vital
department is marketing department in the retail industry in terms to make a strong link with the
consumer to gain competitive benefits. The employees of ASDA must be aware of its
responsibilities and roles and is mainly responsible for formulating the plan of marketing to
conscious the consumer about its services and products. The marketing plans development needs
to coordinate effectively with functions such as the HR department for qualified resources and
finance for the fiancés.
Also, the department of finance is liable for estimating the budget correctly in order to fulfil each
functional department. ASDA finance department also is linked with the inventory department,
HR department etc. in terms of conducting its operational activities properly and also to fulfil the
objectives and goals (Fainshmidt et al., 2016). For examples, one of the vital functions is the
management of inventory because this is essential functions to fulfil the consumer demand and
needs on a given period in order to gain trust. To store the goods in the retail industry in colossal
quantity, for this, it is essential to have some of the budgets, and the organizational finance
department will allocate it.
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