Business and Business Environment: A Comprehensive Report

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BUSINESS AND BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION........................................................................................................................2
TASK1....................................................................................................................................... 3
DIFFERENT TYPES AND PURPOSES OF ORGANIZATIONS; PUBLIC, PRIVATE AND
VOLUNTARY SECTORS AND LEGAL STRUCTURE....................................................................3
THE SIZE AND SCOPE OF A RANGE OF DIFFERENT TYPES OF ORGANIZATION......................7
THE RELATIONSHIP BETWEEN DIFFERENT ORGANIZATIONAL FUNCTIONS AND HOW THEY
LINK TO ORGANIZATIONAL OBJECTIVES AND STRUCTURE...................................................9
CONCLUSION.......................................................................................................................... 12
REFERENCES........................................................................................................................... 13
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INTRODUCTION
Business is systematic and well-organized efforts of the company or individual for producing
and selling goods for satisfaction. The aims and goals of the business vary with the type of
business and business strategy. The atmosphere in which the organization works for
business growth is the business environment. The aim of the business is the satisfaction of
society and customer with the services and products. The assignment will help the learners
in knowing the understanding and background knowledge of business, their function and
business environment. The learner also gains the details about different types, size and
scope of the organization.
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TASK1
DIFFERENT TYPES AND PURPOSES OF ORGANIZATIONS; PUBLIC, PRIVATE
AND VOLUNTARY SECTORS AND LEGAL STRUCTURE
The organization is a group of people that works for the achievement of common purpose
and goals. The different organization works for a different purpose that depends on the type
and size of the organization. The main aim of all the organizations is doing business for
revenue and reputation. The business needs to adopt the business environment and
analysis of the factors that impact the organization’s working cc The different types of the
organization on the basis of aims and goals are as follows-
TYPES OF ORGANIZATION
Private organization
All the organizations that run for the profit and are not under the control of government are
known as a private organization. The private organizations are run by partnership,
individual, corporation and agency and are not operated by the government of the country.
The private organization operates with its own rules and regulations (Biswas, 2015). John
Lewis Partnership (JLP) is a private retail organization run in partnership. The company
operates supermarket with approximately 330 branches in the UK and with more than
61,000 partners. The company was established in 1929 in London, UK with the aim to serve
people with high-quality services and products (JLP, 2019). The other example of a private
sector organization is Vodafone that serves telecommunication services to the world.
Figure 1: John Lewis Partnership
Source: JLP, 2019
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Purpose- John Lewis and Waitrose set up an organization with the purpose of happiness of
the employees and customers through the services, products and rules & regulations. Both
the partners share the responsibility of the organization and the rewards such as profit,
power and knowledge. The company is set up with the aim to avail with revenue and
reputation in the business world. The aim of the Vodafone Company is services excellent
communication services to the world along with huge profit (JLP, 2019).
Public organization
The public sector is a combination of organizations that are ruled and operated by the
government body of the country. The public organization is the part of the economy of the
country that is operated and controlled by the legislation. The funding for the public
organization is earned by different activities such as taxes and fees. The income earned is
used for the country’s development like education, electricity, police services, social services
and waste management (Head and Alford, 2015). Tesco is the best example of a public
organization in the UK. The company is a public sector organization and is the world's third-
biggest retailing company that provides supermarket and superstore services to the world
(Tesco, 2019). Another example of the public organization is Amazon which is an online
shopping company and services the customer with excellent products and services.
Figure 2: Tesco Company
Source: Tesco, 2019
Purpose- the Company serves with excellent and best services to the shoppers that
contribute business profit. The purpose of the Tesco Company is earning revenue and profit
for maintaining and improving the condition of the country and services as the profit earned
from the business is utilized for country growth. Another aim of the company is improved
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services with worldwide business expansion. The aim of the Amazon company is
improvement and expansion in online services so that the profit earned for the business can
be utilized for the development of the country (Tesco, 2019).
Voluntary organization
Voluntary organizations are a specific type of organizations and are known as non-profit
organization such as NGO, civil society organization and third sector organization. The
voluntary organization works for the goodwill of the country and society without any
intention of earning profit and revenues. These organizations are managed and run by the
volunteers that serve the people for welfare and healthy life (Manetti et al., 2018). Oxfam is
an international non-governmental organization that provides services all around the worlds
for reducing poverty and disaster relief (Oxfam, 2019). Another example of Voluntary
organization is the national trust of the UK that contributes to the beauty of the country and
world by preserving the heritage and governmental property.
Figure 3: Oxfam Foundation
Source: Oxfam, 2019
Purpose- Oxfam is a voluntary organization that runs for disaster relief and for reducing the
poverty and impact of poverty on the worlds. The main purpose of the company is curing
the world form these social issues that contribute to the growing economy of the world. The
company collects the fund for working through donations and charity from big organizations
and public funds. The purpose of the national trust organization is the preservation of
heritage and properties for future generation (Oxfam, 2019).
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LEGAL STRUCTURE OF ORGANIZATION
The structure of the organization not only depends on the size and scope of the business but
also depends on the ownership of the business. The legal structure of the organization plays
a vital role in the profit and earnings of the business (Albers et al., 2016). The different
company follows a different legal structure that is as follows-
Unincorporated
Unincorporated companies are those that as adopts the partnership or sole proprietorship.
The organization may be profit or nonprofit that depends on the type of partner and
partnership (Albers et al., 2016).
Corporations
The corporation is the setup of business by more than one company or person. The
organizations are both profit and nonprofit depends on the purpose of the organization.
Most of the corporations are under the control of the government and works for the
countries goodwill (Albers et al., 2016).
Limited liabilities companies
Limited liability companies are a combination of unincorporated organizations and
corporations. The type of organization combines the profit of both types of organization for
gaining more advantage that contributes to the business economy of the country (Albers et
al., 2016).
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THE SIZE AND SCOPE OF A RANGE OF DIFFERENT TYPES OF ORGANIZATION
The size and scope of the organization play an important part in running and earning profit
for the business. The size of the organization depends on the purpose and type of
organization. The different organization has different size and scope that influence the
business operations and earnings (Ang et al., 2015).
PRIVATE ORGANIZATION
The private organization works for profit and business success. John Lewis partnership is a
retail company based in the UK and serves to the customers with the departmental stores.
The company wants to expand the business by including new partners and by opening new
stores to different locations (Means, 2017).
Size
The size of the company depends on the number of employees and annual revenue. John
Lewis partnership is the third largest private company in the UK that serves products like
clothes, cosmetics, furniture, watches and jewellery, and food. The net revenue of the
company is £172 million and the number of employees in the organization is around 83000
(Means, 2017).
Scope
The scope of the company is the opportunities that help the company in business
development and growth. The organization has the opportunity of business development in
other countries of the world with the help of including more and more partners that
contribute to increasing the variety of products (Means, 2017).
PUBLIC ORGANIZATION
The public organization operates for business growth and for the well-being of the country.
Tesco is a retailing company based in the UK and provides a variety of products to the
customers. The company needs business expansion for the economic growth and
development of the company (Denhardt and Denhardt, 2015).
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Size
Tesco is the third largest retailing organization in the world and the subsidiaries all around
the world. The number of employees in the organization is around 450,000 all around the
world and the annual revenue of the organization is approximately 1320 million (Denhardt
and Denhardt, 2015).
Scope
The number of opportunities creates scope for the company. Tesco has the retailing
business and thus has a great scope in expanding the business by increasing the number of
supermarkets and stores across the world. The company can also increase the variety of
products for business expansion that contributes to the wellbeing of the country (Denhardt
and Denhardt, 2015).
VOLUNTARY ORGANIZATION
Voluntary organizations operate for the wellbeing and goodness of society and comity.
Oxfam is an organization that operates for curing the disaster impacts and for the reduction
and removal of poverty from the world (Booth, 2018).
Size
Oxfam is a large size organization that works all around the world with the aim to reduce
poverty from the world. The annual funding that the organization receives for providing
services is around £ 31.7 million. The volunteers in the organization that provides services
for welfare are more than 22,000 (Booth, 2018).
Scope
There are so many opportunities and scope for the Oxfam Company that will help in
expanding the business and on improving the services of the organization. The company has
the opportunity to serve in other fields such as health and care, and education that
contributes to removing and reducing the social issues from the world (Booth, 2018).
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THE RELATIONSHIP BETWEEN DIFFERENT ORGANIZATIONAL FUNCTIONS
AND HOW THEY LINK TO ORGANIZATIONAL OBJECTIVES AND STRUCTURE
ORGANIZATIONAL FUNCTION
The organizational functions are the set of activities that are divided into parts on the basis
of working and need. The working and progress of the business totally depend on
organizational functions. The functions include operations, marketing, human resources,
finance, customer services, warehousing and information and technology. Organizations like
John Lewis Partnership and Tesco needs to implement the organizational function in the
company for the systematic working of all departments and leads business upstairs. The
need and importance of each function of the organization are as follows (Winnubst, 2017).
Operation
Operation department includes the utilization of resources from material, staff, technology
and equipment. The department is responsible for the overall production and
manufacturing of goods and services. Organizations like John Lewis Partnership and Tesco
has to improve the performance of the operation department so that the business works in
a productive way (Winnubst, 2017).
Finance
The finance department is a part of an organization which is responsible for managing the
money of the organization. The work under the finance department is planning, auditing,
accounting and organizing and controlling the company's finance. John Lewis Partnership
needs to improve the working of the finance department for the enhancement of the
services and financial statement of the organization (Winnubst, 2017).
Marketing
The marketing department is responsible for promoting and increasing the sales of the
organization. The marketing department interacts with the customers, community, investor
and prospects for the goal achievement. Tesco and John Lewis Company have to expand the
marketing department as the overall benefits and advantages of the company depend on
the marketing function of the company (Winnubst, 2017).
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Human resource
The Human Resource department handles different functions in the organization such as the
hiring of employees, maintaining office relationships, training of employees and managing
and maintaining employment law. Tesco and John Lewis Partnership need to appoint
Quality employees in the HR department of the organization so that the company hires a
skilled and talented employee for the business (Winnubst, 2017).
Administration
The main responsibility of the administration department is ensuring the performance of
departments within the organization. The department work as an interconnection between
the management and the employee. The department is also responsible for the paperwork
and official documents such as forms, computer work and resolution of issues. Tesco and
John Lewis Partnership Company have to focus on the administrative services of the
company in accordance to maintain the relationship between employee and management
(Winnubst, 2017).
Customer services
Customer service department helps the customers with questions and complaints, providing
information to the customers regarding services and products, take, process and returns the
orders. Any query of the customer is resolved by the customer service department. Tesco
and John Lewis Partnership Company have to improve the services provided to the
customers by the customer service department that help in enhancing the trust and
attraction of the customers towards the company (Winnubst, 2017).
Information and technology
IT department is responsible for bringing innovation and new technologies within the
company for business progress. The activities of the IT department includes designing,
supporting, maintaining the infrastructure of the organization. The Tesco and John Lewis
Partnership companies are retailing companies and thus have to improve the IT services of
the organizations in order to bring innovation and services that help in maintaining the
technical infrastructure of the organizations (Winnubst, 2017).
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TYPES OF ORGANIZATION ON THE BASIS OF SIZE
Small organization
Small business is a private organization that operates individually, partnership and
corporations. The organization has less than 25 employees with annual wages of less than
£1.1 million. The business was set up and started for the fulfilment of basic needs. Most of
the businesses in the UK are small scale business (Allen et al., 2016).
Medium organization
The annual turnover of the medium scale organizations in the UK is around £25.0 million
and includes the staff of less than 250. The medium scale organizations are profit
organization and operate for business progress and advancement. The numbers of medium
size organizations in the UK are less than small business but are greater than large
businesses (Allen et al., 2016).
Large organization
The large size organization includes more than 250 employees and the annual wages of the
company are approximately £25.0 billion. The large organization has business expansion
across the borders and runs the business for business advancement and growth. The
numbers of a large organization in the UK are less but contribute the most in the economic
growth of the country (Allen et al., 2016).
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