Business and Business Environment Report - Assessment of Organizations

This report provides a detailed analysis of the business environment, focusing on public, private, and voluntary organizations. It begins with an introduction to business and its environment, followed by an explanation of different organizational types, including their legal structures, sizes, and scopes, using examples like NHS, Mark & Spencer, and Cancer Research UK. The report explores the relationship between organizational functions such as marketing and human resources and how they link to organizational objectives. It also examines the positive and negative impacts of the macro environment on business operations, and conducts internal and external analyses of specific organizations to identify strengths and weaknesses, and how these interrelate with external macro factors. The report concludes with a summary of the key findings and provides references to support the analysis.

Business and business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain different types and purposes of organisations; public, private and voluntary
sectors and legal structures..........................................................................................................1
P2 Explain the size and scope of a range of different types of organisations.............................2
P3.Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................6
TASK 2............................................................................................................................................7
P4.Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................7
P5. Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses............................................................................................................9
P6 Explain how strengths and weaknesses interrelate with external macro factors.................10
CONCULSION:.............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business is an activity in which an individual do efforts for producing and selling good
and services for a profit and for satisfying society's needs(Business Environment. 2018). On the
other hand, business environment is total of all the external and internal factors which can
influence a business's performance, profitability, and growth. This report is based on public,
private, and voluntary organisations that are NHS, Mark & Spencer and Cancer Research UK.
This report will cover the explanation of different types of organisations with their size and
scope and defining inter relation of the various function and stating positive and negative
influence on macro environment and determining affect of internal and external strengths of
specific business on external macro factors.
TASK 1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures
There are various type of organisation which is operating their activity for completing
their purpose. These all the organisations public, private and voluntary, are different from each
other and they all are conducting their activities for different purpose. The brief explanation of
different organisations and their legal structure are described below:-
 Private organisation:- This kind of organisations can be explained by that which is not
directly controlled and operated by the government (Prajogo, 2016). The main purpose of
this organisations is to earn profit and this sector is controlled by the private individual
and groups. There are various types of private organisations such as sole traders,
partnership, limited company etc. The chosen organisation is Mark & Spencer who is a
multinational retailer which is operating their business in UK. There are explanation of
different types of private organisation and the legal structure of private organisation are
as follow:-
Sole Trader- This business is operated and owned by a single individual who is responsible for
all the loses and profits. In this business the amount of investment is very low.
Partnership- In this type of business several individuals are engage themselves in the one
business operation by following deeds. In this business all partners are agreed to share profits
and loss equally or in relation of the capital invested by them.
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Legal structure- All the private organisation has to follow rules and regulations of the
law according to their business activities. For example, partnership firm is registered in the
partnership act so they have to all the rule and regulation of the act.
Advantage- The main advantage of legal structure is that the liability of shareholders is
limited to their shares.
Disadvantage- They have to follow all the rules and regulations of the government
which might restricted their operational activities.
 Public organisation:- This type of organisations is generally related to the government
in which the organisation is owned and operated only by the government. In any of the
company if 51% is owned by the government then it is considered as a public
organisation. The chosen organisation is NHS which is owned controlled by government
of U.K with the purpose of providing better health services at minimum charge.
Legal structure of public organisation:- All the public organisations is directly
controlled by government and their agencies(Deasy, and et. al., 2016). The Local government
maintains rules and regulation of small area where state government has responsibilities to
maintain compliance of rules and regulation in a boundary of state. The central government
formulates rules and policies of the particular country.
NHS is a public health care who perform duties and follow rules mentioned in Health and
Social care Act, 2012. It is the responsibility of the NHS to provide better health services to the
people of nation and to remove inequalities from the health service.
 Voluntary Organisation- This kind of organisations is defined as a group of individuals
who involves in an agreement for achieving a specific purpose. The main purpose of
these organisations is charity, socio-economic development of rural people etc. In this
report chosen organisation is Cancer Research UK which was established in 2003 with
the purpose of cancer research and for spread awareness among the people.
Legal Structure of Voluntary Organisation- It is categorised into three part which are
Donor, trustee and beneficiaries and all are important to form a trust. This association refers to
group of person who are performing activities to achieve its goals.
Cancer Research UK is needs to take registration from the government under a specified
act( Kolk, 2016). This type of firm is not allowed to earn profit otherwise they will be dissolved
and their capital and assets would be taken by any other voluntary.
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P2 Explain the size and scope of a range of different types of organisations.
There are various type of organisations with the purposes of achieving certain goals and
objectives. The modern corporate world features different type of organisations, each has
established with their own purpose and to meet all the requirement of the society within they are
operate. Here are explained the difference between the small, medium and large businesses.
Basis Large organisation Medium-size
Organisation
Small Organisation
Definition Large organisations
are those who are
operating their
activities more than
one country. M&S is a
largest store as is
serving its customers
from all over the
world(Deasy and et.
al., 2015). This
organisation has no
limit for investing
their capital in their
business.
This kind of
organisations
conducting their
operational activities
in more than one
location in a particular
nation. As bevy, which
is dealing in premium
drinks and snacks in
UK. The Bevy is
considered as medium
size company as it is
serving its guests in
UK only.
Small businesses
operated their
activities in small area
of market so that they
can earn money for
carrying out their daily
activities. Example of
these business is
Austin Frazer, which
is a recruiting
consultancy firm.
Goals and Objectives Goals and objectives
of Marks and Spencer
is to satisfying the
needs of customers.
Bevy's goals and
objectives are related
to achieve competitive
advantage in market.
Austin Frazer is a
small consultancy firm
whose goals and
objectives is to
satisfying the needs of
their clients so that
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growth can be
achieved in
market(Bah and Fang,
2015).
Market and profit
share
Stores of M&S are
situated in across the
world so the company
is able to covered a
great market and profit
share.
The firm is operating
its functions
throughout the UK due
to this, small market
and profit share is
gained by company.
Austin Frazer is a
consultancy firm who
operates its activities
in London(Pearson,
2017). So this
company market and
profit share is less than
the large and medium
organisations.
Growth and
Sustainability
As the M&S operates
its functions globally
so the growth and
sustainability of firm
is higher in the market.
Bevy's performs its
activities throughout
the United Kingdom
due to which growth
and sustainability is
good in marketplace.
This firm is dealing in
international market
though its growth and
sustainability is low
than the M&S and
Bevy's.
Size and scope of the private, public, and voluntary organisations:-
Private organisation:- Mark & Spencer
Mark & Spencer is a multinational retailer company in UK which is dealing in the
clothing, home products, and food products. It is a largest company as it is serving its guests
around all over the world. The M&S is serving its guests in international level with qualified
employees who are working for their to achieve the organisational goals and objectives. At
present time M&S has around 950 stores across the UK in which approx 615 only sell food
products.
Public Organisation- NHS
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The main purpose of NHS is to eliminating infectious disease by providing health
facilities to the people. As NHS is a public organisation so it is conducting their activities for
providing the beneficial to the public( Bocken, Rana and Short, 2015). For this they provides free
eye test, mental healthcare and heart surgery services to the citizens of nation. Moreover,
company has employed various employee for providing free heath services. It has highest
number of staff in public firms which is around 1300000 which defines it has huge scope.
Voluntary Organisation:- Cancer Research UK
The main purpose of this organisation is to reduce the number of deaths because of
cancer. These firms are work on the basis of non-profit and they always follow the rules which
are applied on trust. As it is included in the voluntary organisation so its almost entirely fund
collect by the public from donations, community fundraising, events, and many others(Evans,
and et. al., 2017). It is the world's largest independent cancer research charity and it has almost
40000 regular volunteers.
Differences between franchising, joint ventures and licensing:-
There are various difference in these three terms, some of these difference are described
below:-
Basis Franchising Join ventures Licensing
Meaning Franchising is an
agreement in which
franchisor give
permission to
franchisee to use its
brand name for a fee.
It is an agreement is
which two companies
agreed to provide
resources to each other
for accomplishing
their company's goals.
Licensing is an
agreement in which a
licensor gives the right
to use or produce its
company's property or
product, for royalty.
Registration In the case of
franchising
registration is must.
Registration in join
venture Is depend on
the condition, if it is
formed in a company
that registration is
must other if is formed
as a partnership then
In the licensing
process, registration is
not required.
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registration is not
compulsory(Schaltegg
er, Hansen and
Lüdeke-Freund, 2016).
P3.Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
The functions of the organisations are required to interlinked with each other for
achieving the organisational goals and objectives within a given span of time.
Marketing and human resource departments- These functions are very crucial for
every organisation as the companies are required to perform both the activities simultaneously.
Marketing departments helps the organisations to advertise their products and services in the
market in an most effective manner. Likewise human resource departments also helps the
companies to hire and recruit employees effectively because employees are said to be an assets
of the firm(Ji-fan Ren, and et. al., 2017). These both departments are inter-related as the
marketing departments requires a human body who can perform the activities of marketing. The
sales department of Mark and Spenser is suppose to provide a detail to the HR departments
regarding the skills and knowledge,experience required to carry out the activities of sales. Now it
is the responsibility of HR department to hire the candidates according to the requirements so
that it can increase the level of customer satisfaction and their productivity.
Production and marketing department- These two departments plays a vital role in
the organisation and their inter-relatedness is also essential as marketing departments can not
perform without the production function. The task of production departments is to produce goods
and services according to the requirements of customer and it is the responsibility of the
marketing departments to promote the goods and services produced. Marketing department also
helps the organisation in identifying the current needs and wants of their potential customers.
This will also provide benefit to Mark and Spenser, through this the marketing departments can
properly coordinates with the production departments to carry out their operations smoothly and
can achieve their objectives.
Finance department and Marketing departments- These departments go hand in hand
to perform the task so that they can achieve the organisational goals easily. Marketing
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departments are interlinked to Finance departments as the amount required for carrying out the
activities of promotion of goods and services are financed by the finance departments of the
organisations (Aithal, 2016). Similarly it would help Mark and Spenser by providing sufficient
amount that is required by the company to carry out their activities of advertising, promotions so
that they can attract large customers and can build a strong customer base.
Impact of Inter-relations on organisation structure: As it is discussed already that all
the departments of the organisations are interlinked and perform their function simultaneously to
achieve long term vision of the company. Mark and Spenser is the multinational organisation
that is performing their business activities globally. M&S follow the approach of top to bottom in
order to communicate within the organisation to achieve the objectives whereas the functions of
different department has an impact on organisational objective as each departments have
different roles and responsibilities that are essential for the firm(Fan, Lau and Zhao, 2015).
These departments helps the organisations to formulate their structure in the most efficient
manner.
TASK 2
P4.Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
To study the external environment of organisation it is essential for the organisation to
execute PESTLE analysis so that the business can determine the factors which are influencing
their working-
In relation to Mark & Spencer:-
Political factors: These are the factors which involves government interventions,policies,
rules and regulations. Mark and Spenser needs to follow these rules and regulations established
by government regulatory to sustain in the market.
Positive impact – Mark and Spenser can survive in the UK markets and can earn higher
profit as the government policies over UK does not changes rapidly due to which they can
maintain their sustainability.
Negative impact – Increase and decrease in the rate of taxes will reduce the chances of
growth and opportunity of the organisation.
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Economical factors- These factors describes that how the organisation is working and
what it does and to what extent they are profitable to the company(Al-Saleh and Mahroum,
2015). Mark and Spenser is also affected by this factor .
Positive impact-The increase infrastructure development can provide more transport
links resulting in higher production level and increased distribution of products by M&S .
Negative impact - The reduced investment by the government in the retail industry can
also affect the development of Mark and Spenser.
Social factors-These factors are those which involves customers belief , socio-culture
and their changing preferences. This has also affected the business of Mark and Spenser
positively and negatively.
Positive- As it meets all the ethical changes and ensure smooth trade between suppliers
and customers(Schaltegger, Lüdeke-Freund and Hansen, 2016). Customer perception towards the
products of Mark and Spenser has higher the development of economy.
Negative- The company needs to focus on both local and global market and customers
expectations as it only give preferences to the higher or richer society due to which the local
market remains under developed.
Technological factors- It involves rate of technology innovations and development
which affects the development of markets. Mark and Spenser is also affected by these
technological innovations.
Positive – Advancement in tools and technology to produce the goods of updated quality
has maintained the profitability level of business.
Negative - Customers may shift to other brand if they found the substitutes of better
quality.
Legal factors- Employment laws, health and safety norms, environment act etc. are some
example of legal factor which determines that rules play an crucial role in organisation. For this
manager and officer of organisation analysis the legal formalities that helps M&S to perform
their work smoothly in organisation (Deasy, and et. al., 2015).
Positive – An effective employee retain in the organisation as Mark and Spenser follows
all the act related to employee's protection.
Negative- It is difficult for the organisation to adopt all the rules and regulations in the
organisation.
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Environmental factor- It includes the factors like surroundings, climatic conditions etc.
Mark and Spenser uses all the resources available in order to accomplish organisational goals.
Positive – This provides an opportunity to the business of Mark and Spenser to sell the
product in the market as customers are aware about all environmental factors.
Negative – High level of competition in the market has decrease their performance .
In relation to NHS:-
Political factors: These factors are related to the government interventions, policies,
rules and regulations. NHS needs to follow these rules and regulations for preventing their
organisation from any dispute.
Positive impact – NHS can survive in the UK market for a long time as in the UK
policies are not change very quickly.
Negative impact – Government cut their spending on the healthcare industry is greatly
affected on their growth.
Economical factors- These factors describes about the environmental factors which
includes wages, unemployment, tax rate and so on. These factors can greatly impact the business
activities of NHS which are as follow:-
Positive impact-The increase infrastructure development can improve medical services
and increase the investment in the healthcare industry.
Negative impact – They also impact in a negative way like increasing unemployment
rate and reducing buying power of customers can greatly impact on their business.
Social factors-These factors are those which are related to customers belief, socio-culture
and changing preferences. This has also affected the business of NHS in the both positive and
negative manner:-
Positive- At present situation there is a great change in their expectations and they are
now more demanding so the healthcare industries can get benefits from these changes.
Negative- It becomes essential for organisations to considered the culture of their
customers so they able to avoid beliefs and values but in the case they does not considered all
these they can affect their organisational performance.
Technological factors- These factors related to the technology innovations and
development which affects NHS performance.
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