Business Environment Task 1 Report: Business Structures and Scope

This report provides an overview of the business environment, focusing on different types of organizations and their structures. It begins with an introduction to the business environment and the factors influencing business operations, including internal and external components. The report then compares and contrasts various business organization purposes, including non-profit, for-profit, private, public, and voluntary organizations, detailing their objectives, areas of operation, and legal structures. Furthermore, the report explores the scope and size of different organizations, such as micro, small, medium, and large-scale enterprises, discussing their characteristics, contributions to the economy, and operational scales. The conclusion summarizes the key findings, emphasizing the diversity of business organizations and their roles in enhancing the economy and creating employment opportunities. The report references relevant academic sources to support its analysis.

BUSINEES ENVIRONMENT
TASK 1

2
Table of content
 Introduction
 Different purpose and structure of business organisation
 Scope and size of different organisation
 Conclusion
 References

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Introduction
Business environment is concept which comprises different organisation
and factors which impacts operations. Government, environment,
technology, economic and people are external factors. These are
components which indirectly influence on business activities. Suppliers,
employees, shareholders, competitor and customers are internal
components which directly affect firm.

Management - Chapter 11 4
Different purpose of business organisation
Basis of
Comparison
Non-government organisation Non-profit organisation For profit organisation
Meaning NGOs are firms which are established by
individual to provide appropriate items
and services in according to needs and
demands of people.
NPO are enterprise which are regulated
and organised by executives to design
system and use technologies to gain
income which is reinvested in business.
Companies which are established by
entrepreneur to conduct activities and
generate adequate profit from business.
Area of
Operations
Limited scale of activities Large scale of operations Limited and large scale of activities
Objectives Main motive of NGO is to provide items
and services in respect to requirements of
people; thereby generate adequate profit.
Prime aim of NPO is to promote art,
science and commerce by organising
things and deliver appropriate items in
market.
Main goal of this sector firms is to
execute business activities and generate
adequate revenue from business.

Continued...
Private organisation: This tactic includes companies which are started
and operated by individuals to utilise funds and purchase material,
equipment, land and various other assets.
Purpose of private organisation: These are companies which are
established by entrepreneur with objective of transforming funds to
gain appropriate revenue from business. Unilever is firm which is
providing different variety of products to achieve demands of people
and enhance market position and profitability.
Public organisation: This tactic includes enterprise which are controlled
and managed by government.
Purpose of public organisation: Government organise these firms with
motive of conducting activities for welfare of society.

Continued...
Voluntary: This aspect comprises organisation which are setup by
individuals to develop and improve sections of society which remain
undeveloped. Market problems and difficulties are acknowledges;
thereby conduct business activities effectively.
Purpose of Voluntary organisation: These companies prime objective is to
provide appropriate things to public to solve problems and issues of
society. Individuals require to uplift society by giving items in respect
to potential and capabilities of people.

Legal structure
This tactic defines that every organisation requires functioning in
according to market conditions. Capital determines scope and area of
operations that will be executed by executive to conduct business
activities to accomplish goals and objectives.
Private organisation:
•Partnership
•Sole proprietorship
Public organisation:
•State Government
•Local Government

Scope and size of different organisation
Each organisation differs with each other in respect to size, scope,
objective and structure. Micro, small, medium and large are various
forms of firms which are present in UK to deliver appropriate items
and services in market to accomplish goals and objectives.

Continued...
Micro scale organisation: This sector includes firms which is started and
owned by single person to gain adequate revenue; thereby become
financially secured. Individual’s main motive is to utilise their skills
by transforming money in conducting business activities for maintain
living standards. Such enterprise has less than 5 people as there is
slackness of capital and resources.
Scope: Micro scale organisation is very small, so they contribute in
enhancing livelihood of entrepreneur and not in developing economy.

Continued...
Small scale organisation: This segment includes firms which are
established by businessperson to launch firm to gain adequate revenue.
Market research and survey are technique used by management to
acknowledge market trends and design system accordingly. Nearly 50
employees are employed in firm which restrict scale of operations that
are executed to deliver things in respect to demands of people.
Scope: This sector enterprise large in improving state of economy as they
provide employment opportunities and have capability to enlarge into
medium scale firms. Individuals have ability to take additional money
from institutions to increase market reach and customer base.
.

Continued...
Medium scale organisation: These are firms which have good position
and image in market. Executive have ability and resources to expand
business by opening branches in different countries. This helps them
to increase market reach and customer base which benefit in
enhancing sales and profitability. Approx. 250 members are present in
such enterprise.
Scope: This help in enhancing economy and GDP of UK by establishing
outlet in different countries and increasing export and import which
help government to have adequate funds and monetary benefits.

Continued...
Large scale organisation: These are firms which have outlets established
in different countries. Executive require to establish competitive
advantage to position firm higher than rival firms. Along this, they
even require to sustain market position and reputation. 250 to 500
workforce is available with Unilever which help administration deliver
quality items and varieties to people.
Scope: Management of such firms require to increase varieties and
expand business in other segments to provide people different thing in
respect to their demands and requirements.