Business Environment: Types, Scope and Impact Analysis

This report provides an overview of the business and business environment, focusing on the types of organizations (public, private, and voluntary sectors), their purposes, and their scope and size. It examines the internal and external environments of an organization, including the impact of internal factors on external factors. The report links organizational functions with objectives, using Amazon as an example of a private sector company managing its capital efficiently through a functional structure. It also discusses the pros and cons of the macro environment on organizations, highlighting political unrest, pressure groups, and currency rate changes. The report concludes with an analysis of the interrelation between macro and micro environmental factors, referencing Amazon's challenges with political instability and providing a reference list of relevant academic sources.

BUSINESS AND BUSINESS
ENVIRONMENT

INTRODUCTION
 Types of organisation
 Business scope and size of organisations
 External as well as internal environment
of an organisation.
 Impact of internal factors over external
factors.

TYPES OF ORGANISATION
• Public sector organisation
• Private sector organisation
• Voluntary sector organisation

PURPOSES OF ORGANISATION
• Purposes of Public sector
• Purposes of Private sector
• Purposes of Voluntary sector

PURPOSES OF PUBLIC SECTOR
 The main objective of public sector
organisations is to give maximum value to
public.
 Public sector organisation in UK are
further divided into categories such as
management and political.

PRIVATE SECTOR ORGANISATION
 Private sector can be classified into
partnership, sole proprietors and large
multinational.
 The shareholders have a limited liability
for that organisation's debt.

VOLUNTARY SECTOR
 The purpose of non-profitable
organisation is to provide social services
to people.
 This type of organisation had to give part
of their profit to government otherwise it
may result in legal actions.

SCOPE AND SIZE OF PRIVATE, PUBLIC AND
VOLUNTARY ORGANISATIONS
• Increasing business opportunities have
resulted in employment generation in the
private sector.
• Voluntary sector have a scope to improve
the social conditions of the people.

SIZE OF BUSINESS
 A firm especially private is solely
dependent upon manger’s skill.
 Nature of a business could also put
impact over a firm by determining type of
business.

LINKING ORGANIZATIONAL FUNCTIONS
WITH OBJECTIVES
 The organisational function refers to task
that are completed by different
departments.
 Communication is to be made an
important part for achieving integration
between functions and objectives.

CONTINUED…
• A private sector like Amazon has to
manage their capital in an efficient
manner
• Amazon maintains a functional structure
and this structure is helping them to
reach to a wide range of customers.

PROS AND CONS OF MACRO
ENVIRONMENT OVER AN ORGANISATION
 Amazon is not only suffering due to
political unrest but also due to pressure
groups.
 A change in currency rates will going to
reduce their sales. It might also result in
low profitability of the organisation.