BTEC Level 4 Business and Business Environment Unit 1 Report

This report provides an overview of the business environment, exploring different types of organizations, including profit, non-profit, and non-governmental entities, and their characteristics based on size and scope (micro, small, medium, and large). It examines the interrelationships between various organizational functions such as finance, marketing, human resources, and IT, using Dorchester Hotel as a case study. The report also discusses organizational structures, including functional, matrix, and strategic business units, and their roles in achieving business objectives. Furthermore, it outlines global growth and developments of transnational, international, and global organizations. The report concludes by emphasizing the importance of understanding the market climate for effective business operations.

Business and business
environment
TASK 1 and TASK 2

Table of content
 Introduction
 Different types of organizations
 Size and scope of different types of organizations
 Relationship between different organizational functions
 Conclusion
 References

Introduction
Business environment refers as aggregation
of diverse factors that has influences on
situation and business which has impacted
on business positively. This is important for
organisation to focus on such factors and
get optimum solution that helps to maintain
a business effectively. This presentation
based on distinct organizational types and
purposes. Moreover, this presentation
covers interrelationship between functions
in organisation. .

Different types of organizations
The type of organization in business environment are different that depends on
criteria such as scope, size, nature of business, purpose, operation, regulation and
more which helps to maintain the business and increase profitability .

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Difference between profit, not for profit and non government organisation
Basis Profit organisation
(Dorchester Hotel )
Not for profit organisation
(Brilliant Club)
Non-governmental
(Amnesty International)
Definition This means those organisation which are operate
and managing activities for the purpose of making
profits and increasing business performance.
Non profit organisation are those
organisation which are operated for
providing products and services in
order to do welfare of society and
people. Moreover, promote the
nation’s culture.
Non-governmental companies are in independent
form which are established to prvide products,
premises and services with benefits to member.
Purpose The purpose of private organisation is to gain
maximum productivity and market share. The main
purpose of Dorchester hotel is to increase number
of customers and profitability.
The purpose of non profit
organisation is to offer variety of
products and services in order to
make feel better. Brilliant Club’s
purpose is to provide public
commodities as people wants for the
welfare of society.
The purpose of non governmental sector is to promote
specific causes and raise awareness acceptance and
knowledge of people who are living in community.
The purpose of Amnesty international is to
undertake research and action by preventing human
rights.

Size and scope of different types of
organizations
Basis Micro organization Small organization Medium size organization
Definition This means a firm which is operated by less number of
people in order to provide products and services. This
employs 0-10 people and annual turn over is £ 2 million.
Those institution which are operated
by sole proprietor and group of people
that provide employment more than 10
but less than 50 people by making turn
over £ 10 million.
Medium organization are as defined
who are providing employment within
a number of 250 people at different
places and getting turn over around £
50 million.
Example Boss Brewery company , Mantons cards, Castle Hill Fire
protection ltd.
Amnesty international, Airdri etc. are
example of small organization.
Brilliant club, Checkout.com,
Pharmacy 2U etc. are medium
organization in UK.
Purpose The purpose of micro business is to offer products and
services and live daily life.
The purpose of small organization is
to satisfy their customers and grow
their business activity by bringing new
products and services.
The main purpose of medium
organization is to make higher profits,
growing and development by offering
variety of products and services.

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Differences basis Large organisation
(Dorchester Hotel)
Medium sized organisation
(Brilliant Club)
Small organisation
(Boss Brewery Company)
objectives To earn money for living with family. To survive in market by facing
competition and attracting customers.
To increases growth, market share and
expansion of business by bringing new
products and services.
Products and services This is providing craft brewery to customers. This provides services to people by
giving awareness regarding human
rights and protection.
This organization is providing services
that has attracted to customers and
increase profitability.

Cont..
Difference between Small medium and large organization
Basis Small Medium Large
Companies Boss Brewing organisation is small
company
Brilliant Club organisation Dorchester Hotel that is large size
organisation.
Size and scope Boss Brewing company is small in
size that provides services at small
level less number of employees are
working that states ad smaller scope
in market for developing.
The Brillant Club has about 75 staff
employed in various areas for the
execution of welfare policies. This
has immense potential that states
moderate scope for developing
education in the United Kingdom.
The Dorchester Hotel has about
3500 staff involved in operations in
various areas. This has a wide scope
in the global industry. This also
create innovation and technology in
their organisation.
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Cont..
Basis Small Medium Large
Growth share The expected growth
of organisation is
10%.
The growth of such
organisation is 20-
30% that focuses on
improving insights of
people.
The growth share of
large and Dorchester
hotel is 40% who
bring innovation and
customer satisfaction
that retain them.
Market share Boss Brewing
Corporation has
gained restricted
market shares in the
UK, as it is a niche
enterprise that focuses
on serving the
demands of the local
region only.
The Brillant Club has
established 3000
educational
institutions along with
17000 primary
schools in England. In
addition, they have
gained 20% of the
nation's education
sector.
Dorchester Hotel has
gained a substantial
and wider share of
the UK's economy
among other nations
with its premium
facilities.
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 Global growth and developments of transnational, international and global
organisations:
 Transactional organization are those organization which transform the ideas and
thoughts of in a nation state companies that helps to accept the challenges. They
invest amounts in research and development, foreign exchange and central
corporate facility that has global growth.
 International organization are those business which usually import and export
good from other nation and attain higher growth and development by maintaining
domestic and international relationships.

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 Differences among franchising, licensing and joint ventures:
Franchising is considered as commercial organisation which is formed
between two legal companies. In this, one organise give franchise to open
business by creating same business model and process in relation to providing
products and services. For this, it charges royalty fees and given for expanding
business in other area or nation.

Relationship between different organizational
functions
 Organisational function – In business environment, there are different types
of organisation which are running different function in order to maintain the
organisational business objectives. In Dorchester Hotel, different types of
functions are human resource management, customer services, operations,
warehousing, technology, marketing, food department and IT functions that
helps to maintain the business profitability.
 In Dorchester Hotel, functions and their interrelationships with roles and
responsibilities are as defined: