Business and Business Environment: Sector Analysis and Functions

This report provides a detailed analysis of the business and business environment, covering various aspects of organizational structures and functions. The report begins by defining business and the business environment, highlighting the importance of factors such as competitors, distributors, and suppliers. It then delves into the different types and purposes of organizations, including public, private, and voluntary sectors, outlining their legal structures and objectives. The report further explores the size and scope of organizations, differentiating between large, medium, and small businesses and their respective purposes. It examines the interrelationship between organizational functions like marketing, finance, and human resources, and their advantages and disadvantages. The report also analyzes the relationship between organizational functions and how they link to organizational objectives and structures, using the British Red Cross as a case study, and illustrating how marketing, finance, and administration functions contribute to achieving organizational goals within a flat structure. The conclusion summarizes the key findings regarding the different sectors, organizational functions, and their impact on business activities.

Business and Business
Environment

TABLE OF CONTENTS
 INTRODUCTION
 P 1
 P 2
 P 3
 CONCLUSION
 REFERENCES

INTRODUCTION
 Business is the conversion process of skills and materials as per request of customers.
Business organization is a group of people working together for making profit in
collective way. Business environment includes various factors like competitors,
distributors, suppliers etc.
 It can be seen that resources like human, financial and physical are very essential
components of business organization. Generating profit by providing goods and
services is the main purpose of every organization.
 Business environment is sum total of individuals,institutions and other forces that are
outside control of organization but firm still depends upon them as they affects overall
activities and sustainability of business.

P1 Different types and purposes of organisations; public,
private and voluntary sectors and its legal structures
Public Organization:
Public organization are those firms which are owned and operated by the government. The main sources of
finance of public organization are taxes collected from people. These organizations are governed by government
and exist to give services to the citizens. The funding of public services is generated through various methods
consisting taxes, fees, financial transfers from other levels of government.
Purpose of public sector organization
Public sector works for providing important public services like hospitals, schools etc.
To insure mass welfare
To save nation from enemies
Development of industrial sector
It provides smooth supply of product
Legal structure
It is owned by government only.
Its objective is profit and social obligations
Professional competency and productivity is generally moderate.

CONTD....
Private sector organization:
Private sector organization are generally comprised of businesses that are promoted by groups
or individuals who are willing to generate profit. Private organization are generally free from
government.
Purpose of private sector organization
The main purpose of private sector is to maximize profit.
It depicts an essential role in reducing the budgetary deficit of country. It assists government to
restrict public expending.
Legal structure
It is owned by an individual or owner of organization.
Usually works for profit organization.
Professional competency and productivity is generally high.

CONTD...
Voluntary sectors:
These sectors work for giving benefits to the people. They usually consist of organization which
works for the welfare and enrichment of society, without a profit motive. These organizations provide
social services to needy, neglected, old aged, sick and down trodden people. Examples of voluntary
organization includes charities, foundations, social welfare organizations etc.
Purpose of Voluntary Organization
The primary purpose of voluntary organization is welfare of people and society.
They work for welfare of its members, development of nations, solidarity of society and nations
They help those states which are having limited sources and perform their function in a much better
way.
Legal structures
Owned by trustees
Provide services needed by society
May or may not be legal entity.

M 1 Structure, size and scope of organization and link with
objectives
 Flat structure is helping for easy communicating with staff and management. It is also easy to
working together and achieving goals as well as objectives of company.
 With the help of size and scope of organization, increase profitability and achieving objectives of
business.

P2 Size and scope of a range of different types of
organisations.
Criteria Large organization Medium sized
organization Small organization
Purpose The goal of large
company is to
generate revenues.
As compared to
large firm, aim of
medium sized
company is to make
profits.
As opposed to
medium sized firm,
purpose of small
business is to
provide better
products and
services.
Size Greater than or equal to
250 employees and
revenue of 22.8 Million
will be taken as indicator
that is large firms.
Between 50 and 249
employees and
revenues of 5.6 Million
will be taken as signal
that is medium sized
company.
Less than 50
workers and
revenues of less
than 5.6 Million is
small business.

CONTD....
Scope The scope of large
businesses is to
increase future
growth and
development.
As compared to large
firms, scope of medium
sized is to create
opportunities for raising
way of progress.
In contrast, scope of
small firm is to create
employment.

M 2 Advantages and disadvantages of interrelationship
between organizational functions
 Organizational functions are interrelated with objectives and structure. There are various functions such as
marketing, finance, human resources and sales.
 Advantage of marketing function is to identify customer demand and needs. The cons of this activity is to
expand products and services.
 Pros of finance function is to budget forecasting and costs analysis. Disadvantage of this activity is giving fund
of other department.

D 1 Critical analysis of business structures organisational
functions.
 In the critical analysis, marketing and human resources function are
beneficial in flat structure.
 As compare to finance function is not good for organization some
times.

P3 Relationship between different organisational functions
and how they link to organisational objectives and
structure
 Structure of organization is dependent upon the business enterprises because they make design according
to their objectives and functions. British Red Cross is the society which is providing social care, health and
safety, education and other facilities to people.
 The objectives of society is helping for people either rural or urban area. In order to that, there are various
functions of organization which are interrelated with objectives and structure of business. Activities includes
such as follows:
 Marketing function:
 The marketing function of BRC is to increase awareness of people in font of their business. This function is
helping for growth and development of company. Marketing manager is collecting information by finding
different marketplaces.
 After that they are discussing with finance department for funds. They are also consulting with their team
regarding methods and techniques of advertising of products and services. They are also discussing with
human resources division for hiring suitable candidates for marketing.
 Therefore, this function helps for rising of funds for giving the best facilities to people. BRC follow flat
structure of organization.