Business and Business Environment: Types, Functions, and Relationships

This report provides a comprehensive overview of the business environment, focusing on different types of organizations including public, private, and voluntary sectors. It explores their structures, scopes, and sizes, highlighting the distinctions between them. The report delves into the various functions within an organization, such as management, marketing, sales, operations, and production, detailing how each contributes to overall business objectives. Furthermore, it examines the interrelationships between these functions, specifically focusing on how finance, marketing, sales, distribution, purchasing, production, and human resources interact and collaborate to achieve organizational goals. The report uses examples of real-world companies like BP, John Lewis Partnership, and Oxfam to illustrate these concepts, providing practical insights into how these organizations operate within their respective sectors and how their functions are interconnected to ensure success. The report emphasizes the importance of understanding these dynamics for effective business management and achieving desired outcomes.

Business and Business
environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Types of organisations and their structure.............................................................................3
P2 Size and scope of organisations.............................................................................................4
M1...............................................................................................................................................5
D2................................................................................................................................................6
P3 Interrelationship between different functions of an organisation and how they help in
achieving goals and objectives....................................................................................................7
M2 Advantages and disadvantage of interrelationship between Organisational fictions and its
impact up on the organisational Structure...................................................................................8
Conclusion ....................................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business means the human activity like purchase, production, sales of services and goods
that are performed to gain profit or money for organisation. On the other side environment means
the surrounding conditions by political changes, social and economic factors, legal and
technology changes etc. all these environments impact on organisations functions. Business
environment belong with two elements: internal and external environment that affect firm
productivity and profitability. Thus, to achieve business objectives and goals company need to
make their enterprise environment healthy which help in increasing their growth and success in
marketplace. This report defines the various types of organisations and their purposes and also
explain their scope and sizes. It explains the difference between the organisational functions.
TASK 1
P1 Types of organisations and their structure
In the world there are many organisations that run their business through making various
strategies and plan to achieve its goals. Mostly all types of companies are divided into three
stages: private sectors, public sector and voluntary sector industries. The aim to all company's are
not equal and same. Public sector organisations: public sector is governed by government rules and
regulations. This types of company's is operated and owned by government and serve
their services to its citizens. According to this process they are engaged with private
company to supply products and services to people (Johnson, Leenders, and McCue,
2017). There aim is to provide good quality service to customers through completing
their needs and demands in goods. The intention of public sector organisation is to make
money and profit by selling good services things.
For Example: BP is a British international gas and oil organisation. In London and England they
have their headquarters. They are the world famous oil supplier company. Private sector organisation: private sector is self owned organisation which aim to make
money and profit for their business. It was the part of economy, an individual person can
run this firm with their one or more company partners if they want to included it or not.
They are the part of countries that supply good quality things to customers (Popli, and
Rizvi, 2015). They perform their service for making profitability and growth of their
own firm. They are the only one who responsible of profit and loss in their business

production. Sole proprietorship, medium and small size businesses, trade unions and
partnership are the types of private sector companies. For example: Join lewis
partnership is private organisation. It is a retailer company which provide their services
and goods to people. They give furniture, home ware and fashionable clothes products to
people. Voluntary sector organisations: voluntary sector is a union or a group of people's.
Association and society is voluntary companies. It was the unit of individuals who enter
into a compatibility of their work performance. These organisations are performed their
important role for improving or helping people's through support. It was a non profitable
or money making organisation. The aim of these companies is to give benefit to society
by helping and developing their lives styles and health (Dan, 2015). They play their
duties by doing some social activity which developed people education and living
standard better than now. For Example: Oxfam is a charitable organisation, that focused
on women and other people welfare and health. It was a non governed company.
 Legal structure of organisation: it means that every company is responsible for their
organization's liabilities. Owner is responsible for risk at very stage of their businesses.
General partnership, it is an agreement between two or more people who are agreed to
share their financial and profit in their businesses (Butler, and Wilson, 2015.). Sole
partnership, it means that person can run their business individually by managing small
enterprise. They are the only person who operate or manage their enterprise activity.
Another one is limited liability company, there structure is based on hybrid they are not
only liable for all the activity.
P2 Size and scope of organisations
 British is a public limited company. They provide their oil and gas supply services to
country or states levels. Aral, ARCO and Castrol are their subsidiaries. They serve their
services to all around the world within 74,00 employees in the organisation. Company
operate their business activity in 70 countries successfully. Their business is spread in
29,000 square kilometres.
 Join lewis partnership is a private sector organisation, it is owned by UK company which
direct John lewis and partner (Wicker, and et.al., 2014). It's a department store industry,
who established their headquarters in UK. 88,9000 numbers of workers are working in

the organisation. They provide their best food products to people within good and
affordable price. They supply its goods in many states. They produce home ware
products, electronic and fashion products to customer's. In their department stores they
provide good quality goods which are used by people in their daily basic routine like food
and others. They used home delivery service to public that attract customer's towards
them.
 Oxfam is a charitable organisation in voluntary sector, they play their essential role by
providing their welfare service to people who want to live their lives properly. There are
many volunteers are working under the organisation (Mellor, 2018). There health and
safety care services is spread in all around the world. They provide food and shelter to
those people who live their lives in poverty. They give proper health treatment to local
public sector. The aim of this firm is to raise the growth of every person in society
equally without any differences.
All these organisations have a huge in their size through serving their products and services to
customer's and people globally. Some of it are focused on making profit and other are non
profitable. On the other side some organisations are governed by government and operate by
individually. There size and scope are based on their supply service and flexibility.
M1
Private, public and voluntary all the companies have their different management
structure. British public company have different size and scope of their service and products they
can achieve their business objectives through following rules and policies made by the
government. They give their services within good quality goods that other organisation does not
have. Through spreading their business production in the world they can attract more customers
towards their products.
Another organisation is Join lewis partnership they also have different structure of
management and features which is unique and different to the others. Thus, they made those
products which is in demand and needed by customer's. In its department stores they give many
products according to people requirement that help in making profitability. This will impact on
business activity and help in achieving its organisation goals and objectives.
Oxfam is a charitable and non profitable company who worked for making better society
position in the world. It was not dependable or owned by government, they perform their duty

for saving the life of people. The can achieve their purpose of provide health and care service
through connecting more firms, as well as they can collect fund by arranging charitable functions
and events. In this activity some people donate money which help to save other people lives who
need money to balance their life's. They give health care service to society and give them proper
treatment.
D2
Organisation main function is management. According to this function it can manage the
overall activity of the companies. Marketing sales, operation and production, are the functions of
organisations. Marketing sales include promotion and advertisement of their service and
products. This will make their image and position in marketplace, which impact on their business
profitability and growth. Selling and buying is the process of market sales, through selling good
quality goods to people can increase the profit margin and also build organisation image in
business world. Buying and selling activity is based on customer's needs and demands.
Company can manage their operations through performing their high quality service.
Marketing is the best way to communicate with people and tell about its products and service
details. Every organisation has different structures that help in making success by hard work
performance. Successful management operations can build organisation image stronger in
market against to its competitors.
Production is the base of making business more effective and stronger than any other
organisation has. Company need to focused on the process of products production that impact on
profitability and growth of a company. All these activities can achieve business objectives and
goals.
P3 Interrelationship between different functions of an organisation and how they help in
achieving goals and objectives.
Interrelationship between different functions of an organisation and how this relationship
helps in achieving organisational objective can be explained as.
Finance and Marketing: These are important functions of an organisation. These two
departments has always set a collaborations in order to achieve the organisational objectives. A
marketing put their marketing efforts as per the budget allotted by the finance department. As
marketing process is becoming expensive therefore a finance department have to allocate the

funds accordingly(Apăvăloaie., 2014). The budget allotted by the finance department will give a
marketing department a brief what kind markets to target, what kind of customers to target and
how much money to invest on these marketing process. These two departments need to work
together in order to achieve the organisational goals. A finance manager needs to understand the
functions of marketing this will mutually benefit each other and hence this will drive towards the
achievements of goals and objectives for an organisation.
Sales and Marketing: These two directly effect each others performances. As marketing
function is to develop a relationship with the customers and also encourages the leads. Marketing
functions is to expand the customers base and attract more customers towards companies product
and services and after that it depends on the sales department to close the deals made by
marketing department(Botha, Kourie and Snyman, R., 2014). This will help in achieving the
objectives of an organisation smoothly as it involves both marketing function to attract the
customers and sales functions to provide required products and services to fulfil the needs of a
customers.
Sales and Distribution: Every organisations progress depends upon the sales and distributions.
Their relationship focuses on the managing the product for the customers and choosing the
channels of distribution in order to provide their product and services to its customers. Higher the
sales of the company stronger should be the channels of distribution, which will help in
achieving the objectives of an organisation. In order to increase the sales volume for the
company there should be a proper distribution channel for the organisation. This will impact the
growth of an organisation in a positive way.
Purchasing and Production: A purchasing departments function is to provide direct and
indirect materials for the organisation and the level of procurements will decide the production
process of an organisation. This will definitely help in achieving the organisational goals.
Human Resource and Marketing: These two functions are important for the organisation as
marketing function is to build a brand to vast audience in order to increase the sales but the
function of human resource is keep the employees of an organisation engaged to the tasks and
objectives which are to be achieved. Human resource have to make the quality employees
available for the marketing team so that the objectives are achieved properly(Hair Jr, J. F and
et.al., 2015).

Sales and Finance: To achieve success an organisation should have efficient sales and finance
team working together in a best way to achieve the organisational goals. Sales function is to
bring the leads to the organisation by extending the customer base and it is the function of
finance department to to allocate the funds to achieve the profitability of an organisation.
M2 Advantages and disadvantage of interrelationship between Organisational fictions and its
impact up on the organisational Structure.
Marketing and Finance
Advantages Disadvantage
These two departmental functions helps an
organisation in making the better promotions
of its products and services, this will help in
increasing brand value of the company all over
the world with help of efficiency in allocation
of finance(Shenkar, Luo and Chi., 2014). This
will prevent an organisation in shifting
organisational structures.
The main disadvantage of this is that a
marketing process may be too expensive and
finance department have to face challenges in
allocating the funds for marketing process will
create hindrances in achieving the
organisational objectives.
Sales and Marketing
Advantages Disadvantage
Sales and marketing are directly related to
each other higher the marketing process it will
increase the leads in the sales department and
helps in achieving the organisational objectives
and increase the profitability of the company.
A they are totally dependent on each other an
inefficiency in one department will lead to the
inefficiency in another department.
Sales and Distribution
Advantages Disadvantage
Sales and distribution walks in hand in hand
these two functions plays an important part in
increasing the sales and profitability of a
Sales and distribution channels problem in one
functions leads to the problem in another
functional department. What ever will be the

company stronger the sales stronger is the
distribution channels of the company.
sales rate but poor distribution channel will
decrease the sales performance of the company
.
Purchasing and Production
Advantages Disadvantage
Efficiency in the procurements of the
purchasing department will lead to the quality
and timely production of a products and
services
Inefficiency from the purchasing department
will result delay in productions of the company
a will also other functions of the company in
achieving their objectives.
Human Resource and Marketing
Advantages Disadvantage
Proper allocation of employees in the
marketing department will increase the sales
and the customers base for the
company(Wheelen and et.al., 2017). It will
make an organisation structure of a company
more functioning.
Major disadvantage of this relationship is the
that human resource team will not be able to
recruit qualified employee for the marketing
and face the challenges of recruitment due to
limited knowledge of marketing.
Sales and Finance
Advantages Disadvantages
Sales and finance functions helps in achieving
the organisational objectives of a company as
sale department brings the leads and finance
department formulates the budget plan for an
organisation.
A communication gap between a sales and
finance is a disadvantage of this relationship.
Conclusion
It is concludes from the report that an organisation are divided into three parts viz. Public
private and voluntary organisation. This reports also concludes that these organisations have got

a broader scope of bushiness and what kind of organisational structure they follow. This report
concludes that interrelationship between the various organisational functions plays an important
part for achieving the organisational objectives and also how they impact the organisational
structure, but this interrelationship also have some disadvantages which an organisation have to
minimize in order to gain the competitive advantages over its rivalries and is important for the
profitability and smooth functioning of a business.

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