HNC Business Environment Assignment: Organizational Analysis & Factors

This essay provides an in-depth analysis of the business environment, focusing on the various types of organizations, including public, private, and voluntary sectors, and their respective legal structures. It explores the size and scope of these organizations, examining their objectives and functions within the economy. The essay delves into the relationships between different organizational functions, such as functional, divisional, and matrix structures, and their impact on business operations and employee performance. Furthermore, it examines the positive and negative impacts of the macro environment, utilizing PESTLE analysis to identify political, economic, social, technological, legal, and environmental factors. Internal and external analyses are conducted, including SWOT analysis, to assess an organization's strengths, weaknesses, opportunities, and threats, and to understand how these factors interrelate with the external macro environment. The essay also explores the relationship between the business and the external environment, providing insights into how external factors can affect the business's performance.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1 & LO2......................................................................................................................................1
P1) Different types of organization and legal structure..............................................................1
P2) Size and scope of different types of organization.................................................................2
P3) Relationship between different organization functions........................................................3
LO3 & LO4......................................................................................................................................4
P4) Positive and negative impacts of macro environment..........................................................4
P5) Internal and external analysis of organization......................................................................5
P6) strength and weakness interrelate with external macro factors............................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
There are various types of the organization which are running the economy. Dave is
running the coach business, and he is the sole proprietor of the business. Coaches are running
between the Belfast and Dublin. Dave wants to start the business in the partnership firm or with
the private company. So the essay consist of the types of the organizations and the internal and
external factors which are affecting the business. Company wants to analyze the strength and
weakness of the organization. The different organizations include the public sector companies
and private sector companies. It also includes the non-profit organization and these are formed
for the social cause, to provide the services to the needy ones. Company is conducting the pestle
and swot analyze which consists of the strength and weakness of the company. Macro and micro
environment is affecting the internal and external factors for the company. Interrelations of the
organization is identifying the strength and weakness of the company.
LO1 & LO2
P1) Different types of organization and legal structure
There are various types of organization which is running in the country like public
organization, private organization and voluntary organization. These organizations are affecting
the business environment in the country.
Public sector organizations – Public companies are formed by the sharing of the
investors in the shareholding of the company. These organizations are commenced by the
minimum 7 members and maximum unlimited members in the company. Public companies are
issuing prospectus for collecting the share capital from public. In public companies share holders
can transfer the shares to another person. These organizations are profit oriented organizations
and the company is providing the dividends to the share holders of the company. A public
company is registering the name of the company with limited. Business is managed by the
directors which have to give report to the share holders of the company. There are minimum
seven directors in the company and the company can issue warrants as well. The BBC company
has to call the statutory meeting tin the lifetime of the company (Ji-fan Ren and et.al., 2017.).
Private organization – Private companies are formed by the private investors in the
company. Company needs minimum two members and maximum fifty members in the
organization. Private companies cannot transfer the share to the another person nor these
companies can issue the shares in public. These companies cannot issue the prospectus in public
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for collecting the shares from the public. Private companies are registering the name of the
company with private limited. These are also profit oriented organization, business in managed
by the owners and the directors. Private companies like Auto motive products cannot issue share
warrants and minimum directors needed for the company two directors as well. There is no need
to call the statutory meeting in the private companies (Kozubíková, and et.al., 2017. ).
Voluntary organization – These organizations is formed for the social cause, like non-
profit organization. These organizations are not profit oriented it is formed for the social causes
like for providing medical facilities to the people and non government organization. Charitable
organizations are part of non-profit organization. These organizations are not the part of any
local authority and statutory body. Red cross organizations are not under companies' law, these
organizations have separate laws. It is made to solve the social problems and these organizations
are exempted from the tax as well (Surin, And et.al., 2016. ).
These are the various types of the organization which are running the economy of the
country. These private and public sector companies are generating the profit from the customers.
P2) Size and scope of different types of organization
Basis Public sector
BBC
Private sector
Automotive products
Voluntary
organization
Red cross
size It is the big public
sector company.
net revenue of the
company is 4.889
billion
It is big private sector
company.
It is formed for the
social cause
scope Scope of the public
sector company is
increasing the due to
digital media .
Company is engaged
in the providing the
It is providing the
automotive products to
the customers.
These products were
left by the ex military
officials during World
It is providing the
services to the people
and to needy one.
Scope of the
organization is
increasing due to the
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new to the people
through the process of
the broadcasting and
radio.
War 2. donations and the
charity provided to the
organization.
objectives BBC has the objective
to aware the people
about the activities
which are taking place
in the world.
This organization is
increasing the business
to the web portals
which would enlarge
the scope of the
company.
To provide the
automotive product to
the needed one.
Company aims of
providing the better
qualities of automotive
products to the
customers.
The red cross
organization aims to
provide the services to
the people free of cost
and help the people
which need the
medical emergency.
P3) Relationship between different organization functions
Relationship of the organization is depended on the functions and the organization and
structure of the organization. It consists of the functional structure and divisional structure.
Companies are also adopting the matrix structure which is improving the flexibility in the
company. Relation between the department of the organization must be strong for effective
performance of the company.
Divisional structure include many branches
These organizations structure is formed by the organization which has many branches.
Branches are divided on the basis of the product and the research and development team and
sales and accounting team as well. It has the major draw back of performing the individual
function and which would also create the inefficiency among the employees of the company.
Various functions are carried out by the teams for finalizing the product. It is affecting the
employees of the company which would have negative and the positive impacts on the
performance of the company. It has the major advantage of structure that the branches would
carry the necessary work would perform the business operations.
Matrix structure gives flexibility
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It provides the flexibility to the employees which are working in the company.
Department of the company would also include the finance and the marketing with the
employees of the company and it would also consist of the different functions. It has the major
draw back of becoming the cloudy and conflicts are created in the organization. Through
applying the structure in the organization company would also create the flexibility in the
functions of the business and the company would also create the conflict between the employees
of the company (Calabrese, and et.al., 2018. ).
Functional structure divides the departments
Most of the companies are opting for the functional structure which would be applied in
the companies. Through applying the structure in the company is to separate the departments of
the organization and also the work and performance of the employees in affected. It has power to
clear the line of authority which includes the decision and mission of the task provided. It has the
draw backs of that the company is operating properly with the organization departments and
these departments are not communicating effectively during the work. Due to lack of
communication in the departments work of the company is suffered and the performance of the
employee is suffered.
Through applying these strategies in the organization company would also change the
performance of the company and employees as well. Functional structure is separating the
departments of the organization and the divisional structure is dividing the company into
branches. Matrix structure is providing the flexibility to the business function and also to the
employees of the company.
LO3 & LO4
P4) Positive and negative impacts of macro environment
Macro environment is affecting the business environment in the negative and positive
ways. Lead way consultancy has to do pestle analysis for identifying the impacts of the macro
environment. The firm need to look after the factors which are affecting the business
environment.
Political factors – Elections in the country is affecting the performance of the firm.
These political factors are affecting the employees of the firm and the firm must try to analyse
the negative impacts of the politics on the business environment.
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Economical factors - there is growth in the government projects which are including the
smart city projects. Through these operations the firm is affected and the performance of the
employee is affected.
Social factors – The firm needs to adapt the automatic techniques according to the time
which would increase the sales of the firm. Lead way firm must try to adopt the digital
technologies which are used by the company.
Technological factors - firm must try to adopt the trend which is followed in the country.
Automatic operations must be done and it is the biggest fear of using the technology in the firm.
Legal factors – firm is trying to get out of the legal matters because it is giving the
negative publicity to the firm and it has impact on the performance of the firm. Firm is a global
firm which would hire the employees from the other countries and the employees, so the
company is dealing with visa problems of the employees (Fabus, 2018. ).
Environmental factors – company must try to reduce the green house emissions in the
country and also provide the products which are environment friendly. The product of the firm
must be environment friendly otherwise the government would levy the penalties on the firm.
These macro environment factors are affecting the internal and external environment of
the business which is having the effect on the performance of the company. These political and
economic factors are affecting the sales of the company. Lead way consultancy firm has
analyzed positive and negative impacts of the company.
P5) Internal and external analysis of organization
Lead way consultancy form has to look after the internal and the external factors which
are affecting the firm. These factors are affecting the performance of the employees and the
behavior of the employees. The lead way firm has look after the strength, weakness and the
opportunity and threats.
Strengths – firm has the global delivery model for improvising the products of the firm.
It also has the strong work force which is running the business efficiently. The firm is moving
forward for improvising the products with the innovative techniques which is attracting the
customers of the firm. Employee relations are maintained and the employees are motivated to
improve the work performance. Firm is supporting to the effective marketing strategy and the
branding is also done on large scale. These firm has the ability to fulfill the demand of the
customers efficiently (Quinlan, and et.al., 2019. ).
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Weaknesses - The firm is challenged due toot eh size and the competition in the market
has been increased due to the new entries in the market. The firm is known as a consultancy firm
and it is favoring the large scale projects. The form is also providing the large scale projects
which the firm is unable to complete it, it will create the pressure on the employees of the
company and the employees are also not motivated time to time. These factors are having
negative impacts in the performance of the company. Through the customers know as the
consultancy firm the customers are not attracted to the firm easily(Baker And et.al., 2019).
Opportunities – The lead way firm has various opportunities also which are also
contributing in the growth of the enterprises and the mobility solutions which are helping the
firm. Effective communication and the accurate knowledge is must for the employees of the firm
(Likoko, E. and Kini, J., 2017. I). Firm has the capability to strengthen the performance and
drive the growth of the firm. These factors are helping the company to look after the capabilities
and to achieve the objectives of the firm. The long term goals of the firm is achieved in the basis
of the opportunities which are obtained by the firm (Deasy and et.al., 2016.).
Threats –The lead way firm is volatile and the negative or uncertain and the economic
conditions are not favorable according to the firm. High attrition rate in the competitive market is
a threat for the firm. Cybersecurity is important in the firm which will lower the risk of breach of
data from the computers in the firm. Data of the firm must not breach because it will risk the
details of the employees and the data of the company. High security soft wares must be used by
the company for fulfilling the objectives of the company (Prajogo, 2016.).
Through following the strength and weakness of the firm, and the firm would also know
the strength and weakness which would help the firm to fulfill the long term goals and the
opportunities and the threats would be analyzed the firm would look in to the factors which are
using the strengths and opportunities for the firm and improve the weakness and the threats of
the firm (Erasmus, and et.al., 2016. ).
P6) strength and weakness interrelate with external macro factors
Lead way consultancy firm is having the impacts on the external macro factors which are
affecting the work for the relations between the external and internal factors are shown below
(Bah and Fang, 2015).
Basis Internal strengths
Effective branding .
Internal weaknesses
Challenges and barriers.
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Marketing strategy.
Research and innovation.
Effective relationship with the
employees.
Favors large scale projects.
External opportunities
Growth of the firm.
Effective communication
strategies.
Strengthen the capabilities
and move towards the
growth.
Strength and opportunities
Firm is using the opportunities
for growth and development
which would also increase the
communication between the
employees and the between the
employers as well. Products are
improvising in the firm which
would lead to the growth of the
firm in the market and the firm
would strengthen the capabilities
and growth of the company
(Kozubíková and et.al., 2017.).
Weakness and opportunities
The firm is using the weakness
and the opportunities of the
firm which would have impact
on the performance of the
firm. Through accepting the
large scale projects company
would not strengthen the
capability and the form would
lose the goodwill in the market
as well.
External threats
Competition in the market.
Cybersecurity and high risk.
Uncertain economic
conditions.
Strength and opportunities
Effective branding and effective
communication is working for
the improvising the products
which would use the
opportunities of the market.
Through strengthening the
innovation in the firm would
overcome the threat of
Weakness and threats
Competition in the market is hr
challenge for the firm to fight
with the innovative products
and the firm would also
improvise the product
according to the need of the
customers. Competitors in the
market is using the threats and
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cybersecurity and the firm is
analyzing the factors which are
working for it.
the weakness against the firm
which would be overcomed by
the using the straight and the
opportunities of the firm.
The firm lead way is implementing the strategies to overcome the threats and the
weakness of the firm which is used by the competitors in the market. These weaknesses in the
market could be overcomed by implementing the strength and weakness of the firm. The firm
must look after the uncertain economic conditions which are not favorable for the conditions of
the firm (Ahokangas, and et.al., 2016.).
CONCLUSION
The business environment includes types of the organization which are run by the public
and the private sectors companies. These companies are playing their major role in running the
economy which would also provide the help to the increase the national income of the country as
well. The company has to look after the swot analyses and the firm is also after the pestle
analysis which are proved by the firm for fulfilling the factors of the firm. The business
environment is affected by the strength and the weakness of the form. These firm has to look the
economical and sociological factors which are to be analyses by the firm. The firm is using the
strategies which have an impact on the work of the firm and the performance of the employees as
well. The business environment consists of the plans and the strategies which bare to be
implemented in the organization. Public sectors companies are using the word limited with the
company and the private sector companies are using the word private limited while registration.
Macro environment has an impact on the business environment because oft hos having the effect
on the performance of the company.
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REFERENCES
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Channels. Edward Elgar Publishing.
Deasy, S. and et.al., 2016. Controlling use of a business environment on a mobile device. U.S.
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Erasmus, B. amd et.al., 2016. Introduction to business management. Oxford University Press
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Evans, S. and et.al., 2017. Business model innovation for sustainability: Towards a unified
perspective for creation of sustainable business models. Business Strategy and the
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Fabus, M., 2018. BUSINESS ENVIRONMENT ANALYSIS BASED ON THE GLOBAL
COMPETITIVENESS INDEX (GCI) AND DOING BUSINESS (DB): CASE STUDY
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opinion in environmental sustainability.24. pp.84-88.
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Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics.171.
pp.241-249.
Quinlan, C. and et.al., 2019. Business research methods. South Western Cengage.
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Business Performance Of SME Manufacturing Firms In Malaysia: Analysing The
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corporate citizenship(pp. 83-103). Routledge.
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