Report on Business Environment, Organization Types, and Functions

This report provides a comprehensive analysis of the business environment, focusing on various types of business organizations, including sole traders, partnerships, public and private companies, and voluntary organizations. It examines their size, scope, legal structures, and objectives, using examples like Merrill Lynch, BBC, and Save the Children. The report also delves into organizational functions such as marketing, human resource management (HRM), and finance, exploring their interrelationships and how they contribute to achieving organizational objectives. Furthermore, it discusses different organizational structures, such as divisional and line structures, highlighting their impact on business operations and decision-making. The report concludes by emphasizing the significance of the business environment for business success.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Different types of business organization................................................................................1
P2. Size and scope of different types of organisations................................................................3
Task 2...............................................................................................................................................4
P3 Organisational function and their link to organisational objectives and structure.................4
CONCLUSION................................................................................................................................6
REFERENCE...................................................................................................................................7

INTRODUCTION
Business environment refers as collection of individual people, group of people and
business organization which may or may not be control under the entity. Every business concern
need to focus on needs and wants of person as well as environment in order to achieve goals and
objectives (Zur Muehlen and Shapiro, 2015). It impacts on business environment positively and
negatively. To understand the concept of business environment and how it impacts on business
Merrill Lynch has been taken that was founded in 1914. It provides investment management
services to its customers and run business successfully. This report emphasis on size, scope and
purpose of different types of organization. Legal structure and objectives of such organization
and interrelationship between function of a business organization (Uhl and Gollenia, 2016).
Task 1
P1 Different types of business organization
Organization consider different types of units which is established by business person to
meet with objectives by competing task. Organization mainly focused on needs of customers
then make efforts to produce that kind of products and services. Every business organization
have different size and scope that helps to complete goals in specified period. The different types
of organization involves sole trader, partnership, public, private and voluntary that deals in
variety of products and services in order to attain goals.
Sole trader: This means a business which is run by single person by making business
decision is consider as sole trader. This sector is focused and manage by a person who make
plans and implement them in order to achieve goals. For instance, Planet of the grapes that is
sole trader of wine and spirits. It run its business by making single business decision (Sole trader,
2019).
Purpose: The main purpose of Planet of the grapes is to sale its maximum products in
London and make profit. This also wanted to expand business by running business activities in
London market in order to achieve objectives.
Legal structure: There is no legal structure of any sole trader because it is liable for all
income and debt arises due while running a business. Therefore, Planet of the grapes is not
following any legal structure.
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Partnership: When two or more person are working together to achieve common goals
is consider as partnership. It helps to complete goals and objectives with the help to partner and
maintain the productivity. John Lewis & partners are the partner who works together and provide
good quality of products and services to its customer for generating more profits ( Grigore and
Drăgan, 2015).
Legal structure: It involves corporation, limited liability structure and sharing ratio
liability structure to run business. John and Lewis is following sharing ratio legal structure that
helps to make more profits.
Purpose: The purpose of John Lewis is the happiness of all its members by satisfying
them. The partners of John Lewis deals in variety of products in order to maintain higher profits
and sharing in partners.
Public: A company who is registered under the rules and regulation of government and
also follows government policy is considered as public company. In this type of company shares
are freely traded publicly and arrange capital from public in order to provide good products.
BBC is is public company that run its business by providing public services. Its headquarter in
London that provides news to people and increase their knowledge (Cepel and et.al., 2018).
Legal structure: Public sector includes general government, local government, state
government and central government legal structure. BBC is following central government legal
structure that give permission to run its channel and provide news.
Purpose: To provide high quality news, factual programming to engage and current
affairs to its audience in important current events and ideas.
Private: A company that is owned by privately and no interference of government is
required to run its business is consider as public company. In this company capital is arranged
from relatives, family, assets, personal loan and friends in order to complete task and make
profitability. Merrill Lynch is a private organization that is American investing and wealth
management provides different services to its customers (Stott, Stone and Fae, 2016).
Purpose: To make available products and financial advisory services easily to every one.
Legal structure: It involves limited company, cooperatives, private Ltd company and
public limited company. Merrill Lynch is following private Ltd legal structure under which it
sale different products and services.
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Voluntary: This is non profit making company who main motive is to provide maximum
benefits to customer by giving good services. For instance, save the children is a voluntary
organization that provide a protection to poor people and achieve objectives by providing good
health and support to children. It was founded in 1919 for improving the lives of children by
providing health care, better education and economic opportunities.
Purpose: Its main purpose is to provide better education to poor people and improve
their living life (Cumming and Zahra, 2016).
Legal structure: This consider trust, unincorporated association and charitable
incorporated organization. Save the children is following trust legal structure.
P2. Size and scope of different types of organisations
Company run their business in different field in which they are expert and make profits
by running their business. There are variety of organization with different size and scope that are
defined as:
Private (Merrill Lynch ):
Size: It is largest bank that provides variety of services to its customers such financial
advisory, investment and loan services in short period.
Scope: Merrill Lynch operating business at 250 Vesey Street and number of employees
are 15000 who provides financial advisory services to numerous clients.
Objectives: To run business independently in order to make more profits.
Public ( BBC):
Size: BBC is a public sector company that is a public service broadcaster provides
information and current affairs to people. It is public owned company that is larger in size due to
providing good services and reality of world.
Scope: BBC has 20,916 employees who are working to provide information to people
and make efforts to provide right information to people. In order to complete target it provides
good information and influence people.
Objectives: BBC's objective is to become largest organization by providing current
affairs and right information about world to people (Falkner, 2017).
Voluntary (Save the children):
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Size: Save the children is large in size as it improves lives of children by providing good
education, economic opportunities, health care and protection which influence people and give
satisfaction.
Scope: It has wider scope as it operates business in more than 120countries all over the
world.
Objectives: To increase living lives of poor children by providing better education and
heath safety information that helps to save people.
Sole trader (Planet of the grapes):
Size: It has small size due to dealing in small area. It run its business by making own
business decision and make profits at small level.
Scope: As it is small or sole trader business that sales wine and spirits to its customers. It
does not collects amount from public to run its business. It perform different activities such as to
provide different types of spirits and wine to customers and focus on operations for making more
profits.
Objectives: To earn maximum profits by selling number of products like wine and spirits
(Uchihira, Ishimatsu and Inoue, 2016).
Partnership (John and Lewis):
Size: This is around third of a size of normal departmental store who operates business
business in UK. Its helps to provide different types of goods and services in market that helps to
achieve goals.
Scope: John Lewis & partners in which 38,100 employees are working continuously and
provide good products. Its products are home & garden, light & furniture, electricals and other
products and services.
Objectives: The objectives of John and Lewis is to make high profits from its trading and
maintain commercial vitality and finance within organization.
Task 2
P3 Organisational function and their link to organisational objectives and structure
Functions of any organization is a core process and activities that are carried out within a
department of a company. The functions of company includes human resource, information
technology, customer service, finance, marketing etc. All functions are linked with each other
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and helps to perform business activities efficiently. Organizational structure depend on business
activities, roles and responsibility, power that is controlled by organization to make profits.
Different types of organization structure are given below:
Divisional structure: In this structure also known as multi divisional structure in which
work is assign among all employees and maintain productivity for long period. By using this
structure organization can attain objectives because decision can make independently.
Line structure: This is simplest structure in which authority flows from top to bottom
and share information in order to make right business decision. In this structure, chain of
command and control over different department is easy that helps to perform business functions
and achieve objectives (Tukker and Tischner, 2017).
Merrill Lynch is following divisional organizational structure that contain necessary
resources and functions in order to perform business activities. By following such structure
manager of Merrill Lynch assign work between employees and achieve objectives.
The link of organizational function are defined as:
Marketing and HRM: Marketing is required in all organization as it helps to increase
the sales of products and services. HRM is integral part of entity who recruit skilled employees
for selling the products. It is liked with organization structure and objectives such as In Merrill
Lynch, HR manager understand marketing's demand and select skilled person that helps to
increase profitability that leads to achieve objectives. Merrill Lynch is following divisional
structure in which manager assign work and compete objects.
Marketing and finance: Both functions are important within organization as it helps to
achieve goals and objectives by following appropriate structure. Merrill Lynch is following
divisional structure in which marketing manager divide work and state how they can in crease
sale by influencing people. Marketing department get money from finance department in order to
perform business activities effectively that helps to achieve business objectives.
Information technology and HRM: In Merrill Lynch, manager follows divisional
structure that helps to achieve business objectives efficiently. The research manager of Merrill
Lynch uses new technology and share with HR manager to implement such technology that
influences customers and make more profits (Gauthier and Gilomen, 2016).
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CONCLUSION
From the above report it can be concluded that environment is important for any business
industry. In business environment there are different organization such as sole proprietor, public,
partnership, private and voluntary that run its business in order to make profit and provide good
services to people. Legal structure and objectives are depend of size and scope of business
organization that helps to achieve business objectives.
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REFERENCE
Books and Journal
Cepel, M., and et.al., 2018. Business environment quality index in the SME segment. Journal of
Competitiveness. 10(2). p.21.
Cumming, D. J. and Zahra, S. A., 2016. International business and entrepreneurship implications
of Brexit. British Journal of Management. 27(4). pp.687-692.
Falkner, R., 2017. Business power and conflict in international environmental politics. Springer.
Gauthier, C. and Gilomen, B., 2016. Business models for sustainability: energy efficiency in
urban districts. Organization & Environment. 29(1). pp.124-144.
Grigore, A. M. and Drăgan, I. M., 2015. Entrepreneurship and its economical value in a very
dynamic business environment. Amfiteatru Economic Journal. 17(38). pp.120-132.
Hitt, M. A. and Xu, K., 2016. The transformation of China: Effects of the institutional
environment on business actions. Long Range Planning. 49(5). pp.589-593.
Stott, R. N., Stone, M. and Fae, J., 2016. Business models in the business-to-business and
business-to-consumer worlds–what can each world learn from the other?. Journal of
Business & Industrial Marketing. 31(8). pp.943-954.
Tukker, A. and Tischner, U. eds., 2017. New business for old Europe: product-service
development, competitiveness and sustainability. Routledge.
Uchihira, N., Ishimatsu, H. and Inoue, K., 2016, September. IoT service business ecosystem
design in a global, competitive, and collaborative environment. In 2016 Portland
International Conference on Management of Engineering and Technology
(PICMET) (pp. 1195-1201). IEEE.
Uhl, A. and Gollenia, L. A. eds., 2016. A handbook of business transformation management
methodology. Routledge.
Um, J., 2017. The impact of supply chain agility on business performance in a high level
customization environment. Operations management research. 10(1-2). pp.10-19.
Zur Muehlen, M. and Shapiro, R., 2015. Business process analytics. In Handbook on Business
Process Management 2(pp. 243-263). Springer, Berlin, Heidelberg.
Online
Sole trader.2019. [Online]. Available through:
<https://startups.co.uk/naming-your-sole-trader-business/>
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