Business Environment Report: Organisation Types, Functions, Analysis

This report provides an in-depth analysis of the business environment, focusing on the interplay of internal and external factors affecting organizations, particularly within the context of a sports company, SportsPursuit, London federation of sports and Recreation and Sports England. The report begins by defining the business environment and its components, including micro and macro environments, and then classifies organizations into private, public, and voluntary sectors, outlining their purposes and legal structures. It further examines the size and scope of different organizations, including micro, small, and medium enterprises, and various organizational structures like hierarchical, functional, horizontal, divisional, and matrix structures. The core of the report analyzes how organizational structure, size, and scope link to business objectives, products, and services, using the sports company as a case study. The report then explores the relationships between organizational functions, objectives, and structure, highlighting how functional, divisional, and matrix structures impact business operations. Finally, it evaluates the advantages and disadvantages of interrelationships between organizational functions and their impact on organizational structure, concluding with a summary of the key findings and their implications for business success.

Business And The
Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Explain different types and purposes of organisations; public, private and voluntary..........3
sectors and legal structures..........................................................................................................3
Explain the size and scope of a range of different types of organisations...............................4
Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation................................................5
Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................5
Analyse the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have upon organisational structure........................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment is defined as the sum total of collection of the external and internal
factors that affects the working of the organisation. These includes the employees of the
organisation, customers needs, management clients, suppliers, owners, activities by the
government, innovation and technology, economic changes and many more. Business
environment helps businesses to identify the opportunities and generates useful resources that
helps in improving the performance of the business. Business environment further divided into 2
parts which consists micro environment and macro environment. Business environment is the
most important component in any business as any input-output conversion in the business can be
carried through regular and constant interaction with the environment. The report is being made
in the context of sports company which is SportsPursuit, London federation of sports and
Recreation and Sports England company (Betti and Sarens, 2020). The aim of this report is to
highlight the different purposes of the organisation with range of scope of the organisations. It
also explains the relationship between different organisational functions.
TASK
Explain different types and purposes of organisations; public, private and voluntary
sectors and legal structures.
An organisation is defined as the bunch of people that work together in order to achieve
multiple and common goals which is associated with external and internal business environment
(Gogokhia and Berulava, 2021). There are many types of the organisation such as some are
formed to earn profits and some are non-profit organisation and worked for the general public.
The different types of the organisation are described below:
 Private sector organisation- This type of organisation are owned by private individual
rather than any government sector and build in order to generate the profit for the
company's shareholders. Most of the working companies around the globe are belongs to
the private sector. These organisation are financed by the private money. Some of the
examples of the private sector organisation are retail, hospitality, home services and
many more. SportsPursuit is the private company , works in order to earn profits through
the selling of wide range of sports and outdoor brands.

Purposes- The purposes of this organisation is to earn profit by selling of sports equipments to
the customers.
Legal structure- The company is running in the partnership of 11 partners as there are 11
investors.
 Public sector organisation- This type of the organisation are owned and operated by the
government and for the general public of that state. The money that is invested in the
organisation are raised from the public taxes and fees and transferred to local government
from central government. The goods and services that they are providing are for the
benefit of the community (Nudurupati, Garengo and Bititci, 2021) . The examples of
this organisation are governmental services, public education, health ans many more. The
public sector sports company is Sports England which helps people and communities to
get the sporting habitat.
Purposes- The purpose of Sports England to provide Sports equipment to all the needed
people in reasonable rates.
Legal structure- It is a Government company , rum by government of UK.
 Voluntary sector organisation- The main purpose of this type of organisation is to build
and create social impact instead of earning profits. These organisation are usually made
to enrich society without any motive of earning profit with no government intervention.
Most charities are included in voluntary sector organisation. The sports company from
the voluntary sector is London federation of Sports and Recreation.
Purposes- The purpose of London federation of sports and Recreation is to serve sports
equipments to the public which are not accessible to the people.
Legal structure- The legal structure of this company is Community interest company which
have multiple investors.
Explain the size and scope of a range of different types of organisations.
There are different sizes of the organisation are discussed below:
 Micro enterprises- This type of organisation are defined as the small businesses
employing less than 20 people. Micro enterprises includes sole trader and organisation
self- employed.

 Small enterprises- This is the privately owned company employed less than 10
employees. These organisation includes grocery stores, medical stores, bakeries, small
manufacturing unite and many more.
 Small Medium Enterprises- This type of organisation are non-subsidiary and are
independent businesses which employees less than 250 employees. The example of small
medium enterprises are local restaurants, grocery stores and many more.
There are multiple type of organisation that are discussed below:
 Hierarchical organisation structure- It is the most common and followed structure of the
organisation and the chain of the commands in the company flows from top to bottom. It
defines better level of authority and responsibility and each employees works under a
specific projects.
 Functional organisation structure- These organisation structure defines the type of work
top level workers have highest responsibilities and the work and responsibilities are goes
down from there to the low level. Employees are organised according to specific skills.
 Horizontal or flat organisation structure- These types of organisational structure consists
only few levels between upper level and lower level (Rezazadeh, 2019) . This structure
encourages minimum supervision and more contribution from all the employees.
 Divisional organisation structure- These organisations found there own resources and
operating their functions on large scale as each divisions have their own different
departments and empowers various divisions to make important decisions.
 Matrix organisation structure- This type of structure implements cross functional teams
that works for special functions and allows supervisors to easily choose individuals in
accordance to the need of tasks.
Basis Private organisation Public organisation Voluntary organisation
Name SportsPursuit Sports England London federation of
Sports and Recreation.
Size Medium enterprise Large enterprise Large enterprise
Scope Having high potential
in selling sports
equipment with
Major scope in
providing growth to
the people.
Running not for the
people but for the
benefit of the people

effective prices. of the UK.
Objectives To earn profit and the
success of the
organisation.
To serve sports
equipments easily with
affordable process.
To serve sports
equipment for the
people who are unable
to get the services.
These are non-profit
organisation.
Vision To make company
publicly known and
positive brand image.
To serve services for
the benefit of people.
To serve services for
the benefit of people.
Mission To earn profit and the
success of the
organisation.
To Earn minimum
profit as well as
provide growth to the
people.
To provide services to
the people who are
not capable to pay for
it.
Legal structure The legal structure is
private company.
Their legal structure is
central based
organisation. Run by
government.
The legal structure of
this organisation is
community interest
company.
Stakeholders The stakeholders are
investors, employees
and the customers.
Government and the
general public is the
stakeholders.
The stakeholders are
community who
invested in this charity
and the people who
gets the benefit from
it.
Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation.
Organisation structure and the size defines the working level of the organisation and generates
the scope of growth in the organisation. SportPursuit is the medium organisation in which

approximately 54 employees are working. The objective of the organisation is to sell sports
equipments to the public. Its a private company that runs in order to generate the profits. They
are functioning in purchasing and selling of hundreds of top brands at affordable prices. They are
offering many services and deals with helpful customer service. They are also serving policy of
30 days return. The objective of the organisation is to sell sell top brands sports equipment and
reach to the customers who are interested in the sports (Saiti and Stefou, 2020) . Their products
are very useful in context of sports. In the context of Sports England and London federation of
Sports and Recreation the size of both the organisation is large and the scope for working is to
serve the sports equipments for the people who are not capable to purchase them from private
organisation.
Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
There are close interrelation between the organisations functions, objectives and structure.
The functions of the organisation are based on the organisation objectives and the structure. The
structure of the organisation are influences the overall nature of the organisation functioning and
time span of the organisation functions. How functions of the organisation effects the structure of
the organisation are discussed below:
 Functional structure separates departments- Different functions in the organisation needs
different department for the specialization in the work. Many businesses adopts
functional structure in the organisation with chain of commands. Different functions in
the organisations needed separate departments and report different managers. This helps
in employees to focus on particular mission and build organisation structure. In the
context of SportPursuit company works in functional structure in the organisation and
have different department in accordance to the functions. The marketing through different
advertisements. They operates in accordance to the management of the organisation , they
provide guidance to the organisation in their working. ss
 Divisional structure has multiple branches- This allows functions to spread across the
organisation and the division in each product has different functions in different areas
such as marketing, sales, accounting. The benefits of this approach is that each division
consists the different functions. Sports England is working in the divisional organisation
structure as there functions have spread among the whole organisation in accordance to

the different areas of performance. They perform marketing functions through the
advertisement in the newspaper and on online portal. They operates their functions by
highly formal ways as the roles and responsibilities are defined for each nad every
workers.
 Matrix structure provides flexibility- The matrix structure in the organisation provides
flexibility in business functions as each employees works in accordance to the
departments in with that they have assigned projects under different managers and
teamed up with other employees. This structure of the organisation adapts functions
according the changing business needs. The London federation of Sports and Recreation
organisation follow this organisational structure in the company. They operates their
work with the employees whose aim is to benefit of local people instead of earning profit.
They promotes the organisation through the online platform.
Analyse the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have upon organisational structure.
Interrelations among the functions of the organisations are different with different types of
organisations which helps in delivering different product and services to the customers. The
advantages of the interrelations of these 3 organisations includes that better relations helps in
achieving business objectives more effectively, and all the efforts can create or enhanced
products values through the sync in efforts (Svensson and Raw, 2022) . The disadvantages of
that includes that interrelation in the functions and structure are very time consuming in
performing and take more tome in decision making process. Sometimes these interrelations are
less effective in sales and results in poor functioning. The interrelatedness of these sports
organisations results in personal grudges and differences in the objectives.
CONCLUSION
From the above report it is concluded that in the organisation business environment plays a
very important role in generating opportunities that enhances the business working. This report is
made in the reference of a sports company which is SportPursuit. It includes the different types
of the organisation which are public, private and voluntary organisation. Then it discusses the
size , scope and range of the organisation that are micro, small and medium enterprises. The type

of organisational structure includes Hierarchical organisation structure, Functional organisation
structure, Horizontal or flat organisation structure, Divisional organisation structure and Matrix
organisation structure. At last it discusses the relationship of organisational functions and
structure.

REFERENCES
Books and Journals
Betti, N. and Sarens, G., 2020. Understanding the internal audit function in a digitalised business
environment. Journal of Accounting & Organizational Change.
Gogokhia, T. and Berulava, G., 2021. Business environment reforms, innovation and firm
productivity in transition economies. Eurasian Business Review, 11(2), pp.221-245.
Nudurupati, S.S., Garengo, P. and Bititci, U.S., 2021. Impact of the changing business
environment on performance measurement and management practices. International
Journal of Production Economics, 232, p.107942.
Rezazadeh, J., 2019. Analysis of Organizational Performance: Financial and Structural
Approaches. Organizational Resources Management Researchs, 8(4), pp.1-22.
Saiti, A. and Stefou, T., 2020. Hierarchical organizational structure and leadership. In Oxford
Research Encyclopedia of Education.
Svensson, P.G. and Raw, K., 2022. Hybrid organizational forms in sport for development and
peace. Social innovation, entrepreneurship, and sport for development and peace.
Routledge.