A Report on Business Types, Functions, and Macro Environmental Impact

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This report provides an in-depth analysis of different types of organizations, including public, private, and voluntary sectors, along with their respective legal structures. It explores the size and scope of these organizations, examining the relationships between various organizational functions such as marketing, finance, sales, IT, human resources, and operations, and how these functions contribute to achieving organizational objectives. The report also delves into the impact of the macro environment on business operations, supported by examples, using Next Plc as a case study to illustrate key concepts. The report covers various aspects of business environments, including internal and external factors that influence decision-making, and concludes with a summary of the key findings and implications for business management and development.
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Business and Management
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Table of Contents
Introduction................................................................................................................................3
Main Body..................................................................................................................................3
P1 Explain different type and purpose of organisation; public, private and voluntary sector
and their legal structure..........................................................................................................3
P2 Explain the size and scope of the range of different type of organisation........................5
P3 Explain the relationship between different type of organisational function and how they
are make a link with organisational objective and their structure..........................................7
P4 Identify the positive and negative impacts on the macro environment on the business
operations, supported by specific examples...........................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11
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Introduction
The nature of business and business environment is can be defined by the internal and
external nature factors that may sometimes affect the company internally and externally. This
relation of the companies may make a strong impact on their decision making concept. When
the topic comes with business environment then it includes all the different aspect of business
environment either at micro level or macro level (Abdelkafi and Täuscher, 2016). For
example they cover the nature, type, legal structure, scope and many more factors that may be
affect with the any change in the business environment. In order to complete this project the
chosen organisation is Next Plc, it is a British multination organisation that deals with the
customer’s products like foot ware, cloths and many home products. It is founded in 1864 by
Joseph Hepworth. It’s headquarter is in Leicester, United Kingdom. This project include the
basic details about the different type of organisation and their legal structure. Size and scope
of different type of organisation and the relationship in between different organisational
functions. And the impact of macro environment on the business operations. All of these
information are valuable and important for completing this project.
Main Body
P1 Explain different type and purpose of organisation; public, private and voluntary sector
and their legal structure
In the business industry, there are mainly three type of industry which are operate
differently having different functions and different legal sectors. With having kind of purpose
for the country and consumer. Which are explain below:
Public sector Private sectors Voluntary sector
Definition These are the
organisation which
are not for profit
organisation. It is
owned by
government and
provide different
type of services to
their customer for
social basis.
These sector
organisation are
related for profit
based organisation
(Appelbaum and
et.al., 2017). It is
owned by individual,
partnership, group or
many other ways.
This also can be
These are the
organisation which
are operate for social
activities. These
organisation are
specially owned
with some people
who are working for
the motive of not for
profit.
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owned by
government or semi
government.
Purpose The main purpose of
the organisation is to
serve their customer
at lowest cost or at
no cost. These are
government owned
bodies which serve
public goods,
military, police,
infrastructure,
transport and many
other goods for the
betterment of
society.
They are the
important part of the
country as they are
relate to the growth
of country’s
economic system. It
is owned by mainly
any individual and
group to running the
daily operations for
running profit within
organisation (De
Vries and et.al.,
2017). Furthermore
they are mainly
important source of
growth and
development and
increase the per
capita income of the
country.
They are comprised
with many type of
organisation. So
there main purpose
is to serve the
country and their
people. They
provide different
kind of benefits and
enrich the society at
large level without
thinking for the
return purpose. They
create the social
wealth and improve
the health status of
the organisation.
Relation with
chosen organisation
Taking the example
of BBC group,
which is one of the
largest broadcasting
services in the public
sector of UK. Their
main focus is to
serve their customer
best broadcasting
For using private
sector the chosen
organisation is
NextPlc, which is a
fashion industry in
UK. This is the
organisation which
sell books for the
students which are
For completing this
cancer research in
UK. It is important
that they are
providing light on
the sheds for the
social media for
conducting research
and different
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services in order to
maintain the level of
news, radio, Music,
weather and many
more. They spread
the news and
knowledge based
programme all over
the country.
helpful for the youth
development. And
fashion products for
the youth. Having
main focus on profit
they are giving high
competitive
advantages to the
other company also.
campaigns for
giving right better
treatment to the
patients. They are
Not for profit based
organisation and
mainly spread
organisation in order
to implement for
decrease the impact
of patients at all the
levels.
Legal structure of the British Broadcasting group: Being a public sector organisation, it
has a corporate and governance structure. This is a statuary corporation, independent from the
government intervention. Their main focus is on the serving the best broadcasting services
within the country and all over the world (Gorla, Chiravuri and Chinta, 2017). Their activities
are overseen by April 2017 by the BBC board and regulated by the Ofcom. Chairman is Sir
David Clementi.
Legal structure of Next organisation: This is a private organisation which are mainly focus
on the profit earning part. Being the private limited organisation in fashion sector their main
focus on more digital learner cantered products and serve their customer at best quality.
Legal structure of Cancer research: This Company has met their aims and goals by setting
some specified objectives. The one who are fighting with the disease like cancer are now able
to getting help of nurses, doctors and many social workers. This will increase the structure
and strengthen of the organisation. They are able to strengthen their internal structure with
providing many kind of services.
P2 Explain the size and scope of the range of different type of organisation
Micro enterprises Small enterprises Medium and large
enterprises.
Size It will include with the small
sector where the employment
They are mainly
owned by the
Here most of the
companies are work
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level is low with some low
investment capital within
organisation.
independent bodies
and having small
numbers of
employee. Their
capital investment is
high than the micro
enterprises. And
their main focus is to
enhance the capital
for long run and
increasing their
supply value (Hair
Jr, Page and
Brunsveld, 2019).
in the multinational
organisation and
they are effective in
handling all the
issues at large level.
They are spread at
the high levels and
able to shift their
goals by the
changing nature and
environment
circumstances. This
type of organisation
are work and
effective for the long
run prospective and
helpful in increasing
employment benefits
of company.
Scope Most of the developing
countries are operate these
type of organisations. As these
are large number of
organisation within country
and provide major employment
benefits within country. This
will add up the value in the
economy and increase the
amount of gross domestic
products. Cancer research is
the suitable example of this
micro scale industry as it was
spreading in only UK and
They are private
owned bodies
mostly in sole
proprietors or
partnership firms.
These organisation
are providing chance
to the organisation in
order to increase
their size and scope
of company within
organisation. Next is
the suitable example
of small scale
They are the
multinational
organisation which
are working their
operations in their
own home country
and many other
international
countries. The profit
which is earned by
the companies are
set aside in order to
enhance their future
activities. BBC
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having low capital budget. industry. group is perfect
example for medium
or large scale
industry. As they
operate their
activities all over the
world.
While taking the example of small, medium or micro scale industry, focus is only on their
scope and size of the organisation. The micro sector industry is not having a small sectors but
they also increase in their numbers due to easy access and large verities of opportunities in
market. Within the developing country this is important to insure the level of micro sector
industry as they are the one who visit and make some valuable approach for the growth of
country and company at their local level (Hamilton and Webster, 2018). Cancer research is a
voluntary company so they have low capital investment but their work culture are increase
more and more opportunities. Having the advantage of freedom and complete the need of
employee at easy level where the disadvantage they are suffering from is to suffer from
financial risk and high competition in the market.
The small scale industry, Next plc, which serve in fashion industry in UK. Their main
focus is to increase their sale either at online portal or physical outlets. They trying to shift
their culture from traditional to digital platform. They have the advantage of completing their
mission and vision with strong employee’s base and high control of owner. And disadvantage
of finance and heavy competitions.
In the medium and large scale sectors, the concluded example is British Broadcasting
services. They are serving their services to all over the world. Having high relationship with
other companies and flexibility become the advantage and customer loyalty and difficulties in
collecting funds are become the disadvantage for the company in market (Hasee and et.al.,
2019).
P3 Explain the relationship between different type of organisational function and how they
are make a link with organisational objective and their structure
With the increasing risk in the market, the need of organisational functions that
actually play an important role in order to complete the organisational objective of the
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company. This is very important for the organisation to perform in the nature of interlinked
behaviour, as it will help the organisation to perform with high profit ratio and low conflicts.
The relationship between the organisational departments are described below:
Marketing departments: marketing department is the most important department in
the company which are work with the nature of customer oriented. This department actually
maintained the relationship with customers and other department of the organisation (Lee,
2017). This make the god brand image in the market as the Next Plc., are discover some
major advantage policy that affect the management department and achieve their basic
objectives.
Finance department: Finance department is the one who provide the budget within
the organisation and related to the other organisational department. All the department need
to make an inter relationship with finance department as they are the one which make the
budget and run the day to day operations in order to perform effectively in market. In next
plc, all the control on inventories and supply are in the head of finance department.
Sales departments; this is the department which increase the size of the company in
market with expanding the relationship with external and internal stakeholders of the
company. Furthermore they are the reason to maintain the relationship with their customers.
As their employees have make the direct relationship with the customer and provide some
relevant information that may be affect the growth of the business.
It department: This is the department which innovate some major new techniques
which are used for reduce the cost expenditure of the company and deal with efficiency of the
services within organisation. In next plc, this department help to make some major initiatives
and innovation that affect the growth of the company. This will further helpful for effect the
employee’s efficiency.
Human resource departments: HR department is the one who recruit the right
candidate within organisation at the right time. So they are the one of the important
department. They make the relationship with each department as all department employees
are recruit by them and their good growth and satisfaction level is derived and analysis by
them in order to make the growth within organisation (Nielsen, 2016).
Operational departments: Operational department is the one who produce the
products which are effective and reliable for the need of organisational point of view. They
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make the relation with HR and sales department mainly as they provide the information
which products are demanded by their customer most and what they need to produce least. To
make the tough competition within market they perform the very well function. In next plc,
this is very important and to operate products effectively and with the accordance with
customer behaviour. This will help the organisation to stay in market and perform very well.
P4 Identify the positive and negative impacts on the macro environment on the business
operations, supported by specific examples
Macro environment include those factors which include external factors that are
incontrollable but at the same time they affect the growth of business and their decision
making. These external factors include; political, legal, environmental, economic,
technological, social environments. Any change in these environment affect the decision of
the company. Some time they affect positively and sometime affect negatively;
Political and legal factors: These include any change in the government activities or
any legal changes in rules and regulations of employment, production or any other business
operations activities (Pucihar and et,.al., 2019). This will affect the marketing decision and
publishing activities of Pearson. As if government charges high rate of taxation in UK then it
will impact negatively on the company.
Economic factors: This are the broad factors which actually include national and
international aspect of the business. When business organisation are working under complex
economic environment which affect the decision of the company negatively. Also affect the
production and consumer decision making. While they are working in fashion industry so to
use sustainable and environment friendly products is very important for the growth of
company in market.
Social factors: This will include the targets of customer behaviour with some major
social changes. Change in customer preferences, attitude and different kind of values will
affect the growth of supply within organisation. As if the change of the customer affect
positively, then it will increase the supply of Next Company at high rate.
Environmental factors: This will include the environmental factors from some of the
natural resources for the growth of business, such as forests, agricultural products, and many
of the non-renewable resources (Saura, Palos-Sanchez and Correia, 2019). These external
environment affect the decision of Next majorly. They should take care about the
sustainability and green impact on the environment.
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Technological factors: These factors include the services of technologies and skills
which are always give a positive impact on the Next Company. The changes in the
technologies will increase the efficiencies of their employee and it will increase the
production and supply of their goods in market (vom Brocke, Zelt and Schmiedel, 2016).
These factors are important for the growth and revenue of the company and as per their main
motive they needed digital platform for increasing opportunities.
All of these macro environment factors affect the decision of the organisation in two
ways either positive or negative. The changes happen in external environment but affect
internally so it is important to increase efficiency of the company to analysis the impact of
these factors in order to improve the position and good decision making (Schwepker and
Ingram, 2016).
Conclusion
From the above project it is concluded that, in the market there are three different
industry are set which have different body structure and different legal aspect. They have
different legal strategies which are needed to accomplish the detail and run the business in
market with high profit ratio. Furthermore, with the help of their interrelationship
performance and growth adventure, they are running with some high profile market ratio and
giving high quality structure. Pestle is conducted in order to analysis the positive and
negative impact on the macro environment of the company. The way of their operations are
different which are evaluate in this project. This project explore the wide range of the
understanding and size of the three sectors for the business and analysing the company’s
micro and macro environment aspect for the individually.
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References
Books and Journals
Abdelkafi, N. and Täuscher, K., 2016. Business models for sustainability from a system
dynamics perspective. Organization & Environment, 29(1), pp.74-96.
Appelbaum, D. and et.al., 2017. Impact of business analytics and enterprise systems on
managerial accounting. International Journal of Accounting Information
Systems, 25, pp.29-44.
De Vries, R.E. and et.al., 2017. Explaining Unethical Business Decisions: The role of
personality, environment, and states. Personality and individual differences, 117,
pp.188-197.
Gorla, N., Chiravuri, A. and Chinta, R., 2017. Business-to-business e-commerce adoption:
An empirical investigation of business factors. Information Systems Frontiers, 19(3),
pp.645-667.
Hair Jr, J.F., Page, M. and Brunsveld, N., 2019. Essentials of business research methods.
Routledge.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford
University Press.
Haseeb, M. and et.al., 2019. Role of social and technological challenges in achieving a
sustainable competitive advantage and sustainable business
performance. Sustainability, 11(14), p.3811.
Lee, I. ed., 2017. The Internet of Things in the Modern Business Environment. IGI Global.
Nielsen, R.K., 2016. The business of news. The SAGE handbook of digital journalism,
pp.128-143.
Pucihar, A. and et,.al., 2019. Drivers and outcomes of business model innovation—Micro,
small and medium-sized enterprises perspective. Sustainability, 11(2), p.344.
Saura, J.R., Palos-Sanchez, P.R. and Correia, M.B., 2019. Digital marketing strategies based
on the e-business model: Literature review and future directions. Organizational
transformation and managing innovation in the fourth industrial revolution, pp.86-
103.
Schwepker, C.H. and Ingram, T.N., 2016. Ethical leadership in the salesforce: effects on
salesperson customer orientation, commitment to customer value and job
stress. Journal of Business & Industrial Marketing.
vom Brocke, J., Zelt, S. and Schmiedel, T., 2016. On the role of context in business process
management. International Journal of Information Management, 36(3), pp.486-495.
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