HND Business - Level 4: Business Environment Report - Jan 2017

This report provides a comprehensive overview of the business environment, exploring different types of organizations, including public, private, and voluntary sectors. It delves into the objectives, funding sources, and employee benefits associated with each type. The report further examines the size and scope of various organizations, categorizing them as large, medium, or small, and analyzing their market share and profit margins. It also discusses various business structures like franchising, joint ventures, and licensing, highlighting their characteristics and legal requirements. The report concludes by emphasizing the importance of understanding these aspects for businesses looking to expand and navigate the global market. The report is a solution to the assignment brief provided, and it fulfills all the learning outcomes and assessment criteria outlined in the assignment brief.

BUSINESS
ENVIRONMENT

Table Of Content
• Introduction
• Different types of organisation and their purpose
• Size and scope of range of different types of organisation
• Conclusion
• References

INTRODUCTION
 Business environment is very important concept in
business. Every business have to face different factors
due to external environment.
 In this presentation different types of enterprises and their
structure are mention.
 The scope, purpose, legal obligation of each kind of
organisation has been discuss

Task 1

Different types and purposes of organisations
• Public enterprise
• Private enterprises
• Voluntary Sector
Meaning Private firms
refers to those
firms which
are owned by
private
individuals.
Public are
those which
are owned
by
government
of particular
country.
Voluntary are
those in
which group
of people
come
together and
start
business.
Objectives The main
objective of
private
enterprises is
to earn profits
and expand
their market
share.
The main
objective
public
company is
to do welfare
and earn
small
marginal of
profits.
The main
objectives of
voluntary
enterprises is
to look about
well being of
people

SHARES OF DIFFERENT
ORGANISATION

Raise of money Private companies
raise funds by equity,
debentures and others.
Public enterprise are
raise funds from taxes,
excise duties and
other government
revenues.
Donation and charity
are the fund sources
for voluntary
enterprises.
Employees benefits In private companies
employees are getting
good salary, incentives
and wider career
opportunities.
In public company the
employees get the life
time security.
In voluntary the
person is getting the
self satisfaction as
they are doing job
for some good
reasons.
Examples Virgin Group. Tesco and Mc Donald American red cross

Main Purpose of Business
 To bring continuously new innovations.
 To serve customers
 To earn profits and sell products across the world

Explain the size and scope of a range of
different types of organisations
Basis Large Medium Small
Objectives The objective of large
enterprises is to
sustain in market and
remain at the top
position.
The main objective of
these firms is to
expand market and
earn more and more
profits.
Small firms having the
objectives of running
their business in a way
so that they can
survive in market and
fulfil their basic needs.
Market share The market share of
these firms are very
high.
Medium firm are
providing services in
domestic areas of
country.
These are operating in
single areas and
fulfilling the needs of
customers living near
by particular areas.
Profit share High profits. Having moderate
profit margins Low profit margins.
Growth and
sustainability
Having good market
sustainability and
growth.
Moderate High

Basics Franchising Joint ventures Licensing
Meaning In franchising the one
firm gives authority to
another enterprise to
sell their product by
the name of franchise
brand.
In joint ventures two
companies comes
together and work on
same projects.
In this one company
gives the license to
licensee so that they
can use the brand
name and manufacture
products.
Registration Mandatory Mandatory Not necessary
Training and support Compulsory Not necessary Not necessary
Degree of control High control No control Control but lesser than
franchising.

CONCLUSION
There purpose of operating business is different for various organisation
These differences can be in their size, nature, employees, enterprise
structure. Company can go for foreign market to expand their business so
that more customer can buy their products. To enter in foreign market
there are different ways. Such as merger, joint ventures, franchising and
licensing. The legal formalities also differ from business to business.

REFERENCES
Baraya, A.R., Budden, M.C. and Escobar, L.M., 2011. Strategically
Enhancing Business Capabilities And Social Development In The
Hispanic Community. Journal of Business & Economics Research
(JBER). 6(6).
Chavis, L.W., Klapper, L.F. and Love, I., 2011. The impact of the business
environment on young firm financing. The world bank economic review.
25(3). pp.486-507.
Commander, S. and Svejnar, J., 2011. Business environment, exports,
ownership, and firm performance. The Review of Economics and
Statistics. 93(1). pp.309-337.

Thank You