Business Environment Analysis: Private, Public, Voluntary

This report provides an in-depth analysis of the business environment, examining various organizational types including public, private, and voluntary enterprises. It focuses on companies like Nike, L'Occitane, and Barnardo's, discussing their purposes, legal structures, size, and scope within the market. The report explores the interconnectedness of organizational functions such as human resources, finance, marketing, and production, highlighting their impact on company objectives. Furthermore, it investigates the positive and negative impacts of the macro-environment, encompassing political, economic, social, and technological factors, on business operations. The report also includes SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to evaluate the current market scenario and offers a comprehensive understanding of the external macro factors influencing business decisions.

Business And
Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
Discuss purpose of distinguished types of organization such as public, private and voluntary
and legal structure. .....................................................................................................................1
Explain the size and scope of public, private and voluntary organization. ................................3
ACTIVITY 2....................................................................................................................................4
Discuss the relationship between various organizational functions and how are they connected
to firm's objectives and structure. ..............................................................................................4
ACTIVITY 3....................................................................................................................................5
Investigate positive and negative impacts of macro environment on business operations. .......5
ACTIVITY 4....................................................................................................................................8
Conduct SWOT (Strengths, Weaknesses, Opportunity and Threats)analysis for the
organization.................................................................................................................................8
Explain strengths and weaknesses inter-connected with external macro factors. ......................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The term Business can be defined as a platform where trading of goods and services takes
place in order to make profits. Here, both seller and buyer come together to carry out transactions
as well as to meet the emerging needs of the customers in the competitive world. Whereas,
Business environment refers to as combination of internal and external factors which affect the
smooth functioning of the business. This report is based on three types of company which are
private, public and voluntary. Here, private firm is L'Occitance, public firm is Nike and
voluntary enterprise is Barnardo's. This report covers purpose of various firm like public, private
and voluntary as well as size and scope the organization in the market. Moreover, how macro
and micro environment affect the working of the environment and it's productivity (Andersson
and Holm, 2015). Additionally, SWOT (Strengths, weaknesses, opportunities and threat) and
PESTEL analysis are carried out so that present market scenario can be evaluated in a proper
manner.
ACTIVITY 1
Discuss purpose of distinguished types of organization such as public, private and voluntary and
legal structure.
The various types of organization are pubic, private and voluntary where, public firm is
Nike, Private enterprise is L'Occitance and voluntary firm is Barnardo which are explained as
follows:
Basis Public Organization Private Organization Voluntary
Organization
Meaning Public Organization
can be defined as those
companies which are
under the control of
government weather
on local, state or
central level.
Private organization
refers to as those
enterprise which are
owned and operated
by private individuals.
Voluntary
organization is not
controlled by
governing bodies. It is
an agreement where
individual want to be a
part of the association.
Objectives Public sector main Private enterprise main Voluntary
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motive is to serve the
nation.
moto is to earn
maximum profits at a
large scale in the
global market.
organization main
objective is to work
for the betterment of
the society.
Allocation of funds for
development
Private firm collect
funds from various
sources like, penalty,
taxes, public revenue
etc. so that
developments can be
done.
By issuing shares and
debentures in the
market funds can be
gathered by public
company so that
business can be
expanded to the next
level.
Here, voluntary
organization
accumulate sources of
funds through, charity,
donations etc. so that
plans can be made for
the upliftment of the
community on
continuous basis.
Legal structure of Private firm are:
Sole Trader: In sole traders less amount of finance is required to start a business. Here
are few examples such as, newsagents, hairdressing etc.
Partnership: In partners the profits and loss are shared among the partners according to
their agreed ratio of sharing. In an firm partners can be from 2 to 20 depending upon the size of
the company (Bah and Fang, 2015).
Private Limited Company: In this case it a joint stock company in which business has
separate legal entity. The shareholders are the part of the form and in any circumstances shares
are not sold top the general public.
Legal structure of Public firm are:
Local government: It is the local administration of countries, cities, towns which
includes both country and municipal government structure.
State government: This is accountable to share political powers with the federal or
national government.
Central government: It is the political authority which governs an nation. The United
state is a federal system in which authority and powers are shared among central and state
government.
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Legal structure of Voluntary firm:
Charity: Funds are allocated by the firm through various charity clubs. In this case,
voluntarily individuals contribute amount in the development of the society.
Explain size and scope of various public, private and voluntary firm.
Trust: Voluntary organization gather monetary amount from various trusty where several
investors or companies contribute their a part of profits for the growth and upliftment of the
community.
Here, L'Occitance is using private legal structure and Nike is adopting Public legal
structure in order to run their business smoothly in the cut throat competitive world (Brown,
2018).
Explain the size and scope of public, private and voluntary organization.
The size and scope of public, private and voluntary enterprise are discussed as follows:
Basis Public Organization
(Nike)
Private Organization
(L'Occitance)
Voluntary
Organization
(Barnardo's)
Scope Nike is making it's
footwear from the
plastic which is
collected from oceans.
It is a great scope for
the firm in the coming
years.
The scope of
L'Occitance is to come
up with more natural
product in the market.
The scope of
Barnardo's is to give
back bright future to
the children. And
create awareness
regarding
discrimination,
poverty etc. so that
lives of the children
can be transformed
into better.
Vision overview The vision statement
of Nike is to stay the
most distinctive and
authentic brand in the
To become glbl
references for
Mediterranean is the
vision statement of
The vision of
Barnardo's is to
provide better future
for all children's.
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cut throat competitive
world.
L'Occitance enterprise.
Product Barnardo's The product of Nike
are Nike basketball,
sportswear etc.
L'Occitance Divine
Youth oil, L'Occitnace
extract serum,
L'Occitance Womens
Rose etc. Are some of
the products of
L'Occitnace company
which are able to meet
the raising demands of
the customers.
Barnardo's provide
services like, support
to the childrens with
disabilities, life-
limiting conditions,
providing parenting
programmes etc. so
that children future
can be made bright.
Number of employees
working.
Around 73,100 staff
members are working
to fulfil the needs,
demands and
preference of the
customers in Nike
enterprise.
In L'Occitance firm
8630 workers are
working day and night
to meet the set goals
on time.
5026 employees are
working in Barnardo's.
ACTIVITY 2
Discuss the relationship between various organizational functions and how are they connected to
firm's objectives and structure.
In L'Occitance there are several organizational functions such as, human resource,
marketing, finance , research and development etc. which are directly or indirectly related with
companies objectives and structure are explained as follows:
Human resource and Finance department: In L'Occitance the HR and Finance
department are interconnected with each other as finance division allot the budget to the HR and
ask to mange the recruitment activity accordingly (Chang, 201). The monetary transaction are
mentioned by the finance sector so that unsuitability of funds does not occur. Activities of both
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the sector will decide weather set objectives will be achieved or not. This departments functions
are directly related with the smooth functions of the business. Example: X firm is hiring 10
employees in their company. The finance sector allot the budget accordingly so that expenses
regarding hiring, training etc. can be managed effectively.
Finance and Research and development department: When L'Occitance conduct
research and development activity so that opportunities can be garbed at the earliest in the
market. Here, R&D carry out the findings according to the budget assigned so that best outcomes
can be achieved. The functioning of this sector provides a rough idea to the firm that goals can
be achieved or not in the due time. Example: Y company conduct research and development so
that in order to study the threats prevailing in the market but there was lack of communication
among the department due to which inefficiency funds occurred and findings was not completed.
It is very important to have effective relations so that proper findings and results can be achieved
(Charter, 2017).
Marketing and Production department:The sales ratio increase when the
advertisement of the product or services are done in effective manner. The productivity volume
is totally dependent upon the marketing strategies used by the enterprise. Effective tactics aid in
raising sales ratio and are able to meet the set objectives on given time duration. whereas,
ineffective strategies assist the company and the product to winds up from the market.
ACTIVITY 3
Investigate positive and negative impacts of macro environment on business operations.
Macro environment refers to as external factors like, political, economical,
environmental, legal, technological and social which directly or indirectly affect the
administration decision making process in the market place. L'Occitance study external
environment so that current market scenario can be examined and strategies can be formulated
accordingly. By doing so huge market share can be captured as well as prevailing opportunities
and threat can be turned into their court as benefits (Hillary, 2017).
Political factor: Political factor includes taxation policies, regulatory bodies etc.
Organization need to follow regulations of the nation so that business can be expanded easily.
So L'Occitance keep a eye on the modifications done by the governing bodies so that in the
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working there is no interference of government. In this case firm closely lobby theses changes
and make strategies for growth and expansion accordingly.
Positive Impact on business:
 As in UK there is political stability it is easy for any business to explore and grow in the
market.
 Administration is able to capture huge market ratio in the cut throat competitive world as
UK is holding stable economic growth.
Negative impact on business:
 Organization need to modify tactics according to the policies designed by the governing
bodies in the market (Kolk, 2016).
 Changes in policies slowed down the growth and expansion rate of enterprise in the cut
throat competitive world.
Economical factor: It includes, interest rates, government policy, taxes, labour cost etc.
The raising inflation rate in the market is greatly affecting the L'Occitance due to which
profitability ratio is decreasing. The position can be improved by hiring skill level of employees
in the existing market in order to improve services in accounting sector. By doing so the
company can come up with innovate product and more customer base can be increased.
Positive impact on business:
 Organization come up with innovative idea in the market.
 By adopting the economic factor business can easily adopt to the changing environment
of the nation and can raise customer base for the product or services.
Negative impact on business:
 Rules and regulations need to be changes accordingly due to which productivity level is
affected at a large scale.
 Conflict in management arises as more diversified employees are appointed in the
working premises to meet the demands of the customers.
Social Factor: Social factor includes costumes, norms, ethics, economic status etc.
Organization work towards the upliftment of the community so that goodwill can be raised in the
eyes of the customers. By doing living standards of the people increases which is a positive sign
in the market. L'Occitances should uses resources at optimum level so that there is less or no
wastage of resource which is scare in quantity (Nohria, 2017).
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Positive impact on business:
 By carrying out social responsibilities firm's market value increases at a rapid scale.
 When company contributes it's share in the upliftment of the society then enterprise gets
motivates to perform better so as to create tough competition in the global market.
Negative impact on business:
 If the firm continues to degrade the environment government can seal the organization or
else can cancel the license (Wheelen and Bamford,2017).
 Creates negative image regarding the company in the eyes of the customers due to which
market share gradually.
Technological factor: Advancement in technology has made the work easy to asses in
the market place. Organization uses modern tools then customers demands can be meet on time
and profitability ratio can be raised respectively in the cut throat competitive world. Using
outdated tools or equipments decreases the rate of production in the market and gradually market
value decreases in the market place (Pearson, 2017).
Positive impact on business:
 Advancement in technological and tools aid the business associates to bind the customers
with their product and services. As well as the rate of switching to other brand in order to
meet the demand also decreases.
 Administration uses modern tools then though competition can be created in the market
for other companies.
Negative impact on business:
 Adopting modern tools has increased the cost of production due to which prices of the
good raised.
 Potential customers are switching to other brand which is cheap in rate in other to satisfy
their needs.
Environmental factor: This includes renewable technology, Paris climate,
environmental norms and regulations etc. L'Occitances uses methods of recycling so that
environment does not depleted. The resources are effectively and efficiently used with less
emission of harmful gases in the atmosphere. By doing so productivity level raised and goodwill
in the market raised respectively (Prajogo, 2016).
Positive impact on business:
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 Taking steps to safe environment helps the firm to raise brand recognization in the eyes
of the customers. It also aid to build loyal customers towards the firm and it's product.
 It encouraged to do more research work in the market so that innovative idea can be
generated which can be used for the betterment of the environment.
Negative impact on business:
 Neck to neck competition is prevailing in the market due to economic factor.
 In order to survive for longer time duration company is investigating alternate options so
that customers needs can be fulfilled respectively.
Legal factor: Heath and safety norms, environment laws, Legal protection law etc. are
some of the examples of legal factor in the competitive world (Quinlan and Griffin, 2019).
L'Occitance adopts legal laws so that there is no interface from the government side and business
functions smoothly and is able to meet objectives on time.
Positive impact on business:
 Effective staff members can be retained for longer time duration which is a positive sign
for the enterprise.
 Market share increase due to which firm is able to pull customers towards the product or
services.
Negative impact on business:
 Employees turnout ratio increases at a rapid scale when laws related ton workers are not
adopted in proper manner.
 Organization faces problems in achieving goals and objectives on time.
ACTIVITY 4
Conduct SWOT (Strengths, Weaknesses, Opportunity and Threats)analysis for the organization.
SWOT (Strengths, Weaknesses, Opportunity and Threats) analysis are conducted by an
organization so that prevailing opportunities and threats can be examined accordingly. It is tool
which is used by business associates to identify strengths, weakness, opportunities and threats so
that effective strategies can be formulated in order to improve the weak points (Schaltegger and
Lüdeke-Freund, 2016). The SWOT analysis of L'Occitance are discussed below:
Strengths Weaknesses
 L'Occitance main strength is that it has  Business associates are penetrating into
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high brand equity globally.
 Administration has spread it's business
across America, France, Europe etc.
where market share as well as customer
base is more.
 Organization has reliable supply of
materials from local vendors which are
directly or indirectly adding value into
authenticity.
emerging economies.
 There are several top brand working in
the beauty products so there is neck to
neck competitions in order to achieve
high margins at global village.
 Firm is investing less in research work
due to which the firm performance
slowed down as there is lack of market
knowledge.
Opportunities Threats
 In the coming years L'Occitance has the
opportunity to flourish their beauty
brand across the nation.
 There is rapid raise in per capita
income due to which consumers are
spending more on discretionary items.
 Business concern is leveraging brand
recognition in new segments in the cut
throat competitive world.
 Continuously raising number of
competitors in the market due to which
firm sustainability is at risk.
 On daily basis the inflation rate is
raising due to which cost of production
raised which leads to decrease in
profitability.
Explain strengths and weaknesses inter-connected with external macro factors.
Political factor: The strengths and weaknesses of the firm are interconnected with macro
factor because the frequent changes in policies lead to weak point in the market. Due to which
the productivity decreases in the market (Saleem, 2015).
Economical factor: Here macro factor work parallel with the strength and weakness any
modifications in macro factors leads to change in firms strengths and weaknesses. Due to which
skilled turnout ratio raises and market value decreases.
Social factor: Social factor greatly affect the strengths and weaknesses of the
organization as well as their productivity level. They inter-connected because working of the
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business depends on the external factors in the cut throat competitive world (Virglerová and
Vojtovič, 2016).
CONCLUSION
From the above it can be summarized that there are various types of organization such
bas public, private and voluntary and all has their own size and scope in the market. It also throw
light on several organization functions and how they directly or indirectly affect the smooth
functioning of the business in the market. Pestle analysis is conducted in order to better
understand the macro environment by the organization so that tactics can be formulated
respectively for expansion of business. Whereas, SWOT analysis are carried out in order to
known the strengths, weaknesses of their own company and opportunities and threats prevailing
in the competitive world.
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