Business Environment Analysis: UK Business Types and Structures

This report provides an in-depth analysis of the UK business environment, focusing on different types of organizations including public, private, and voluntary sectors, and their respective legal structures. It examines the size and scope of various organizations, using examples like ASDA, British Council, and Good Things Foundation. The report explores the interrelationships between different organizational functions, such as HRM, marketing, and finance, and how these functions link to business objectives. It further analyzes the positive and negative impacts of macro-environmental factors on business operations using PESTLE analysis, and identifies internal and external factors to identify strengths and weaknesses. The report concludes by discussing how these strengths and weaknesses interrelate with external macro factors, providing a comprehensive overview of the business landscape.

TYPES,SIZE, SCOPE,
LEGAL STRUCTURE OF
BUSINESS UK

Table of Contents
INTRODUCTION...............................................................................................................3
Task 1................................................................................................................................3
P1Types and purposes of organisation that are Public, private and voluntary sectors
and their legal structures................................................................................................3
P2. Size and scope of a range of different types of organisations................................5
Task 2................................................................................................................................6
P3 Relationship between different organisational function that links to objectives.......6
Task 3................................................................................................................................9
P4 Positive and negative impacts of macro environment factors upon business
operations.......................................................................................................................9
Task 4..............................................................................................................................11
P5 Internal and external analysis of organisations to identify their strength and
weaknesses..................................................................................................................11
P6. Strengths and weakness interrelate with external macro factors.........................12
CONCLUSION.................................................................................................................13
REFERENCE...................................................................................................................14

INTRODUCTION
There are different types of business structure and culture that are helpful to
attain the business objectives. Business environment is the accumulation of external
and internal factors which influences businesses environment and attracts many people
to increase the business profitability (Belás and et. al., 2014). The business
environment is comprises with many factors which are important to for increasing
performance, growth and survival. All businesses entity operates their businesses in to
different environment that helps to maintain the high productivity and profitability. This
report is based on three different types of company who are running their business in
different sectors such as public, private and voluntary that are explained. In this ASDA
has been consider as private organisation, British council is public and Good Things
foundation is considered as voluntary organisation which are reflecting on business
environment.
This project contains details about size, type and scope of business organisation,
interrelations between different functions, positive and negative impacts on business
environment. Furthermore, it considers internal and external analysis of business
organisation and interrelation of strength and weakness of external factors.
Task 1
P1Types and purposes of organisation that are Public, private and voluntary sectors
and their legal structures
In business environment, different types of organisation are operating their
business with the permission of government and non government and with the help of
charity (Boone, and et.al ., 2019). All organisation are having a dream of become
largest company in the world by providing better quality of products and services. The
description of different organisation are as given:
Public: This types of organisation are closely help by government authorities
where more than 500 employees are working at one place. Such organisation
concentrates on public services by providing different types of services. British Council
is public organisation that is specialise in international cultural and educational

opportunities. It works more than 100 countries by promoting English language,
scientific, educational co-operation and encouraging cultural functions.
Purpose: To create international opportunities and cultural relations for the
people of UK as well as other countries worldwide.
Vision and mission: Good future for UK which is depend on culture living and
working together of people. To create a good understanding for people and enhance the
level of education, culture and respect between people.
Objectives: “To create international opportunities for UK's people and other
countries and also build trust between people and organisation worldwide.”
Legal structure: Public sector are operated and managed governmental bodies
and legal structure (Erasmus, Strydom and Rudansky-Kloppers, eds., 2016). The legal
structure of public company comprises with local government, state government and
central government.
British Council is following central governmental legal structure as it is largest
company that operates its business in different countries.
Private: This means any person, corporation, association or partnership which is
not a public body and are running their business for the purpose of earning profits. All
risk and profits are controlled by privately by following the private regulations. Such as
John Lewis partnership that is private organisation, operating departmental stores,
banking and financial services and other related activities are run by such organisation.
Purpose: The main purpose of John Lewis partners is happiness for all
members as well as customers by providing and satisfying them.
Legal structure: The private sector consider different types of legal structure
such as sole trader, partnership and company who are operating their business
successfully. John Lewis partners is largest employees owned business organisation
that are operating their business under Partnership legal structure in which partners are
decided their profit sharing ratio by formulating partnership deep.
Vision and mission: To be first choice of customers in selecting clothing,
jewellery, watches, giftware, housewares, photography, food and financial services.

Objectives: To make sufficient profits and high productivity from trading
operations. To sustain commercial vitality and finance by providing attractive products
and services.
Voluntary: When group of individual and people are working for social work and
not for profit is consider as voluntary organisation. In this people are working collectively
for the purpose of common interest and accomplishing business objectives. Generally
such organisation operates business for non profits and public welfare at large level.
Good Thing Foundation is one of the Voluntary organisation that helps people to
overcome the challenges by supporting the people. This is UK based charity
organisation is working for world by providing digital technologies. This is responsible
for managing Online Centres Network which is also known as Online Centres
Foundation.
Vision and mission: To establish a world where each people get benefits of
digital platform or technology.
Objectives: It is working with objectives that are to improve the life of people
through digital technology and social welfare and deliver the digital solutions on different
social issues.
Purpose: The main purpose of Good Thing Foundation is to drive social change,
remove inequality and deliver deep impact of digital technology at scale.
Legal structure: The voluntary sector is established under various form or
structure such as unincorporated association, trust and company.
Good Thing Foundation is working under trust legal structure in which many
members are working together for the purpose of serving public and social welfare.
P2. Size and scope of a range of different types of organisations
Every business has different size and scope which is depend on business
activities of organisation. Different types of challenges and risks are bear by
organisation for the purpose of growing continuously. The size and scope of business
organisation are as given:
Public company (British Council):
This organisation is founded in 1934 by British government for the purpose of
running international culture and educational programme . It was founded by

Christopher Rodrigues CBE and Sir Ciaran Devane. It helps people to get educational
and cultural services and improve their lives.
Size: This is second largest organisation that has 5000 employees who are
working collectively for providing different services to customers. b
Scope: This organisation is running its business at many location by serving
many people which states large scope.
Private Company (John Lewis):
This is a British partnership firm which was founded in 1929 by John Spedan
Lewis, Sir Charlie Mayfield and Paula Nickolds for running super markets, providing
banking and financial services etc. It become easy for customers to select the products
and services and feel good.
Size: It is largest size organisation in which approximately 83000 employees are
working and earning a revenue of 10.2 billion.
Scope: John Lewis is serving and providing better quality of product in large
number to customers.
Voluntary company (Good Thing Foundation):
This is UK based charity organisation is founded in 2011 by group of people for
the purpose of providing benefits of digital technology. This is a staff owned firm that
provides a digital platform to people for improving their living standard.
Size: Currently, it has collaborated with more than 5000 community partners who
are providing digital services to general public for enhancing their livings.
Scope: It has wider scope which is established with aims to increase the digital
media users so, they can maintain quality of life. Moreover, by using digital media
issues can be resolve which are related with society.
Task 2
P3 Relationship between different organisational function that links to objectives
In any business organisation there are different functions which are played by
management in order to attain the business objectives (Georgescu and Popescul,
2015.Harmon, 2019). Organisational structure is the way of running a business with the
help of employees who understand the problems and get solution by following

appropriate structure for the purpose of accomplishing business objectives. For
example, John Lewis is focusing on different functions such as finance, Human
resource, marketing, information technology, production etc. that are connected with
organisational structure which are as follows:
Organisational structure:
Line organisation structure - In this structure organisation maintain vertical
relationship between different types of level in industry who are involving in
accomplishment of business goals (Types of organisational structure, 2019).
Source: Line organisational structure, 2019
Matrix organisational structure: It consider as permanent organisation which is
designed to attain the specific results with the help of team specialisation from various
functional areas. It helps to make decentralised decisions and improves the
environmental monitoring.
Illustration 1: Line organisational structure. 2019

Illustration 2: Matrix structure. 2019
Source: Matrix structure, 2019
Network structure: This structure is mainly used in large size organisation
which helps to maintain relationship between employees and employers. Moreover, it
helps to connect the people at international level.
Illustration 3: Network organizational structure. 2019
Source: Network organizational structure, 2019.
From the above structure John Lewis is following Network organisational
structure which helps to enhance the business at wider level. In this structure centre
organisation has connected with all organisation that helps to run a business. Such as
the management of John Lewis has linked with design company, distribution,

manufacturing, financial, account processing and transport company which helps to
increase the productivity and profitability.
The functions of John Lewis are linked with organisational structure and objectives:
HRM with marketing: Both are important functions for business organisation as
HRM department understand the needs of marketing department and recruit skilled and
marketing employees (Maunder, 2019). For instance, John Lewis wants to enhance
their selling share with the help of marketing department. As it follows Network structure
in which it connected with marketing employees are recruited by HRM department
which helps to attain business objectives by selling the number of products and services
at large number.
Marketing with finance: To perform the marketing functions there is need to
have finance which can be used in advertisement, organising seminars and etc. By
following Network structure the finance department of John Lewis provide funds to
marketing functions which helps to accomplish business objectives. The functions or
such organisation are connected with structure and objectives for instance, under
network structure it share with all national and international country which attracts
customers in order to increase the productivity and profitability.
Task 3
P4 Positive and negative impacts of macro environment factors upon business
operations
PESTLE Analysis – This is a tool which are used by all the business entity in
order to know which factor can impact on their business organisation and how it can be
overcome. The PESTLE analysis of John Lewis are as defined:
Political- Various components are related with political factor such as tax policy,
labour law, government stability or instability, trade restriction and many more which
affect the John Lewis company such as:
Positive- John Lewis is influencing positively by free trade regulation which helps
to operate business within other countries (Kasemsap, 2019). It allows management to
import and export the products at international level which helps to increase the
productivity and profitability.

Negative- After Brexit company had faced many difficulties such as no relation
with other country and change in government policy which impacted negatively on such
organisation.
Economical- Many elements are consisted in such factor such as interest rate,
exchange rate, inflation rate, dilatation and economic growth which affects John Lewis
organisation diversely such as:
Positive- If government has change the rate of interest in term of low then
business will be affected positively such as John Lewis can take loan at low rate of
interest which leads to high productivity and profitability (Quinlan and et. al., 2019).
Negative- The rivals of John Lewis are using discount pricing strategy due to
which businesses of respective company influenced negatively as it has to bear high
cost for its high quality products.
Social- Different types of element are consist in this factor such as beliefs,
culture, values, needs, taste, demands and preference etc. are impacts on John Lewis
organisation such as:
Positive- This affects positively John Lewis is understanding the needs and
wants of people and provide clothes, jewellery and other items as per customer choice
which increases business sale and production level as customers are ready to pay extra
amounts.
Negative- This factor affect unfavourably such as most of the employees of John
Lewis are age of more than 40 year who do not consider new tradition and culture of
people due to which they offers old design products which reduced the interest of
people (Saleem, 2017).
Technological- New technology is high important for business organisation as it
involves automation, changes in mobile and digital technology, research and
development so on which can influence business of John Lewis company.
Positive- It affect favourably such as by using mobile and digital technology many
customers of John Lewis started to purchase online and make payment also which
helps to save the time and transportation cost of respective company.
Negative- The cost and expenditure of company can be increase in research and
development function which can be impact negative in case of not getting good results.

Environmental- It is affiliated with environmental element such as climate
change, CSR, weather, carbon footprint, wastage disposal and recycling process which
influence John Lewis's business in different term such as:
Positive- John Lewis management is focusing on change in weather which helps
to sale the products accordingly which helps to attracts customers and keep
environment safe that affects business favourably (Saleem, 2015).
Negative- If management of John Lewis is not following environmental laws and
using plastic bag continuous which can influence businesses unfavourably.
Legal- This is associated with different laws such as employment laws, labour
laws, policies etc. are used to run a business effectively which impacts on John Lewis
organisation such as:
Positive- The management of John Lewis is following equality and diversity act
which attracts employees in order to work more efficaciously and also influence
company.
Negative- In case of not offering equal pay to John Lewis's employees resulting
employee turn over which impacts on business organisation.
Task 4
P5 Internal and external analysis of organisations to identify their strength and
weaknesses
SWOT analysis is a tool analysis method which states strength and weakness of
organisation by influencing positively and negatively. The internal analysis of different
organisation are as defined:
SWOT analysis of John Lewis
Strength Weaknesses
 John Lewis has husky and robust
growth strategy.
 It provides extensive products and
services (Shenkar, Luo and Chi,
2014).
 Strong presence on online business
 Lack of focus on customer
demands.
 Discounting pricing strategy of
competitors.
 Inconsistent profitability.
 High cost and expenditures in

and marketing.
 High brand value.
 Focusing on innovation and
creativity which attracts customers
more.
research and development.

Opportunities Threats
 Increasing demand of private labels
and brand (SWOT analysis of John
Lewis, 2019).
 Having scope to enter in to new
market.
 Focus on healthy food and other
cultures of person.
 Quality of products and services.
 Uses of new technology.
 Many laws and regulation which
need to follow in order to run a
business.
 High competition dominated by
other business players.
SWOT analysis of Good Thing Foundation
Strength Weaknesses
 To focus on new technology which
attracts customers more.
 To provide digital services or
platform to customers.
 To increase the leaving standard of
people.
 Competition can be dominated by
other digitalised platform.
 Changes in technology rapidly.
Opportunities Threats
 Time update for technologies and
other services.
 Preference on customer's needs
and wants which helps to connect
 Rivals can bring other technology
which may be threat for
organisation.
 Changes in government policy and

for long term.
 New and high life status.
 Save cost and time of customers.
tax rates.
 Not good relation with other
country.
P6. Strengths and weakness interrelate with external macro factors
Marks & Spencer
Political factors Strength: Free trade regulation and low tax rate is major
strength for John Lewis which helps to run a business in other
countries also.
Weaknesses: Changes in government can be weakness for
John Lewis as it has to follow new government regulation which
may be tight and impacts negatively on business.
Economic factors Strength: Decr5ement in interest rate is a strength for John
Lewis as it can purchase products on credit by paying less
interest.
Weaknesses: John Lewis can face high cost and expenses
due to providing products by other organisation at less or
discounted prices which can be weakness for organisation.
Social factors Strength: By providing products and jewellery according to
changing demand of people can maximize the sale of John
Lewis company which is benefit for organisation.
Weaknesses: Not providing products as per customer demand
can be threat for organisation as selling units can be decrease.
Technological
factors
Strength: By using this John Lewis can aware people and
provide information about new products which is strength as
customers starts to buy the products online in less time.
Weaknesses: Cost of organisation can be increase as it
implement the cost of advanced technology.

Legal factors Strength: By this John Lewis can improve the brand value of
organisation as it follows health and safety act which is strength
of company (Wetherly, 2014).
Weaknesses: If firm is not following the rules and regulation
then it can influence negatively.
Environmental
factors
Strength: Use of wastage and other material in packaging the
products are strength for business as it minimise the carbon
effect.
Weaknesses: Customer can move towards other organisation
in case of not following health and food safety act.
CONCLUSION
From the above report it can be concluded that in business environment various
sectors are running their business. The main purpose of public organisation is to run
non profit by providing different services, to earn higher profits is the main purpose of
private and to improve the live of people is purpose of voluntary organisation. The
businesses of any organisation affected from internal and external factors which are
important to consider while running a business. PESTLE analysis is consider as
external factor which states positive and negative impacts on business. The functions of
business organisation are integrated with organisational structure and objectives.

REFERENCE
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Online
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<https://smallbusiness.chron.com/different-types-organizational-structure-
723.html>
SWOT analysis of John Lewis. 2019. [Online]. Available through:
<https://www.swotandpestle.com/john-lewis/>