Business Environment: Types of Organizations, Size, and Scope Report

This report provides a comprehensive analysis of the business environment, focusing on three distinct types of organizations: public, private, and voluntary. The report uses Morrisons (private), Oxfam (voluntary), and NHS (public) as case studies to illustrate key concepts. It explores the different types and purposes of these organizations, detailing their legal structures, stakeholders, and objectives. Furthermore, the report examines the size and scope of each organization, including their products, services, vision, and mission. The analysis extends to the interrelationship of organizational functions, the impact of macro-environmental factors using PESTLE analysis, and the application of SWOT analysis in decision-making. The report also includes critical evaluations of the factors influencing business objectives and decision-making processes, providing a detailed understanding of the complexities within the business environment.

Business and the
Business Environment

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types and purposes of organisation........................................................................1
P2. Explanation of size and scope of a range of different types of organisations.......................3
M1. Analyse how the structure, size and scope of different organisations link to the business
objectives.....................................................................................................................................5
D1: Providing a Critical analysis of complexities of different structures of business and
interrelationship among them......................................................................................................6
M2: Analysis of advantages and disadvantages of interrelationship of organisational functions
and impact on the structure of organisation.................................................................................8
.....................................................................................................................................................8
M3: Application of PESTLE Model for understanding different factors of MACRO
Environment..............................................................................................................................11
M4: Application of SWOT analysis and justification of their influence on process of decision
making.......................................................................................................................................13
D2: Critically evaluation of different factors that are micro and macro and posses impact on
overall business objectives and process of decision making.....................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment indicates to the amalgamation of both macro and micro
environmentalcomponents like target audiences, suppliers, owners, needs of consumers, supply
and demand and many more. Along with this, there are several practices that is applied and
determined by national authorities. These activities are governmental policies, technical
advancement, exchange rate etc. Thus, it has been found out that business environment assists in
determining assets, business growth option and development in respect to improve the entire
execution of the business venture appropriately(Kurniawan, Christiananta and Ellitan, 2018).
This assignment is supported to Morrisons which is the fourth largest chain of supermarket in
UK. This venture was incorporated in 1899 and is headquartered in Bradford, West Yorkshire,
England. The written document will define information about three companies that are public,
private and voluntary firm. In case of private enterprise, Morrisons is selected as the base firm
which deals in grocery and household products. Another organisation is Oxfam and the main
motive of this venture is minimise and remove poverty or improving the living standard of
people. NHS is a public sector enterprise which was incorporated in 1948 and major purpose of
this firm is to offer social care services to individuals. Moreover, the document will consist brief
analysis if scope and size of diverse kinds of companies and interrelationship with other
functions along with their link with organisational structure. Furthermore, positive and
unfavourable influence on the macro environment will also explain.
TASK 1
P1. Different types and purposes of organisation
Public organisation- It is a form of company which is totally owned and governed by national
authorities of the nation. They offer effective and efficient services to their target audiences in
reference to improve the brand image and market position. In current era NHS is selected public
sector organisation which offer different services to its consumer associated to health(Arnold,
Beauchamp and Bowie, 2019). National Health Service Company was incorporated in 1948 with
the purpose of offering free health services to people.
Purpose- NHS is a public sector firm whose incorporation purpose is to provide free
health services to people who are living in the nation. With this motive, they provide effective
heath services to society and make contribution in improving their heath.
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Legal structure- In public firm all decision of the venture is takenany national authority.
In context of NHS, the government of the country like state and central government is
responsible for decision making(Krishnamoorthi and Mathew, 2018). So, all the decisions that
are taken by government, top authority of the firmmakediscussion with their workforce in an
appropriate manner.
Central government:Its purpose is to control and administrate the assets of the economy
by assisting the company to execute work effectively. They have the power to make rules and
regulations in the advertisement of the economy. Establishment who come under central
government require taking permission about all main things and need to disclose all the crucial
stuff.
State government:Some product and services are offered by state government only so
they share their power with national government also.
Local government:Requirement at personal level is found out by them. They gather
finances also by way of council tax.
Stakeholder- In context of public sector venture, stakeholders play an effective role.
They are the one who invested their fund and connected with the profit of the organisation.
Stakeholders which are consisted n this form is financial institutes, national authorities and many
more. All these capitalists highly influence working of the firm. Some of the stakeholders are
consisted as local authority, patients and trustees.
Private organisation- It is the company that consists a person, partners and agency that is not a
public body and run its business for gaining profit. In addition to this, it might be a non-federal
body that is self incorporated and surviving. In current report, Morrisons is selected firm which
is private sector company and deals in grocery items. For this, they have sufficient amount of
workers within their company in reference to administrate their business activities and
operations.
Purpose- Morrisons is a selected private sector enterprise which is an international firm and
is operated its business in groceries cross wise the globe. It is headquartered in West Yorkshire,
England and founded by William Morrison. The purpose of this firm is to offer best services
with reasonable cost to its target audiences. In addition to this, they can fulfil the needs and
desires of consumers and maintain the brand image at the rivalry market. This will assist in
accomplish their aims and objectives.
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Legal structure- Legal structure and frameworkofprivate firms are based on the top
management like CEO and board of director etc. They are take decision regarding firm with the
assistance of law and legislations. In respect to Morrisons, all the decision or the venture is based
in senior management which is instantly communicated with their workers.
Sole proprietorship: Within this a single people operate business and aim to accomplish
profit for single individual. Capital needs are less in such kind of business and profitability and
loss is borne by the sole people. No legal permission is needed for such kind of business.
Partnership: Limit of member is among 2-20 individual. Partnership exploit is arranged
under this which talks about profit share ratio, capital bought and several rules of the partnership.
Paperwork is needed under this and it is time taking in nature.
Corporation:It is started by the team of people. The purpose is to accomplish profitability
but it needs lot of paper works andconformity which eventually turns in to contract. Stakeholder
is the involved parties under this.
Stakeholders- They is the individual in each business venture related with some purpose and
outcome. Performance of company highly affects the behaviour of stakeholders(Silva and et. al.,
2018). In Morrisons, stakeholders consists capitalists, workers, target audiences and government
agencies etc.
Voluntary organisation- It indicates to the set of different actions and functions that is not
administrated, controlled and directed by the national authority. On the other hand, it is the act
which is owned and governed by external individuals and government of the nation(Akhmetshin
and et. al., 2018). In existing report, Oxfam is a voluntary sector company which was established
in by Cecil Jackson Cole in 1942 in England. This firm is associated 20 independent charitable
trusts.
Purpose- The main motive of this venture is to make a poverty free society. The vision of
respective firm is to develop the living standard of people so that they can that they can minimise
the poverty from environment. Apart from this, the mission of this company is to develop
equality among the people who areliving with the nation.
Legal structure- The legal framework of voluntary firm is based on the trusty and top
management. In context of Oxfam, all the decision of the company is based on the trusty of
organisation. All the decision should be connected to the growth and development of society and
workforce.
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Trust:Trustees start this kind of charitable business for the welfare of community. Trust deed
is the document which indicates each and every brief information about trust. It follows legal
normsand customs which is characterised as legal charitable trust.
Un-incorporated association:The rules and legislation under this kind of charity is not
defined in any constitution there is lot limitations in allocation of finances and capital. It is not a
lawful entity as it does not follow any law and regulations.
Stakeholders-It consist those people who are linked with the profit of the enterprise. It
mainly includes the founder, employees, beneficiary and many more. Along with this, there are
diverse kinds of stakeholders which considers as project members, consumers, project team and
sponsors etc.
P2. Explanation of size and scope of a range of different types of organisations
Organisation is an area where business operations are executes and there are generally
three types of organisation such as public, private and voluntary. The explanation of size and
scope of them are defined as under:
Private organisation- Morrisons is a private sector company which is an international
superstore which deals in groceries and operates in retail sector. It is the fourth largest
supermarket across the world. The explanation of its diverse functions is explained as under:
Product and service- The organisation offer different products, like food & drink,
clothing, books, magazines and CDs & DVDs(Gu, Wang and Wang, 2019). The firm offer its
commodities and services through the mediumof supermarket and outlets.
Size and scope- The firm have vast scope in upcoming time as they offer better quality of
services to their target audiences. In context of size, the organisation operates its businesswith
the help of 110,000 employees and approx 500 stores cross wise the globe.
Vision and mission- Morrison provide their services with the mission of “The Very Best
For. Less”. Along with this, vision statement of the venture is to be one of the most valuable
businesses by providing qualitative services to consumers, colleagues and shareholders(Becher,
2018). The firm want to develop their business where they have been reached yet and offer their
services in untapped market.
Public organisation- In this research, NHS is considered as public organisation that offer health
services to their individuals. It was incorporated in 1948 in England and provides free treatment
or serves its services to those individuals who are the permanent member of UK. Dental
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treatment and optical services are also the part of NHS services. The organisation also needs to
pay their prescription charges as per their earning. The description of size and scope of this firm
is explained as under:
Product and services- According to NHS, they offer different health services to their
individual. The major incorporation principle of the firm is to offer free and comprehensive
services to their nation. The venture was established in 1934 and Dr Somerville Hastings was
proposed the resolution of NHS. The organisation provides emergency medical help services,
emergency treatment along with treatment of infectious diseases free to everyone.
Size and scope- In NHS, currently working staff is nearly about 17,197 according to the
year of 2019. Cause of Brexit, the employees turnover is high and people are leaving the nation
as they do not feel secure for the family,. In respective firm around 11% physician make their
contribution in operating the business of the venture. There is vastscope in the firm as they are
planning to maximise their medical training employers from 7500-15000 by year 2030. NHS has
current working staff of 1.5 million people those who provide their services crosswise UK.
Vision and mission- Vision statement of the organisation is to make individual to live
healthier lifestyle in the best potential manner. Another vision of the firm is to offer efficient and
organized care whosoever visit their healthcare institutions and hospitals. The mission of
respective enterprise is facilitating the target audiences with their outstanding services that
people and families want for themselves(DuPlessis and et. al., 2019). The firm wants to serve
with high quality treatment and safe care with whole devotion. The venture have mission to treat
workforce with decorum and respect each client they meet. Acknowledging the issues of people
and offering effective solution which is best for their consumers.
Voluntary Organisation- Oxfam was founded in 1995 by different group of independent and
semi Government Company. The purpose of the firm was to work together for greater influence
on the community to minimise and remove poverty and injustice(Sebikari, 2019). Oxfam provide
humanitarian services to large population and therefore offer relief to their demands and
requirements and moreover develop their standards in best determining way.
Product and service- They work for community and have several volunteer services like
they work regarding poverty to remove it with the motive of providing abetter life to society and
developing their living standards, deals in emergency responses, long term development and
multimedia. The major motive of the firm is to offer long lasting solution to those people who
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are suffering from poverty. As the Oxfam is the part of international movement modification
because they offer services to motivate people to raise their voice for upcoming time that is
secure.
Size and scope- The scope o is also very enormous for the company because the poverty
has reached in each corner of the globe. They have to continuously participate to the society and
frame plan of actions to fight these issues. Oxfam provide their service by having confederation
of 20 charitable companies.
Vision and mission- The vision of the Oxfam is make the world free from poverty so that
the survival of the population can be easy. The venture wants that individual should be treated in
similar manner without making any kind of discrimination on the basis of gender, age, colour
and race etc. The mission of the firm is to confront the law and framework of the unfairness of
poverty and come with effective solution and take action against these complexities(Tallman,
Luo and Buckley, 2018). The administration of the respective firm is allying with their
contributors locally and internationally to strong their roots and fights or takes action regarding
discrimination among community.
Differences between micro, small and medium and large
Basic Micro Small Medium Large
Size There are less than
10 employees &
turnover under £2
million.
There are less than
50 employees &
turnover under £10
million.
There are less than
250 workers &
turnover under£50
million.
There are more than
500 employees who
make their
contribution in
running the business.
Scope There is not wide
scopebecause this
kind of business is
operated for earning
livelihood.
These kinds of
businesses are
operating for earning
survival and
providing
employment to local
people.
The scope of this
kind of business is
more than small
because these kinds
of venture offer
employment to
individual.
The scope is wide
because they operate
their business
international level
and provide
employment at large
level.
Purpose The main motive of
this kind of venture
isoffer survival to
local people.
The purpose of these
kinds of businesses
isproviding
employment to local
people and they are
The motive of these
venture are operate
business for earning
profit and providing
job opportunities to
The main motive of
these ventures to
earn profits and
offering products
and services to
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operating for earning
profit..
people. consumers.
M1. Analyse how the structure, size and scope of different organisations link to the business
objectives
Structure, size and scope of companies are connecting with the objective of the business
ventures. It can be analysed that a business set a huge target as their aim only when they have
effective organisational structure. If the company has few individual in their organisational
framework and no one has any information about their role and subordinate then it is not easy for
them to reach the objective and target.The administration of the venture devises objectives by
determining their business scope. If the scope of the firm is to offer its products and services to
global clients then they will frame business aims accordingly. As per the product and service, a
firm devise their structure size and scope(Kurniawan, Christiananta and Ellitan, 2018). If the
firms analyses that their commodities does not need immense organisational structure then they
do not set that.
D1: Providing a Critical analysis of complexities of different structures of business and
interrelationship among them
The structure of every organisation is having linked with the world business functions that
are being performed in organisation. The structure is always made according to the way
functions have to be divided such as in case of functional structure there are different functional
departments such as Human Resource Department, marketing department Finance Department
that actually help in smooth functioning by dividing employees according to such specific
functions only. On the other hand, in case of structural division there are divisions that being
made by management with the help of dividing the organisation according to levels such as top
department metal department operational department. In case of organisations like Morrison
there is use of functional and divisional both type of structure and these are linked with Matrix
structure which consists of both divisions based on performance and scope of objectives.
Anytime there can be complexities in these functional units because a particular employee may
specialise in only one function and this might lead to know as one function unit can not
contribute towards sales of other functional unit so that it leads to leas effectiveness in overall
functioning of the organisation.
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TASK 2
P3 Relationship between various organizational functions
Morrison, which is coming under four big supermarkets of United Kingdom consists of
different range of organisational functions that has developed relations with each other in order
to attain different range of goals and objectives of company. Different interrelationships that
Morrison department carries are presented underneath:
Sales Department and Marketing Department : It has the immediate tie up with Morrison item
and administration and deal individual likewise manages the separate clients. It is significant for
an organization to have successful deals group stronghold producing high volumes of deals. This
division centres around the part of deals procedures and furthermore deal with the business
exercises in an Morrison. A prepared representative which pitch the deals for association and
know about intricate details of their needs. On the other hand, sales office have direct
relationship with promoting group and work together for a business and correspondence is
significant for both the office for smooth working. Advertising division with the help of
appealing showcasing techniques help deals office to build their general deals target, while deals
office give sources to promoting office inside which this office can direct their promoting
capacities. This will successfully help Morrison to accomplish hierarchical objectives.
Human resource department and IT Department:Morrison needs HRM office to play
out their movement in most ideal manner. The office care for the executives and organization
process. It is significant for office to give aptitude workers who can address the regular
difficulties of business condition of a company like Morrison. In respects with Morrison is the
prime obligation of HRM division to have legitimate preparing and advancement program of
representatives working in various office to expand their effectiveness. Including this, IT is most
extreme critical to pick best fit for work for HR to give productive outcome. HR division for the
most part have direct relationship with IT office as they give them gifted and skilled workforce,
while then again IT office offer imaginative and refreshed programming to HR branch of
Morrison that can be embraced by HR office as to build their presentation measure. This will
successfully expand benefit and efficiency of Morrison in order to hit the desired goal and
objectives.
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Research and development department and Finance Department: This is specifically
being considered as one of the crucial department in each association. It is the thing that that
make benefit and clients. Research and development group give the knowledge of future
objectives and characterize whether the business will effectively gain competitive. For Morrison
promoting group ought to recognize the flavour of clients in Retail outlet and concurring they
should offer support to their clients. Including this, finance division successfully give satisfactory
reserve to association Research and development group of Morrison that will adequately help
promoting authorities to lead their showcasing targets. While with appealing showcasing,
Research and development department increment benefit proportion hold of organization that
satisfy chief target of finance sub-sector. Research and development are progressively identified
with fund division since they are the person who monitor deals, benefit and misfortunes. There
are the two fundamental significant division in any association since they bargains in numbers
After examining each and every department and their role or interrelationship with other
organizational functions, it has been concluded that each department are linked with other
departments with the assistance of which they can easily perform their targets. It has also been
said that every department needs to maintain coordination with each other so that they can
internally help each other for the accomplishment of organizational goals and objectives. There
are both positive and negative aspects of interrelationship between various organisational
department which leads towards the attainment of business objectives and targets in an effective
manner.
M2: Analysis of advantages and disadvantages of interrelationship of organisational functions
and impact on the structure of organisation
Advantages:
The inter relationship between different functions of a organisation is very helpful in
increasing the productivity a organisation in maintain overall effectiveness and coordination
among all different departments of a organisation.
It is helping Morrison in escalating their overall profitability structure and helps in smooth
functioning of organisation as a whole.
Disadvantages:
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Each employee has different capabilities and skills and many times there are possibilities
of presence of some internal conflicts because of high amount of competition among the
workforce those are working towards same objectives.
In Morrison above discussed are some of the advantages and disadvantages and according
to organisation structure all the roles and responsibilities differ and affect the overall functioning
of this organisation.
TASK 3
P4 Impacts of the macro environment
In order to perform a business functions in an effective manner, it is very important to examine
the macro environment elements which aid them to determine those external factors who have
great influence on the performance of business organization. In reference to present organization,
Morrison conducted PESTEL analysis so that they can identify the macro environmental factors
which affects the performance of an organization.
PESTEL Analysis
It refers to a strategic technique adopted by large number of organizations in order to
analyze external factors which highly influence a business entity to create strategies so that they
can conduct their functions in an appropriate and effective way. The framework includes
different aspects like Political, social, economic, technological, legal and environmental. In
relation to the present context, PESTEL analysis of Morrison are going to be discussed as
follows:
Political: The business entity has been doing their operations at the marketplace of UK.
It has been identified that the market area of United Kingdom is quite vast which leads to attract
large number of organizations towards them which as a result create competitive for the
organization like Morrison. It has also been identified that the government of UK reduces the
political regulations and corporate tax from 30% to 28%. Therefore, execution of all the political
factor in an effective manner leads towards the success and growth of the company at
marketplace. Along with this, management team of Morrison need to formulate their strategies
and policies as per the political factor framed by the government of UK. In this context, biggest
threat for the businessentity can be terrorist attack or political turmoil, which have the capability
of highly influencing the political stability of country. Whereas opportunity for the company is
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