Business Environment Report: HND Business, Level 4, Task 1

This report provides an overview of the business environment, focusing on different types of organizations. It begins by defining the business environment and then distinguishes between profit-making and non-profit organizations, highlighting their respective aims and operational approaches. The report further explores the size and scope of organizations, differentiating between private, public, and voluntary sectors, and providing details on their membership structures and funding models. The private sector, with its focus on profit maximization, and the public sector, often driven by societal needs, are contrasted with the voluntary sector, which relies on investors and sponsors. The conclusion underscores the dynamic nature of the business environment and the necessity for management to adapt to changes. It stresses the importance of understanding external factors to mitigate potential negative impacts on the business. The report is supported by references to academic research on business strategy and environment.

Business Environment
(TASK 1)

TABLE OF CONTENTS
• Introduction
• P1 Different types and purposes of organisations
• P2 Size and Scope of various types of organisations
• Conclusion
• References

TABLE OF CONTENTS
• Introduction
• P1 Different types and purposes of organisations
• P2 Size and Scope of various types of organisations
• Conclusion
• References

INTRODUCTION
Business environment can be defined as the place where
various activities and operations of the business are being
carried out in an effective manner so as to achieve the
goals and objectives of the organisation.

Different types and purposes of
organizations
 In the current business environment, there are
several companies who are conducting their
business operations within their sector.
 To earn more and more profits and fulfilling
their aims and objectives as well.

Profit making company
It can be defined as body which is being established
with the aim of earning profits only. The main
target of these kinds of companies is to increase
their revenue by selling their goods and services in
the market.

Non Profit Organization
 It comes under those kinds of companies where selling
of products and services is done without having an
aim of earning profits.
 The money which is received by selling goods is not
shared with the owner instead it is reinvested in the
companies.

NGO
 It is considered as a non-governing body whose
main aim is to do welfare of the society and get
established there as well.
 These kinds of businesses are generally done by
single individuals only.

Size and Scope of various types of
organizations
Private Sector Companies:
Size of private companies can be described as :
• Minimum Members- 2
• Maximum Members- 50.

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Public Sector companies
The size of public companies are as follows :-
• Minimum Members- 7
• Maximum members- Unlimited

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Voluntary Sector
In these types of companies, money is operated through
investors and sponsors. Oxfam is a voluntary
company which is registered in UK and more than 15
charitable trust are being working under this.

Conclusion
From the above presentation, it can be concluded that
business environment is a very important part of a
business organisation since from here only all the
resources are obtained and all the operations are being
performed. These kinds of environment are considered as
dynamic in nature and changes with time so it is required
that the management should understand all of these
changes so that it does not have any bad impact on them.

REFERENCES
Agarwal, R., Grassl, W. and Pahl, J., 2012. Meta-SWOT:
introducing a new strategic planning tool. Journal of Business
Strategy. 33(2). pp.12-21.
Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011. Big
constraints to small firms’ growth? Business environment and
employment growth across firms. Economic Development and
Cultural Change. 59(3). pp.609-647.
Auzair, S., 2011. The effect of business strategy and external
environment on management control systems: a study of
Malaysian hotels. International Journal of Business and
Social Science. 2(13).

Thank You