Business and the Business Environment Report - HND, Feb 2020

This report provides a comprehensive analysis of the business environment, examining different organizational types, including public, private, and voluntary sectors, and their respective legal structures. It delves into the interrelationship of various business functions and their connection to organizational structure, using examples like Marks and Spencer, Crown Prosecution Service, and Oxfam. The report further explores the positive and negative impacts of the macro environment on business operations, incorporating PESTLE and SWOT analyses to assess internal strengths, weaknesses, and their correlation with external factors. The report covers the size and scope of different organizations, their missions, visions, and objectives, offering insights into how businesses operate and adapt to competitive scenarios. The report provides a detailed overview of the business environment and its impact on organizational success.

Business and the
Business Environment
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Table of Contents
INTRODUCTION...........................................................................................................................4
L01 Explain the different types, size and scope of organisations....................................................4
Different types and purpose of firms: public, private and voluntary sector and legal structures 4
Size and scope of different organizations....................................................................................7
LO2 Demonstrate the interrelationship of the various functions within an organization and how
they link to organizational structure..............................................................................................10
Relationship between several functions of firms and their interrelation to organizational
structure and objectives..............................................................................................................10
LO3 Use contemporary examples to demonstrate both the positive and negative influence/impact
the macro environment has on business operations.......................................................................11
Positive and negative impacts the macro environment has upon business operations..............11
LO4: Determine the internal strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors................................................................................14
Internal and external analysis of particular firm to identify strength and weakness..................14
Interrelation of strength and weakness with external macro factors..........................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18
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INTRODUCTION
Business environment is the process of having sum total of several factors like internal
and external factors that consists client, employees, demand and supply, owners and many more.
All these factors directly influence different types of functions and operations within the business
along with their overall managing systems. On the other side this assorted factors also influence
working environment conditions of business. Apart from this business environment commonly
brings so many changes within the working process of employees that have positive impact on
them. With the help of this business can be sustained for long period of time into competitive
scenario. Furthermore, this assignment is based on different types of organization such as public
(Crown Prosecution Service), private (Marks and Spencer) and voluntary (Oxfam). Along with
this report includes different types, scope and size of firms and interrelationship of several
functions and their linked with organizational structure. At last, PESTLE analysis and SWOT
analysis in the context of firm will get covered (Avramenko, 2012).
L01 Explain the different types, size and scope of organizations
Different types and purpose of firms: public, private and voluntary sector and legal structures
According to the competitive advantages so many organizations are dealing with
different types of goods and services in order to achieve targeted goals. There are so many firms
who follow assorted kinds of structure, those are as follows:
Private organization: These sorts of firms mainly considered as the person, partnership and
corporation that all are managed and controlled by public with the aim of achievement of
targeted goals in a successful way. Herein, Marks and Spencer has been selected as private firm
which is one of the best British multinational retailers and it is headquartered in London, United
Kingdom. It was formed in 1884 through Thomas Spencer and Michael Marks. It deals with
essential items like clothing, home appliances etc. With the help of dealing with such kind of
items they can achieve their goals through satisfying entire needs and demand of people. This
private firm does not include government pressure so that they always make their own decision
in order to sustain at market for long time (Berg, Kilambi and Siebel Systems Inc, 2014). For
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example: If talk about Apple it is one of the best private firm who produce ample number of
mobile phones, software, computers, Mac book and many more. In order to make these assorted
goods they are not require to take permission from government and make their own decision
towards it. With the help of this they can achieve their goals without facing any government
challenge at marketplace. It develop huge profit for them as private company made for earn
profit.
Legal structure: Marks and Spencer follows organizational legal structure in order to
have limited management levels between employee’s front line and administrative level. With
the help of following such kind of structure organization is able to encourage workforce to take
proper decision making process. Due to less management level of communication becomes
easier which allows frequent changes as well as problem solutions (Ballard and et. al., 2012).
Cooperatives: It is the process that depends on person by whom they are able to meet
social, economic needs of consumers and bring so many functions or approaches to implements
on them.
Purpose: Marks and Spencer having aim to offer its goods and services within general
stores so that upper as well as middle class people can buy their goods on time. Apart from this
they want to add more decorating items within their firm so that they can achieve their goals.
Stakeholders: Marks and Spencer have numerous stakeholders such as civil society
firms, customers, employees, investors and media by which they can get profit at competitive
scenario.
Public organization: Public sector mainly encompassed of firms that are operated and owned by
government as well as exist in order to offer services for people within society. Similarly, public
sector do not made for earn profit. In this sector, Crown Prosecution Services has been chosen as
public firm which is great public agency used for conducting criminal prosecution at England
and Wales. At present, this public agency having approx. 6,000 people as workforce in order to
give huge satisfaction to people through providing better services. For example: National Health
Services is considered as best public firm that commonly improves and considered health of
people in order to give them safety tools towards their health (Bharadwaj and et. al., 2013).
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Legal structure: CPS mainly follows ample number of evidence and police as legal
structure by which they can take accurate decision and able to communicate their different
views.
Sole traders: These are self-employed person who run their own business and does not
consists any kind of legal identification as well as severalty work for society.
Proprietorship: In this two or more people works together along with have
responsibility to manage each function of firm at marketplace.
Purpose: Main purpose of CPS is to overcome crime from the nation through taking
helps from police in order to satisfy people every time. With the help of this they can get proper
information and achieve goals.
Stakeholders: In CPS there are so many people who are considered as stakeholders and
associated with government agencies, financial institutes that helps firm to take strong decision
making process for better growth of society (Hilton and Platt, 2013).
Voluntary Organization: It includes particular group who signs the agreement as per their own
choice is called voluntary firms. With the help of this they can fulfill their aim and achieve
targeted goals. It includes professional associations, learned societies, trade unions and many
more. In the context of Oxfam, it consist several kind of alliances along with twenty independent
charitable trust that works together to reduce poverty from nation. It was established in 1942 by
Cecil Jackson-Cole in England. Thus, this firm is not for profit and seeks human profit always.
For example: NGO’s are effective volunteer firms who generally offer better services to people
and fulfill their needs and wants effectively.
Legal structure: Oxfam apply hierarchical structure for developing best values, beliefs,
norms and trust into the mind of people so that they can build strong community without any
issues. There are few aspects of this structure, which are:
An Unincorporated association: It is known as large number group of people who works
together to achieve desired goals effectively.
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Legal needs: There are so many laws and legislations like legal advice, charity, checklist
and so on.
A Trust: It is essential for person to develop trust among representative firm so that they
can get encourage and able to produce more ways through investing funds to make better
services for people.
Partnership: By following such kind of legal structure Oxfam is able to keep numerous
group of people as partners to provide better services and make each person happy.
Purpose: The main aim of Oxfam is to find out better solutions to overcome several
issues which are faced by person within society. By establishing so many alternatives they can
overcome poverty from the nation.
Stakeholders: In regards with Oxfam, it includes volunteers, founders and employees.
All this helps to firms so that they can make better decision in different modes (Janita and
Miranda, 2013).
Size and scope of different organizations
It is essential for very firm to make proper scope, size, mission and objectives which is
considered as most helpful approach for business. With the help of this firms can build their
strong image as they have purpose to achieve targeted goals. There are different scope and size
of so many companies, those are mentioned below:
Private organization: These sorts of firm always have aim to earn profit by increasing
their sales and revenue in a highest manner. In regards with Marks and Spencer, there is several
kinds of business aspects followed by them, which are:
Background: Marks and Spencer is biggest retailer of household, food and clothing
items along with financial services. It is global brand thus, they have good image in front of
people at marketplace (Prins and Cybercrime, 2011).
Mission: Main mission of this firm is to make or provide inspirational quality of their
goods that increase their chance to spread their business in a perfect way.
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Vision: The vision of this firm is to works on their organizational goals so that they can
successfully increase their business in a best mode.
Objectives: Main objectives of M&S are to bring few innovative changes within its
goods and services by which they can attract the customers in a proper way.
Products: Goods and services of this firm include home appliances, clothes, food items
and many more.
Size: Marks and Spencer operates its overall stores internationally so that size of this firm
is large by which they can achieve their goals.
Scope: Through dealing with ample number of goods and services they are able to
operate its functions globally so that scope of Marks and Spencer is very wide.
Structure: Marks and Spencer generally follows flat organizational structure in order to
overcome gap between employees and firm so that they can accomplish its management goals.
Along with this, directly influence employees positively and encourage them to achievement of
targeted goals.
Thus, private firms always works for earning huge profit by which they can make their
goodwill and able to build strong relations with ample number of customers within short period
of time (Vitale, 2011).
Public organization:These types of firm have government control or it is controlled and
managed by governmental agencies. In regards with CPS it is the best public firm that includes
different types of elements, those are as follows:
Background:Crown Prosecution Services is great public firm which is used to conduct
criminal persecutions and registered in Wales or England. It was formed in 1986 with the help of
around 6,000 people at that time. Along with it makes various policies for human safety by
which they develop positive environment.
Vision:Main vision of CPS is to develop strong relations with humans so that they can
understand their problems effectively.
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Mission:To offer several safety methods of tools so that people can live properly.
Objectives:The main objective of CPS is to provide several kind of protective tools by
which they can satisfy people needs and wants.
Goods and services:CPSgenerally deals with so many tools which is used for people
safety.
Size: CPS work with the help of lots of people that attracts the ample number of people
within short period of time.
Scope:This firm has huge scope as it offer different types of safety tools for people.
Structure:CPS follows hierarchical structure by which they are able to take better
decision towards overcome crimes from societies.
From the above given several size and scope of CPS it has been said that it is large public
firm which works for overcome crime from the nation.
Voluntary organization:In regards with Oxfam, it is associated with 20 independent charitable
trusts which is used to remove poverty from the nation. It was founded in 1942 globally along
with it is not for profit it develops as a safety for people.
Mission: Main mission of this firm is to formulate better techniques for overcome
poverty and make every individual happy (Prins and Cybercrime, 2011).
Vision: To overcome poverty worldwide.
Objectives: Business objective of Oxfam is to provide numerous services that improve
living standard of people within society.
Size:This organization dealing with its services globally so that they have effective size
within societies.
Scope:Having huge workforce always increase the scope of this organization.
Structure:Oxfam use simple organizational structure in order to bring more
improvement within its services.
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From the above mentioned several kind of elements this can be said that Oxfam have
large number of employees as workforce that makes them attractive and create great interest of
people towards them. It helps them to remove poverty from the nation.
Differences between Marks and Spence, CPS and Oxfam on the basis of their size structure and
objective:
Particular Marks and Spence CPS Oxfam
This is trustee
organization which
follow simple
structure of
organization to run
their business
activates
Type of organization Marks and Spence
establishes and
registered as private
organization it is large
sixe of organization.
Cps is a famous
public organization as
in this the organizat. It
is operated and
regulated by
government.
It is established in
1942as indieepnede
organization which is
run BY Oxfam
international.
Structure Marks and Spencer
follow flatter
organization structure
in which the layers of
hierarchy structure cut
and decreed neurotic
structure of the
organization.
CPS it uses line
organization structure
in which all the
manger and
employers are
responsible towards
their subordinates.
Scope Marks and Spencer is
the multinational
retailer organization
which is main
objective is to
increase its target
market area by
becoming leading
industry in clothes
and fashion.
CPS is service
organization which is
not larger
organization but the
aim of this company
to proves best public
investigation service
and control crime
issue in UK.
It is trust which is
main object is not to
earn profit but to
control or prevent
poverty problem by
stating and awaking
people towards the
issue of poverty
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Analyze how the structure, size and scope of different organizations link to the
business objectives and product and services offered by the organization
These different types of associations are defined by their size, scope and affiliation with their
authoritative goals, capabilities and administrations. For this purpose we will study about three
different types of organizations and their different aspects:
Sole trader
There is a definite expansion in the society as there is the ability to make choices with the owner
and there are low needs and subsidies that make it possible to start something new. Authoritative
implementation and the exercises are strongly linked to the goals of the society.
Partnership
In the current business climate, there are a number of associations between different societies
that are getting powerful results and making it bigger and more fertile. You must have definite
control and advice between these exercises and goals in order to obtain productive results in the
society. The structure, size and exercises of the association company successfully affect the
articles and administrations provided by the organization.
Organization
Authoritative destinations affect the various perspectives that affect society's broad
appropriateness. Several exercises are identified during the time spent in creating articles and
offering types of assistance in the society that may affect the overall performance of the society.
LO2 Demonstrate the interrelationship of the various functions within
an organization and how they link to organizational structure
Relationship between several functions of firms and their interrelation to organizational structure
and objectives
Interrelationship between so many firms shows their appropriate identities and values
within the marketplace. In regards with Marks and Spencer there are so many functional units
those are interrelated with each other. Along with this, firm is able to attain their goals through
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performing successfully within competitive scenario. There are some departments of respective
firm, those are mentioned below:
Marketing and Finance: Finance department plays significant role within the company.
It helps firm to give better budget statement by which marketing department can operate their
services accordingly. In regards with Marks and Spencer, finance functional unit develop
effective fund statement for them so that they can manage their business accordingly. It shows
the interrelation between marketing and finance department (Weiss, 2014).
Marketing and HRM: Human resource plays significant role within every firm as they
have responsibility to recruit high skilled employees to achieve targeted goals. In regards with
Marks and Spencer, HR department always hire and select knowledgeable people through
consulting with marketing department. Thus, it shows their interrelationship of both departments
that increase firm’s value with high profit.
Organizational Structure:
Illustration:1Organisational structure
Source: Organisational structure 2018
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