Business Environment: Types, Purposes, Functions & Interrelationships

This report provides a detailed analysis of the business environment, focusing on different types and purposes of organizations, including public, private, and voluntary sectors, and their legal structures. It explains the size and scope of various organizations like Toyota and NHS, highlighting their vision, mission, and business objectives. The report also explores the relationship between different organizational functions such as marketing, finance, HR, and operations, and how they link to organizational objectives and structure. Furthermore, it examines the positive and negative impacts of the macro environment on business operations, supported by specific examples, and conducts internal and external analyses using SWOT and PESTLE models to identify strengths, weaknesses, and external factors influencing decision-making. Desklib provides access to similar solved assignments and study resources for students.

Business and the Business Environment
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Contents
Introduction................................................................................................................................4
Task 1.........................................................................................................................................5
Introduction................................................................................................................................5
P1. Explain different types and purposes of organisations; public, private and voluntary
sectors and legal structures.....................................................................................................5
P2. Explain the size and scope of a range of different types of organisations.......................8
P3. Explain the relationship between different organisational functions and how they link
to organisational objectives and structure............................................................................15
M1. Analyse how the structure, size and scope of different organisations link to the
business objectives and product and services offered by the organisation..........................17
D1. Provide a critical analysis of the complexities of different types of business structures
and the interrelationships of the different organisational functions.....................................18
Conclusion............................................................................................................................20
Task 2.......................................................................................................................................21
P4. Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.........................................................................21
P5. Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses.....................................................................................................24
P6. Explain how strengths and weaknesses interrelate with external macro factors............26
M2. Analyse the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have upon organisational structure.................................27
M3. Apply appropriately the PESTLE model to support a detailed analysis of the macro
environment within an organisation.....................................................................................28
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M4. Apply appropriately SWOT/TOWS analysis and justify how they influence decision-
making..................................................................................................................................30
D2. Critically evaluate the impacts that both macro and micro factors have upon business
objectives and decision-making...........................................................................................31
Conclusion................................................................................................................................33
References................................................................................................................................34
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Introduction
In the reported study the various concepts linked to the business atmosphere of various
types of organisation has been explained. Business environment states to factor that
distributes a firm’s ability to build and preserve positive customer relationships. This
report includes various types and purposes of the organisation. Organisational functions
play an important role in fulfilling the organisational objectives and goals in an effective
manner. The macro environment is major and uncontrollable factors that affect the
decision process of organisation. Toyota is a Japanese multinational automotive
manufacturing company which provides a wide range of products to their customer. The
positive, as well as negative impact of macro environment, is discussed in this report.
SWOT analysis is used for identifying the strength and weakness of organisation. The
structure, size, and scope of organisation assist in increasing the profit and productivity
rate of services. PESTLE model is used for analysing the macro environment within the
organisation.
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Task 1
Introduction
This report introduces the different types and purpose of the organisation along with its
legal structure. The legal structure of organisation helps in determining its behavior and
characteristics in a systematic way.
P1. Explain different types and purposes of organisations; public, private and
voluntary sectors and legal structures.
Various types organisation is as follows:
Public sector- Public sector is that part of a financial system that is measured by national,
state or limited government. The National Health Service (NHS) is the openly sponsored
national healthcare system in London. The services of NHS are growing rapidly in many
regions. NHS is the largest public sector firm in the UK where the number of employees is
approx. 1,400,000.
Legal structure- NHS is a partnership firm in which the employer and government are
responsible for risks as well as investment in the business (Mazzucato, 2015).
(Source: Myhealthlondon, 2018)
Purpose of public sector
 Further development and growth of organisation by using funds.
 Provide a benefit to all of society rather than just the separate person who uses the facility.
Private sector- The private sectors are usually free from the government control. It
includes all for-profit trades that are not maintained by the government bodies. Toyota is
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an automobile manufacturing company headquartered in Japan. Their operating income is
approx. 27.6 trillion (2017). The products and services of Toyota are sold in various
international stores (Toyota, 2017).
Legal structure- Toyota is a sole trader firm in which the owner is responsible for the
overall risk and funds for the organisation.
(Source: Toyota (GB) PLC, 2014)
Purpose of private sector
 The main purpose of the private sector is to continue in the marketplace by making a profit.
 Providing a variety of product and services for market expansion.
Voluntary sector- The voluntary sector includes charitable organisation. It is sometimes
also known as a third-party sector because it exists in neither in the community nor in
private sector. 2Way development is a national volunteer agency which is generally
funded by statutory bodies (2Way Development, 2016).
Legal structure- The legal structure of 2Way development is an unincorporated
association in which an agreement is made between groups of an individual for a reason
other than to make a profit.
(Source: 2Way development, 2013)
Purpose of voluntary sector
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 Expand and develop culture.
 Create communal wealth (2Way Development, 2016).
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P2. Explain the size and scope of a range of different types of organisations.
Private sector (Toyota)
Background
Toyota is Japan automobile international retailer in Japan. It specializes in selling a variety
of cars to their customers. Toyota was established in 1933 by Kiichiro Toyoda. The
overall income of Toyota is ¥28.40 trillion (2016).
Products and services
Toyota provides a wide range of vehicles to their customer. Toyota also manufactures
luxury cars and engines (Toyota Motor Corporation, 2018).
Size and scope
Size Scope
Millions of customers are using Toyota
products all over the world. 333,500
employees are working within Toyota.
More than 1000 outlets are located all
over the world (Toyota Motor
Corporation, 2018).
The scope of Toyota is to make a relevant,
profitable and truly sustainable retailer.
Vision, mission and business objective
Vision Mission Business objective
The vision of Toyota is to
create outstanding earth-
friendly products for a
Toyota’s mission is to
attract customers with
high-valued products and
The business objective of
Toyota is to build a
sustainable business
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sustainable growth. services. throughout consistent.
Organisational and legal structure
Organisational structure-
(Source: Author)
Legal structure- Toyota follows the independent legal structure in which whole work is
performed by an individual. The employer of Toyota is responsible for the issues and
achievement within the firm.
Stakeholders
The external stakeholders of Toyota are customers, community, government who provides
opinion and funds for the development of the firm.
Public sector (NHS)
Background
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Chief Executive
Customer and
Communication
Executive
Flight operation
Management
board
Customer
HR manager
Investment

National Health Service the largest public healthcare system in the world. Simon Stevens
is appointed as chief executive of NHS England. NHS was created in the year 1948 by
health secretary Aneurin Bevan (NHS Choices, 2015).
Products and services
NHS in England provides emergency and urgent care to their customers. They also their
patient by providing prescribed drugs at low cost.
Size and scope
Size Scope
NHS directly employees around 1.2
million staff who serve their customer
with a different facility.
The scope of NHS is to offer a range of
service to the disabled individual (NHS
Choices, 2016).
Vision, mission and business objective
Vision Mission Business objective
Enable people to live
healthier through high-
quality continuous care.
To provide care and
services to the disabled
family and patients.
To promote best clinical
practice in the innovative
delivery of framework
(2Way Development,
2016).
Organisational and legal structure
Organisational structure
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(Source: Rivett, 2017)
Legal structure- The legal structure of NHS is based on the limited liability of members.
Stakeholders
Local government, funders, and trust are the main stakeholders of NHS.
Voluntary sector (2Way development)
Background
2Way development is a UK based social enterprise which offers volunteering placement to
their customers. 2Way development works in Asia, Africa with over 150 partner charities.
Products and services
NHS provides career and coaching services to their customer in the context of education,
human rights, and environmental conservation.
Size and scope
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Size Scope
2Way development has placed over 400
volunteers all over the world (2Way
Development, 2016).
Their scope is to provide services to the
people of the different region.
Vision, mission and business objective
Vision Mission Business objective
Their vision is to adopt
new ideas and methods for
facing the challenge.
2Way development wants
to improve knowledge and
health by helping
innovative ideas to
succeed.
The business objective of
2Way development is to
build the capacity of
partners through skills
sharing, rather than
sharing essential services.
Organisational and legal structure
Organisational structure
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