Analyzing Business Environment: Types, Size, Scope and Objectives

This report provides a comprehensive analysis of the business environment, focusing on various organizational types (public, private, and voluntary), their sizes, scopes, and objectives. It examines the interrelationships between organizational functions and their alignment with the company's structure, using examples like BBC, Unilever, and Age UK. The report also explores the positive and negative impacts of the macro environment on business operations through PESTEL analysis, conducts internal and external analyses to identify strengths and weaknesses using SWOT, and discusses the influence of these factors on decision-making. Finally, it assesses the impact of both macro and micro factors on business objectives, offering a holistic view of the business environment and its complexities.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................4
PART 1............................................................................................................................................4
TASK 1............................................................................................................................................4
P1 Types and purposes of organisations including public, private and voluntary sectors .........4
P2 Size and scope of different organisations .............................................................................6
M1 Assess how the structure, size and scope of organisations can link to the objectives of
business and the products and services.......................................................................................8
TASK 2............................................................................................................................................8
P3 Relationship between organisational functions and how they are linked with the objectives
and structure of the company......................................................................................................8
M2 Benefits and drawbacks of interrelationship between organisational functions and their
impacts on the structure of organisation...................................................................................10
D1 Complexities of different organisation structure and the interrelationship of different
organisational functions............................................................................................................10
PART 2..........................................................................................................................................11
TASK 3..........................................................................................................................................11
P4 Positive and negative impacts which macro environment has on the operations of business
with the help of examples.........................................................................................................11
M3 Using PESTEL model for making the analysis on the macro environment.......................12
TASK 4..........................................................................................................................................13
P5 Internal and external analysis of the organisations for making the identification of the
strengths and weakness.............................................................................................................13
M4 How SWOT influence in making decisions.......................................................................14
P6 Interrelation of strengths and weakness with the external macro factors............................14
D2 Impact of macro and micro factors on the objectives of business......................................16
CONCLUSION..............................................................................................................................16

REFERENCES..............................................................................................................................18

INTRODUCTION
Business environment means the internal and external factors which can make an impact
on the business. It is important for the business to make the consideration of these factors
because business resolves around such dynamic environment which keeps on changing. Internal
factors are those which exists within the business and these factors are controllable in nature and
by making some or the other changes in the business such factors can be made under control
(Markovic and et. al., 2021). But on the other hand, external factors are those which are outside
the business and which is not controllable in nature and for this certain rules and policies have to
be made by the business in order to gain competitive advantage in the market. BBC is a
broadcaster public company which was founded in 1922 and its headquarter is in London, UK.
Unilever is a consumer based company which was founded in 1929 and is having the
headquarters in London, England. Age UK is a charity organisation in UK formed in the year
2009 whose main objective is to help the people and that too after the age group of 60s. This
report will cover types, size and scope, interrelationship of various functions and how they link
to organisation structure, positive and negative impact on the macro environment and the
strengths and weakness of the specific business and their relationship with external macro
factors.
PART 1
TASK 1
P1 Types and purposes of organisations including public, private and voluntary sectors
There are different types of organisations which are there having different objectives and
different legal structure which has been discussed below-
Public organisation- Public organisations are those organisation which are owned and
managed by the government and the government is having the whole rights in managing the
same. They are developed for providing the benefits to the society so that they can bring
economic development (Cherunilam, 2021). For example- BBC

Purpose- The purpose for which public sector organisations is developed is that they want to
bring welfare in the society and want to do good for the public. They does not aim for profits as
their main priority is to do good for the people and not to earn money.
Legal structure- Central government- Central government is that government which is having the
extreme power to make changes and modification compared with that of the needs. Sate government- This level of government is on the state level which focuses on the
issues at that level only and have the power to make decisions on organisations
(Alblooshi, Shamsuzzaman and Haridy, 2020).
 Local government- The objectives of local government is to check that whether the
services are being provided to the communities and not just this ensure sustainable
development.
Private organisation- Private organisation is that organisation who main objective is just to
earn profits and there consideration is not on the welfare of people. It can not be considered as a
federal body but it might be possible that there is some government interference on the
organisation (Cornforth, 2020). For example- Unilever
Purpose- The main objective for which they are established is that they have to earn money and
the employment ratio of the private sector is more than that of the public sector.
Legal structure- Sole proprietorship- Sole proprietors are the one whose owner is just a single person and
carries on the business solely basis. The owner is the one who has to be responsible for its
debts personally. Partnership-It is formed by two or more people who carries on the business operations
together including the profits and losses.
 Companies- A company is made up of group of people which is considered to be a legal
entity and is having a specific objectives which needs to be accomplished by them.
Voluntary organisation- Such type of organisations are developed to work for the charity
and who does not focus on earning lot of money. There main objective is to help people and
there are individuals who are considered to be as volunteers focusing on helping people
(Mazzucato and Kattel, 2020). For example- Age UK

Purpose- The main objective for which the voluntary organisations are developed is that to
provide helps to people without having any objective. They are established to fulfil their work
and mission in a good way.
Legal structure-
 Unincorporated association- It is established by two or more person having the mutual
objective but does not work in the structural way. They provide a greater freedom than
that of company and other organisations (Gogokhia and Berulava, 2021).
 Trust- These are the organisations which provide unpaid services to people and their
main aim is to help people.
P2 Size and scope of different organisations
BBC
Background: The company is a British Public Broadcasting service provider. The company is
headquartered in London and is world's oldest national broadcasting organisation (Agwu.,
2018.). The company is world's largest broadcasting employer by numbers and is employing
over 21000 employees.
Mission: The mission of the company is to educate, inform and entertain the audience of the
company by providing authentic, impartial and high quality content to the viewer and to act in
public interest (Amankwah-Amoah, Khan and Wood, 2021).
Vision: The vision of the company is to become the most creative and innovative organisation in
the world. The company has created wider reach and is working continuously in order to provide
best information to its audience.
Business objectives: The main objective of the company is to improve the lives of people by
providing information to them and also by providing distinct services to the viewers. The
company wants to educate people about the latest developments in the sectors from all around
the world (Filimonau, Derqui and Matute, 2020).
Scope: The main scope of BBC is to provide authentic and high quality content to its viewers.
The focus is on the quality of the information.
Size: The company is world's largest broadcasting station.
Shareholders: The shares of the company is equally divided and managed by six companies
which are Marconi's Wireless Telegraph Company, Metropolitan Vickers Electrical Company,

Radio Communication Company, The British Thomson-Houston Company, The General Electric
Company, Western Electric Company.
Unilever
Background: The company is a British multinational company dealing in consumer goods. The
company is headquartered in London, England. The company owns more than 400 brands and
have presence in more than 190 countries (Arnold, Beauchamp and Bowie., 2019.). The
company was founded in the year 1929 by Lever Brothers and Margarine Unie. The company is
largest producers of soap in the world and include products such as beauty care products,
personal care products, toothpaste, etc.
Mission: The mission of the company is to meet everyday needs of personal care, hygiene and
nutrition. The company wants to add vitality to the life.
Vision: The company wants to make sustainable living a commonplace. The company believes
that it is the best way in which the company can have growth in the long term. The company
wants to promote sustainable living.
Business objectives: The objective of the company is to promote self care and personal care and
wants to provide affordable products to the consumers.
Scope: The scope of the company is to promote quality of life and to help people to feel good
and look good.
Size: The company has 400 brands and has presence in more than 190 countries.
Shareholders: The major shareholder of the company is Gardner Russo & Quinn LLC.
Age UK
Background: It is a registered charity organisation headquartered in London (Ma and et. al.,
2020.). The organisation was founded in the year 2009 and the operations of the organisation
was combined managed by Age Concern England and Help The Aged organisations which are
charity for old age people.
Mission: The mission of the company is to provide companionship, advice and support to older
people (Hernández, Yañez-Araque and Moreno-García, 2020).
Vision: The vision which Age UK has is to provide enjoyable life to the people living in society.
Business objectives: Their main objective is to provide people of older age a qualitative life
which will help them in enhancing their life.

Scope : The scope of Age UK is to provide older people with good money so that they can enjoy
their life in a better way and also to provide them the safety and security in their homes.
Size : Age UK have made the expansion of around 125 Age UK who will be serving England.
Shareholders: The major shareholders of the organisations are corporate partnerships, public
sector grants giving bodies and the trustees.
M1 Assess how the structure, size and scope of organisations can link to the objectives of
business and the products and services
The size, scope and legal structure of the different types of organisation differ from each
other and also they have different purpose and objective. It is critically recognised that
organisations size scope and legal structure is developed on the basis of the company's product
and service they offer to their customers. It is observed that voluntary organisation (Age New)
provide the charitable services and are non-profitable organisation therefore are under the large
size and the legal structure is charitable trust (Amankwah-Amoah, Khan and Wood, 2021). It is
also analysed that private organisations are developed with the objective of earning profit in
exchange of quality products and new products therefore their size is small or large and their
legal structure is mainly partnership and sole proprietorship. The public sector organisations are
either profit earning or non-profitable organisation therefore, they are operated by the
government bodies and their legal structure is as per the government set-up.
TASK 2
P3 Relationship between organisational functions and how they are linked with the objectives
and structure of the company
In organisations like Unilever there are different organisational functions that work together to
achieve organisational objectives. The different functional units have interrelationship that helps
the Unilever to foster the productivity to achieve the objectives. The relationship between the
two different functions are discussed below:
Production and Marketing: the production and marketing functional unit of the Unilever are
the most important organisational functions as both the departments are concerned about the
delivering the product and service of Unilever to the customers (Alblooshi, Shamsuzzaman and
Haridy, 2020). The marketing function help the production functional unit by providing them
information about customer taste and new trends in order to develop products and services

accordingly to meet consumer needs. Both the functions work collaboratively with each other in
order marketing plan is efficient as per the product features and to ensure that production
schedule is appropriate. Both of the department also has work together to make sure that the
product of Unilever is meeting high quality as per the customers expectation.
IT and Finance: The finance department of the Unilever is to manage the cash flow, budget and
all the other activities related to the the maintenance of financial resources. In current business
environment the IT department is important for Unilever in order to accomplish its objectives
and the role of this function is to manage the computer network and systems of the Unilever.
Both the departments work collaboratively with each other in order to make sure that Unilever is
meeting its technology requirements in its financial budget (Hernández, Yañez-Araque and
Moreno-García, 2020). The IT functional unit make sure that the all the financial systems are
upgraded and fully secured and pin protected to maintain security of data. The financial
department provide the IT functional unit with the yearly budget for the new technology
installation and up gradation.
The organisational structures
 Divisional organisational structure: In this type of structure the each functions of the
organisation are grouped together into divisions related to the products or geographies.
Mostly the public sector organisation like BBC use the divisional structure to meet their
organisational objectives. In BBC there is geographical region based division structure as
the company provide the service of Broadcasting in different regions of UK (Mady and
et. al., 2020).
 Functional organisation structure: In this type of organisation structure the
organisation is divided into different functional units according to their role and
responsibility in organisation to meet organisation objective. In Unilever also there is
functional organisation structure as per their products and service to the customers.
Through different functional unit company effectively focus on each department and their
performance and also all are aligned towards the organisation objective to serve the
customers quality product (Filimonau, Derqui and Matute, 2020).
 Matrix organisation structure: In this type of organisational structure the staff of the
organisation is grouped on the basis of the organisation two operational framework. Most
the voluntary organisation like Age New a charitable trust has a matrix organisational

structure. The company has an objectives of helping the aged people of the UK who are
homeless and require the essential things like shelter and medication. This structure is
useful to company in achieving this objective as their work for two area providing homes
and second for medical facilities to age people (Scarpellini and et. al, 2020).
M2 Benefits and drawbacks of interrelationship between organisational functions and their
impacts on the structure of organisation
From the above information some benefits and drawbacks of the interrelationship of the
organisational functions of Unilever are recognised. The benefits are: better decision making
process is occurred when two different organisational functions work together. It is also
beneficial to Unilever in fostering the communication between the different units which also
develops the team working and peer to peer learning. The drawbacks are internal disputes due to
lack of understanding and communication. Also it provide the disadvantage to Unilever in terms
of productivity as the there is difference in opinion which slow down the decision- making (Aziri
and Ismaili, 2020). But is analysed that advantages of interrelationship empowers the drawbacks
theretofore is very effective to have interrelationship between the functional units of Unilever.
D1 Complexities of different organisation structure and the interrelationship of different
organisational functions
It is analysed that with the interrelationship of functional units provide the organisations
like Unilever an advantage to foster their productivity but it also has its own complexities that
reduces the company's productivity and internal environment. The organisational structure of
Unilever also posses some complexity such as the it sometimes seemed as the hurdle in the
overall development of organisation keeps the employees in competitive nature and also there is
lack of coordination (Ullah, 2021). The interrelationship of the functional units of Unilever has
some complexities such as difference in thoughts and ideas of execution of work, territorial
disputes, takes time in understanding each other perspective therefore, it become time consuming
during the time of emergency.

PART 2
TASK 3
P4 Positive and negative impacts which macro environment has on the operations of business
with the help of examples
Pestle analysis is the strong tool to analyse the macro environment factors and its impact
over the business operations. The pestle analysis of Unilever is discussed below:
Political factors: Unilever plc is the multinational organisation headquarter in UK therefore, the
political changes is huge concern for the company (Hamdan and Daim, 2020). Tax breaks, tariff
barriers, market regulations etc. are the reason that can impact the Unilever and its operations.
The Unilever is the FMCG organisation therefore, has to abide with food and drug regulations of
all country. The Brexit has adverse impact on the Unilever as the company is the UK based and
the UK and EU referendum hit the business of Unilever hard due to low operational
performance. Therefore, the company's tactical strategy to maintain strong relations with
different countries government help in creating friendly reform to avoid any opposition for
trading.
Economic factors: When working in the FMCG industry the organisation like Unilever pays
huge importance to state of economy. UK has strong economy earlier but due to COVID-19 the
economy of UK faced a downfall and also the customers disposable was decreased which
affected badly the sales and revenue of Unilever (Mazzucato and Kattel, 2020). But there was
also a favourable side of this as the company is large organisation therefore, company employed
many people to increase its brand value and also to gain government support.
Social factors: The Unilever is the multinational FMCG organisation therefore, pay attention to
different social demographic factors like language, age, taste etc. the Unilever has positive
impact of this factor as the company show its advertisement in multiple languages to attract
customers. Also with COVID-19 the company has become the biggest producer and seller of the
soap. This also helped the company to develop new products like sanitizers, bacteria kill hand
wash etc. Through all this company is effectively meeting customer requirements (Olutade,
2020).
Technological factors: Unilever is seemed to be slow in adoption of the Technology. In order to
survive in the market and to stay ahead of the competition the company needs to keep pace with

technology. The technology creates the negative impact over the Unilever as company is
ineffective in setting up the automated facility for their current operation as it is still focused in
using traditional methods of production.
Legal factors: the legal factors like employment laws, food regulation acts etc. creates the huge
impact on Unilever as the company operation in several nations and also operates in FMCG
industry. This factor plays major role in the Unilever organisation because company has large
size product portfolio of brands therefore, company needs to be aware about all regulation in
order to stay ethical. The company ethically follow all legal requirements which has created a
good brand image and also build a trust among customers and stakeholders about company's
customer's loyalty (Nayeem, 2020).
Environmental factors: The environment concern among the customers and government of UK
has improvised many environment safety regulations in the UK organisation in order to reduce
the impact of the operations of organisation over the planet. This has bring a major influence
over the operation of Unilever as company transformed many of its operations completely
environment friendly and also adopted a no use of plastic in organisation. The company has also
aimed to reduce the carbon footprint (Cornforth, 2020). Through all this company is able to
represent itself as the sustainable and environment friendly organisation in UK.
M3 Using PESTEL model for making the analysis on the macro environment
It is critically analysed that Unilever has great relations with the government of other
countries that bring the positive impact to the organisation as through this company is able to
operate internationally without any barriers or oppositions. The economic stability of Universal
is strong but the UK has downfall in economy due to Covid-19 which is directly impacting the
revenue and profit of the company negatively. The social factors bring the positive impact to the
Unilever productivity and profitability as new products are developed. Technology is matter of
opportunity but for Unilever its is weakness as company is not optimally utilizing the technology
and its development. Therefore, it is suggested to Unilever to adapt and keep pace with
technology in order to sustain competitive market (Cherunilam, 2021). The legal factors bring
neutral impact on Unilever's performance as company comply with all legal rules and laws of all
country. The environmental factors are the positive factors as they foster company's sustainable
image in market and also let's the company to behave ethical.