Business Environment: Public and Private Sector Analysis Report

This report provides a comprehensive analysis of the business environment, focusing on both public and private sector organizations, specifically GM Motors and the BBC. It begins by defining the business environment and its key influencing factors, such as consumers, suppliers, and market conditions. The report then delves into different types of organizations, including public, private, and voluntary sectors, outlining their purposes and legal structures. A significant portion is dedicated to examining the size, scope, and objectives of the BBC and GM Motors, including their organizational structures and stakeholder relationships. The report further explores the interrelationship between organizational functions, such as R&D, marketing, and HR, and how they link to overall business objectives. It also identifies the positive and negative impacts of the macro environment, including political, economic, social, and technological factors, on business operations. A detailed SWOT analysis is conducted for both the BBC and GM Motors, highlighting their strengths, weaknesses, opportunities, and threats. Finally, the report examines the interrelationship between external macro factors and the internal strengths and weaknesses of the organizations, providing a holistic view of their operational environments.

BUSINESS AND THE
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
P1. Different types of organisations with their Purposes and Legal Structures..........................3
P2. Size and Scope of various types of Organisations................................................................5
P3. Explain the relationship between different organisation function and how they link to
organisation objectives and structure ?
P4. Identify the positive or negative impact the macro environment has upon business
operations, supported by specific examples?
P5. SWOT Analysis of Both Public and Private Sector Organisation......................................11
P6. Interrelationship of External Macro Factors with Strengths and Weaknesses...................13
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1
.........................................................................................................................................................2

INTRODUCTION
The term "business environment" refers to any influences that are not in control to
organisation. Respective forces involves various elements such as consumers, investors,
suppliers, end-users, technology, market circumstances, and other factors that impact an
organization's performance . The Company that was selected under the project is big private
organisation named GM motors. It is a manufacturing concern who designs as well as selling
vehicle and their parts. It was established in the year 2009. The topics t6hat are covers under the
assignment are the size, extent, purpose, and legal frameworks of governmental, private, and
non-profit organisations, as well as their relationships with other organisational divisions. Also
covered was the interaction between external macro issues and strengths and weaknesses.
P1. Different types of organisations with their Purposes and Legal Structures
. The following are examples of different types of organisations:
1. Public Sector Organizations : Organizations that are owned and sponsored by the
government for general public fall under this category. The basic goal of non-profit
organisations is not to make money. They concentrated on the public's and society's
social welfare. The BBC is an example of a government-run organisation that
broadcasts news throughout the world.
 Purpose –The goal of a public organisation is to provide services to the broader public
while making the best use of available resources.
 Legal Structures
BBC is a central government owned public sector organisation.
A .Central Government - They receive revenue from the people in the form of income
tax.
B. Local Government — They collect revenues through Community Charges, which
commonly called as Council Tax (Colenso,2012).
C. State Government - They had specialised authority over certain ministries.
The BBC is a public sector organisation controlled by the central government.

2. Private Sector Organizations – This sector includes those organisations which are
established and controlled by the private individuals. The owner of private organisations can be
either a single individual or a group of individuals. For example –GM motors limited company
engaged in manufacturing businesses in different countries such as US,UK and may others.
 Purpose - The goal of private companies is to make a profit while also providing enough
competition to those organisation which is of public sector causing them to enhance
efficiency as well as effectiveness.
 Legal Structures –
a. Sole Proprietorship : Sole Proprietorship: In this case, a person delivers goods and
services to clients for the sole purpose of profit. In numerous types of companies,
such as taxi driving or trade, acquiring a licence from the local administration is
required.
b. Partnership :.A partnership is a group of people who work together. The legal
responsibilities of a partnership are comparable to those of a single trader. In addition,
the partners must sign a partnership agreement that legally binds them to pay debts or
share earnings in an agreed-upon proportion.
c. Limited Company : To become a limited corporation, the entity must be registered.
The profit of a limited business belongs to the corporation, not the shareholders. The
gains are distributed to shareholders in dividends form (Deshpande, 2018).
Corporation tax is such type of tax which company must pay every year on its
profits
Eg, GM motors is a limited company and is governed by company laws.
Voluntary Organizations –Voluntary organisations are made up of a group of people who
voluntarily choose to create an organisation in order to achieve a goal. Oxfam is a multinational
humanitarian organisation that strives to alleviate poverty in the United Kingdom.
 Purpose : The goal of a voluntary organisation is to seek to improve social welfare. In
this improvement is not only to make in individual but it tends to develop in terms to
make growth in society also.
 Legal Structure –

a. Trust –Because the trust is not a legal body, it is unable to engage into agreements in
its own name. As a result, the trustees are exposed to personal culpability.
b. Unincorporated Association This group is not a legal entity. As a result, there is no
responsibility limitation because they engaged into the arrangement on behalf of
charity and are tends to be accountable personally.
Oxfam is a non-profit organisation founded as trust.
Growth of International Business Environment
Asthe continual manufacture of comparable items, the local market has reached saturation,
increasing the expansion in overseas markets. In recent years, the implied trade barriers imposed
by the government have opened the way to doing business on a worldwide scale. Also, in order
to achieve long-term profitability. Businesses began to diversify their operations on a worldwide
scale.
P2. Size and Scope of various types of Organisations
British Broadcasting Corporation (BBC) : The BBC is a government-owned
corporation. They are recognised as the world's largest broadcaster . The organisation BBC is
supported by the BBC licence fee, which is paid by all homes in the United Kingdom.
 Background: The BBC is a public-owned corporation founded in 1922 and funded by
television-owning families and companies in the United Kingdom. It broadcasts nine
television channels as well as radio. The BBC's trademark is TV licencing.
 Product or Services offered : BBC has nine national channels available on Television,
including BBC One, BBC Two., BBC news, BBC Online, BBC iPlayer, and other
similar services are available.
 Size: The number of employees in British Broadcasting Corporation is more than 20,000
(The BBC - Statistics & Facts. 2017).
 Scope: The BBC's scope might include expanding in new regions, such as China and
India, where they may focus on technology as well as to entertainment.
 Vision: The BBC's mission is to become the world's most creative organisation.

 Mission: Through its programmes and services, they aim to enlighten, educate, and
amuse people. The BBC's mission is to deliver specialised educational programming to
individuals in the United Kingdom and throughout the world, as well as unbiased news
and& information so that to support people and try to committed with the world.
The British Broadcasting Corporation employs above 20,000 people as their employee.
 Business Objectives: The objective of establishing BBC is to provide specialised content
of education across the UK and other parts of world and providing impartial news and
information to help people understand and engage with all world.
 Stakeholders: Presenters, Program editors , BBC Trust , local community , government
are the internal and external stakeholders of BBC (Hamilton,and Webster2018).
BBC internal &external stakeholders include programme editors, presenter, the local community,
bBC trust and the government.
OXFAM:
Oxfam is a NGO that does a variety of things such as fighting poverty and responding to
natural catastrophes.
• Background: Oxfam is a sort of volunteer organisation structure that is a worldwide
organisation that seeks to alleviate poverty unjustly. It is a non-profit organisation that
engages in activities such as poverty reduction, disaster assistance, and so on. Services and
product: Oxfam fights for fair trade, education, health, poverty, natural catastrophes, and
livelihoods, among other things.
 Size: Oxfam is a global organisation that operates in 94 countries with almost a thousand
local partner organisations. They operate in the field of social welfare with over 50,000
volunteers all around the world (About Oxfam. 2019).
 Scope: As the world's population grows, so does poverty, and the organization's mission
is to improve people's lives.

 Oxfam's vision - is to create a world free of poverty, where everyone is cherished and
treated fairly (Teng, Thekdi and Lambert 2012). They think that through working
together, individuals can make the world a more equitable and poverty-free place.
 Mission : Their mission is to get individuals to give to their favourite charity by
persuading them to do so.
 Business Objectives: The goal is to deliver effective solutions to poverty inequity. The
goal is to empower individuals so that they can build a secure future free of poverty.
 Stakeholders: Oxfam's trustees, workers and volunteers, suppliers, and the communities
in which they work are all considered stakeholders
P3. Explain the relationship between different organisation function and how they link to
organisation objectives and structure ?
R&D and purchase department: Every business's expansion is dependent on marketing
research. The quantity of inventory purchased is also dependent on market expansion. When it
comes to gaining market share in various nations, GM Motors places a premium on its research
and development staff. The purchasing department purchases a sufficient number of raw material
to manufacture vehicles. As a result, it can be concluded that GM motors heavily relies on its
research team to extend its market share in various regions.
Marketing and HR department- To appoint members for marketing team the
organisation GM motors manager marketing department contact the Human Resource unit to
serve the purpose. And as per requirement HR team hire appropriate number of candidates so
that business operations run smoothly. Through maintaining coordination and cooperation
business entity achieve their targets effectively on time. GM motors marketing executive
increase their level of sales by using various promotional campaigns.
Organisation structure of both public and private company.
Hierarchical organisation structure: It refers to organisation’s command chain, in this
orders or directions are given from top management to general staff members. In such of
companies where there is single leader is there, this method of hierarchical are tends to be
commonly adopted. As both the organisation whether it is Tesco or BBC follows hierarchical
structure.

Divisional structure- General Motors Company has a regional divisional organizational
structure. This type of organizational structure involves grouping business activities according to
geographical segments or areas of operations
P4. Identify the positive or negative impact the macro environment has upon business operations,
supported by specific examples?
Political factor: It covers various factors such as political stability, , labour law, corruption,trade
restrictions, tax policy, government policy etc.
Positive Impact Negative impact
Low cost tends to be involved in terms of
making any changes in rules and policies in the
United Kingdom because of political stability.
Because a major portion of income is paid in
the form of duty, the imposition of import
duties tends to reduce firm profitability.
Economic factor: exchange rate, , interest rate, disposable income, , economic growth,
unemployment rate, exchange rate etc. are all important element of such factor.
Positive Impact Negative impact
Customers' high purchasing power might have
a beneficial impact on sales because they can
afford to buy a high-quality vehicle and their
parts.
Inflationary conditions are likely to worsen as
a result of Brexit. It raises the price of the
vehicles or parts, which has a negative impact
on sales.
Social Factor: : It covers the various factors such as age distribution , population rate,,
lifestyle attitude, health and safety measures, and many other also.
Positive Impact Negative Impact
The growth in the population rate leads to an
increase in the level of sales, which helps in
Because people are becoming increasingly
concerned about standard so their demands

terms of long-term survival. change as per the change lifestyle attitude.
Technological factor: The following elements that fall under this category are
technological motivation, research and development activities, automation, innovation, and
technological awareness. Rao (Rao, 2021).
Positive Impact Negative Impact
. GM Motors attracts significant customers
with advanced technology
As It has a lot of competitors, which has an
impact on sales because it leads to diversifies
the audience to those who tends to offer low-
cost vehicles.
P5. SWOT Analysis of Both Public and Private Sector Organisation
SWOT Analysis of BBC
Strengths
 In all over the World it create goods
image of their reputed brand in the
mind of audience of different countries.
Weaknesses
 The BBC's operational costs are high,
despite the fact that its competitors
operate at a cheap cost.
Opportunities
 . They have the potential to develop
their emerging markets in thee country
INDIA And CHINA.
Threats
 They face stiff competition from other
broadcasting outlets such as CNN

SWOT Analysis of GM Motors.
Strength-
 Joint partnerships with Chinese automobile manufacturers
 Vehicles that are both safe and environmentally friendly
 Brand portfolio that is strong
Weakness-
 Dependence on the United States for the majority of revenue
 Brand recognition
 Sales growth is reliant on pickup trucks and SUVs.
Opportunities-
 The desire for pickup trucks and SUVs is soaring as low prices of fuel.
 Release dates and frequency of new models
 Autonomous cars are in high demand.
Threat-
 A rise in competition
 The growing value of the US currency
 Costs may rise as government rules become more stringent.
TASK 4

P6. Interrelationship of External Macro Factors with Strengths and Weaknesses
British Broadcasting Corporation
 Political: The US and UK's political stability in terms of rules and regulations will assist
the BBC improve their brand image on a huge scale in the future (Huang and et. al.
2013).
 Economic: The Government has lowered the finances available to the BBC in the form
of licensing fees, and their operating costs are high, implying that the BBC will be unable
to run successfully with low finances if their operational costs are equally high.
 Social: The BBC has been effective in quickly adapting to changing customer behaviour,
which has helped them to become the world's largest broadcaster, providing the most up-
to-date news on radio and television . Technological: It costs more to provide the most up-to-date news in many languages,
which contributes to BBC's global brand recognition.
 Legal: Because the BBC is completely reliant on its board of directors for funding, its
strong brand image may be harmed if the amount of money collected from the public in
the form of licencing fees is low.
 Environmental: Bottlenecks in the delivery of news from one location to another can
have a negative impact on the BBC's global brand image.
CONCLUSION
According to the findings of the aforementioned analysis, all sorts of organisations must
adhere to all legal requirements in the operating nation. The achievement of long-term goals is
aided by appropriate collaboration amongst all corporate units. External variables have both a
good and negative influence on the organization's performance. GM Motors has a system that

enables seamless operations, allowing the corporation to obtain a higher likelihood and market
share. It is vital to work in accordance with the law in order to run a successful business.

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