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Higher National Diploma in


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Business
and
Business
Environ
ment

pg. 2
Table of Contents
Abstract............................................................................................................................................4

Introduction......................................................................................................................................5

Explain the different types, size and scope of organisations...........................................................6

Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.......................................................................................................................6

Explain the size and scope of a range of different types of organisations...................................8

Demonstrate the interrelationship of the various functions within an organisation and how they
link to organisational structure......................................................................................................10

Explain the relationship between different organisational functions and how they link to
organisational objectives and structure......................................................................................10

Use contemporary examples to demonstrate both the positive and negative influence/impact the
macro environment has on business operations.............................................................................12

Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples...............................................................................12

Determine the internal strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors................................................................................15

Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses..........................................................................................................................15

Explain how strengths and weaknesses interrelate with external macro factors.......................16

Conclusion.....................................................................................................................................17

References......................................................................................................................................18

pg. 3
Abstract
Business and business environment is a task which refers to organisation culture, environment
etc. Every organisation has own environment and culture. There are many things which are
dependent on business environment like achieving goals, relationship between employees,
organisation culture etc. If organisations can maintain a good environment within the workplace,
it can be easier to achieve goals and objectives. They should also focus on macro environment
factors.

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Introduction
The environment of business is a major part of an organisation which helps to improve the
activity of an organisation. Business is dependent on this environment. A good and stable
business environment can help a lot for running the business properly and avoid conflicts. A
company should have a good culture within the organisation. As a natural good environment
keeps us healthy and safe, good organisation environment also keeps the company healthy and
safe. So, maintain a good environment is important for all the company. We will express these in
this file.

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Explain the different types, size and scope of organisations
Explain different types and purposes of organisations; public, private and
voluntary sectors and legal structures.
Every company is dissimilar from each other. Their environment and culture also are different.
They are different from their work and purposes. There are three types of organisations in the
UK. The public organisation, private organisation and voluntary organisation. As for example, I
run a coach business which is a private organisation. The type of these organisations is different
as well as their purposes. These organisations have a huge contribution to economic change. This
contribution is significant. People who are involved in these companies could lead to a better
life. So, these organisations play a vital role nationally along with internationally [ CITATION
And \l 1033 ].

Public business organisations


The public organisations market is huge and there are a lot of competitors within the market.
Public business organisations are mainly working for the people and serve them. They are not
working for the profit. These organisations work for the betterment of the public services in the
UK. All over the world, public business companies are working on this goal. These are mainly
government organisations. Public companies focus on public welfare. Organisations which are
not public sector are private or voluntary organisation. Public business companies are based on
public goods and government services. There are many public transport such as Translink.

Private business organisations


There are a lot of private business companies in the UK as well as in the world. The world is
developing day by day. And everyone tries to start a new business in the market. The market is
huge and there is a big opportunity for starting a business. So, private companies are growing
day by day. Private companies are mainly focusing on profit maximisation. Profit maximisation
is their ultimate goal. They have product or service which they can sell and earn revenue from it.
They try to earn profit as much as possible [ CITATION Ara13 \l 1033 ]. Because as much as
they earn a profit, they can upgrade their business and develop their organisation. They also

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serve people, but not like public business organisations which focus on the welfare of people, not
profit. I run a sole trade which is a coach business is a private organisation.

Voluntary business organisations


Voluntary companies are serving people and countries for the welfare of the people and
voluntary work. There are a lot of voluntary organisations in the UK. Their goal is to help
people. Voluntary organisations mainly serve the helpless people who are really in a bad
situation. Voluntary organisations try to help people all over the world. They have many
branches in the world. Their services are available nationally as well as internationally. They
have many business strategies to run their business.

pg. 7
Explain the size and scope of a range of different types of organisations.
We will discuss the size and scope of these organisations:

Public business organisations


British Airways is so big company and not only serve the UK but also serve outside of the UK.
Heathrow Airport is the main base. The head office of the company is in Waterside,
Harmondsworth. The company carries a lot of people every year. It is also one of the largest
airline company in Europe. This is public business organisations and has to serve the people.

 Background and services: British Airways was established in 1974 when the British
government wanted to establish two national airway companies in the UK. There were
two national and two regional airway companies. All four companies were merged into
British Airways [ CITATION Pai12 \l 1033 ].
 Size and scope: The employees are also huge and many people are employed in the
company. Many unemployed people got a job in British Airways.
 Vision: As a public business its duty to serve people. They are not working on earring
profit. The welfare of the people is goal of British Airways.
 Objectives: as we said the previous point, the ultimate goal of the company is to serve
the people. As a public business organisation, their objective is the welfare of the people.
They are trying to help people so that people can move easily from one place to another
without any problems.
 Organisational and legal structures: British Airways has some rules and regulations for
running the company and also maintain the laws and enforcement of the government.

Private business organisations


I run a coach business which is a private company which is British. They have lots of products.
This is a private business organisation and we will analyse about this company:

 Background and services: That organisation is run by me. The company now giving
coach services to the customers.
 Size and scope: among private business organisations, my company is one of the largest
company in the UK. We have many employees and they are helping the company to grow

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up. This company has a major contribution to the UK economy and give jobs a lot of
people.
 Vision: The main vision of this group is to grow up and make a lot of customers. Profit
maximization is one of their major goals because every private business organisation has
this goal.
 Mission: Serving the people and make the best products for them is the mission of the
group. It has a large business in the UK.
 Organisational and legal structures: The company maintain strict policies for better
performance and output and for serving people [ CITATION Abd15 \l 1033 ].

Voluntary business organisations


Oxfam UK is a voluntary organisation which provides services to the people since 1942. It is a
very old organisation and has a fame for their charitable performance and activities. The size and
scope of Oxfam UK:

 Background and services: It was established in 1942 and serving from that time. They
provide services to them who need business ideas and ideas to solve problems.
 Size and scope: This is a large company and not only serve the UK but also serve all
around the world. They have many branches in many countries.
 Vision: This company was founded to eradicate poverty from the world and their vision
is it. They are working on it.
 Mission: Their mission is to develop their business so that they can achieve their vision.
 Organisational and legal structures: they are following their strategy to develop their
business and also maintain the laws and enforcement of government.

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Demonstrate the interrelationship of the various functions within an
organisation and how they link to organisational structure
Explain the relationship between different organisational functions and how
they link to organisational objectives and structure.
Marketing
The marketing department is one of the most important departments of my company. If a
company produces a product or service, and no one knows about that, it is not beneficiary or
profitable for the company. So, one company has to announce it and the marketing department
does that. My company take many steps and procedures to reach the customer with the product
or service [ CITATION Cec18 \l 1033 ]. The marketing department also analyses the market and
set a price for new products or services. It helps the company to run smoothly. The department
follows the marketing mix or 7p strategy for taking decisions.

Objectives and missions: The main objective and mission of the marketing department of my
company is to make smart decisions for the company so that the company shouldn't face any
problems. They make specific plans and policies and strategies to develop the company's market
value and attract customers.

Finance
Finance is another important department of my company. It helps an organisation with financial
activities. Funding for the organisation, how to use the fund, future financial decisions etc. are
the activities of the finance department. They analyse the financial activities and growth of a
company. The finance department is necessary for all other departments.

Objectives and missions: Finance department analyses and make a good choice where a
company can invest the resources and makes a great return. Proper financial decisions can help
to earn more profit and avoid risk for my company.

Human resources management


We know every company needs employees and without employees, no company can run their
business. Employees are mandatory for any types of organisations like my company in this

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world. And organisations should choose the right and smart employees for them. Human
resources management do this for the organisation. My company has an HR department for
recruiting new people and train them. If HRM team can collect the best employees, the
organisation can get better feedback from them and prosper [ CITATION Joh12 \l 1033 ].

Objectives and missions: The main objective of this department is to recruit people for
organisations. Every organisation has an HR team to recruit people and train them.

Figure: Organisational structure

pg. 11
Use contemporary examples to demonstrate both the positive and
negative influence/impact the macro environment has on business
operations
Identify the positive and negative impacts the macro environment has upon
business operations, supported by specific examples.
PESTLE analysis is a tool which is based on six segments:

Political
Figure: PESTLE analysis
Economic Sociological
By these
six

Technological Environmental Legal

factors, we can analyse a company's data. Leadway consulting is a business organisation based in
the UK. We will do the PESTLE analysis of this company below:

 Political: Political factor plays a vital role in an organisation. It has s great impact on
culture and development of a company. Leadway consulting is a business organisation
and political factor has to an impact on it. Political factor has many components like legal
structures, price regulations, tax, laws and enforcement, legal policies of a country etc.
Leadway consulting ensures of a political factor if it wants to run a business in the UK.
Otherwise, it cannot run a business. Every company has to follow the political factor in
any country.

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 Economic: Economic factors also have an impact on Leadway consulting. Foreign
exchange, interest rate, unemployment and many other more are macro-environment
factors. These factors have a great influence on Leadway consulting. This company can
analyse the growth and development of economic change by these factors. According to
these analyses, they can take the necessary steps for them.
 Sociological: We all live in a society. There are so many sociological factors in our
society. It has a great impact on the growth of an organisation. In a different society,
people's behavior is different and their choice is also different [ CITATION Ost14 \l 1033
]. This plays a vital role when an organisation runs a business. Because they have to keep
in mind about people's choice and test. They have to offer this type of product.
Otherwise, they have to target a market in which their products can be sold. Leadway
consulting should focus on social-cultural, choice, attitude etc.
 Technological: Technology is growing day by day. It is evolving and getting rich. By the
help of technology, we can learn a see anything from anywhere in the world. Technology
gives us a lot of benefits. Every organisation uses technology nowadays. Every company
has a website or technological activities. In this modern era, the company's growth also
depends on technical knowledge and support. Leadway consulting should focus on the
technology sector more and more and also give online services to its customers.
 Environmental: Environment has a great impact on business. Different country has a
different environment. Many multinational companies operate their business in many
countries. They have to keep in mind about environmental factors. There are also some
rules and regulations about environmental issues in many countries like the USA or
European countries. They have rules on waste management, awareness, recycling,
products quality etc.
 Legal factors: There are many rules and regulations in every country. They have legal
procedures. They have company rules. Every company, as well as Leadway consulting,
has to follow these. Otherwise, they can't do business. There are many laws like labour,
customer protection laws and many other.

pg. 13
Determine the internal strengths and weaknesses of specific
businesses and explain their interrelationship with external macro
factors
Conduct internal and external analysis of specific organisations in order to
identify strengths and weaknesses.
SWOT analysis:

SWOT (strength, weakness, opportunity, threat) analysis of Leadway consulting:

Strength: Leadway consulting is big. They have a lot of customers. The main strength of them is
their reputation. They are much experienced and they have enough knowledge about their
business. Operating business in a country like the UK is another strength. They have enough
resources and have capabilities to manage their customers. They have good and smart employees
[ CITATION Tho17 \l 1033 ].

Weakness: The main weakness of this company is lacking awareness and market target. They
have to improve their marketing strategies and keep people aware of their services. Financial
issues may be their another weakness.

Opportunity: The market is emerging. There are a lot of opportunities for Leadway consulting
in this market. They can capture this market and attract people to get their services. They can
reduce cost and save money for future use. They can develop new products or services and offer
them to the market. They can enter a new market. They can take advantage of a new trend.

Threat: As the market is big, the competitors also more. In this market, competition is so hard.
Many new and existing company wants to capture the market. Environmental change can be also
a threat. Change in technology, fashion, a trend also can be a threat.

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Explain how strengths and weaknesses interrelate with external macro factors
Strength:

Leadway consulting has a big market share. They have much strength. These strengths are
interrelated. The political factor is related to strength. If strength is good of an organisation, they
can get support from political factor. Good economic condition is another strength for an
organisation. It helps a lot to improve the business in a stable economic condition. Social factors
are related. Technical knowledge, experience is a great strength of any company nowadays.
Good environmental condition is also another strength. And finally, legal factors are also related
to strength.

Weakness:

Leadway consulting has some weaknesses. These weaknesses are interested in external macro-
environment factors. For example, if the political factor of a country is conflicting with this
weakness, they cannot run the business smoothly. Economic factors should be supportive.
Technology is helpful and company can give better performance.

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Conclusion
All the business is going through an environment. Every company runs its business and makes
strictures according to its business environment. They take decisions after analysis of the
business environment. Macro environment factors have a great impact on every business
organisation. Organisations should study these factors. The statistics of these factors can help
companies to develop. Business organisations should do their own PESTLE and SWOT analysis
and take decisions according to the results.

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Baltzan, P., 2012. Business driven information systems. New York: McGraw-Hill Irwin.

John F Steiner, G. A. S., 2012. Business, government, and society. New York: McGraw-Hill
Irwin.

Mohamed, A., 2015. The international business environment: a proposed analytical framework.
International Journal of Business Environment, 7(2), p. 168.

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Buisiness Games for Personnel Training at Industrial Enterprises. Asian Journal of Applied
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Satryo, C., 2018. Free Trade Intervention: Political-Economic Intervention on Global Business
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Thomas L Wheelen, J. D. H. A. N. H., 2017. Strategic Management and Business Policy.


s.l.:Pearson Education UK.

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