Business and Business Environment

Answer :


Business environment refers to the study of such factors that may affect effectiveness of operational activities. All the factors may leave positive or negative impact upon business operations. If the managers of the company are not able to make effective decisions in critical situations then it can result in decreased strength of the business (Hilton and Platt, 2013). There are various factors such as market trends, government policies, customers preferences that affects profits and sales of the company. Company taken in this project report is mainly based on Unilever which is a private sector organisation.

This report consists different topics that are different type of organisations and their purpose, size and scope, relationship between organisational functions and objectives. Positive and negative impacts of macro environment, internal and external analysis to find strength and weaknesses and the way in which both of them related to the external macro environment are also discussed under this project report.


P1 Different Types of Organisations and their Purposes

There are different types of organisations that are running their business in the market and performing all the operational activities. Each of them have own objectives and purposes to execute the business. The types of the organisations are explained below:

Public organisation: Such type of organisations are operated and executed by government or regulatory authority of a country (Savrul, Incekara and Sener, 2014). It includes different activities that are performed by police, transport, military and educational institutes of the nation. Government is responsible for all the controlling and monitoring of the businesses.

NHS is public company and providing medical services all around the world. Main purpose of the organisation to provide free health care services to helpless people of society. It also provides optical and dental care and their missions is to supply basic medical facilities to poor people who are not able to afford the same.


  • To provide basic health care services to the poor people of the society.
  • Achievement of quality in their services for the optimum care of patients.

Private organisation: These organisation are controlled and operated by private individuals. The companies who are running their business in private sector are also called non government organisation. These are mainly run to attain higher amount of profits and they have different legal structure.

Unilever is a private company which is established in UK and supplying products to whole world. Various products are delivered by the company that includes food and beverage item, personal care goods and also provide services like cleaning agents. Currently it is providing services and products in more than 190 countries.


  • Main objective of the company is to attain higher amount of profit.
  • To improve the standard of living of the society.
  • Attain the targets such as acquire higher market share by putting full efforts.

Voluntary organisation: It includes all such organisations who are operating their business activities for the purpose of development of society and not for earning profits. All the tasks of such type of organisations are performed by volunteers who join the administration willingly. It is important to take permission from government to establish such type of companies (Boons and Lüdeke-Freund, 2013).

Oxfam is a voluntary organisation who is working for social welfare and to remove poverty. Various activities are performed by the company which are simultaneously provided and includes advocacy, disaster relief, policy research etc. Food relief is also provided by the company to poor individuals whoa re not able to buy food and fulfil their basic needs.


  • Main objective of then company is to remove poverty from the world.
  • To provide secure future to individuals of the society who are helpless.
  • Conduct educational program all around the world to enhance education level.

P2. Size and Scope of Different Type of Organisations

There are three different types of organisations in the market who are running their operations. These are private, public and voluntary companies. All of them work for different purposes and have their own size and scope which is required to operate and execute business. Size depends upon the regions where company is operating and the market share which is captured. Scope can be defined as the information about the products and services that are supplied by the organisation. Size and scope of all three companies are explained below:






It was introduced by Aneurin Bevan in Manchester for the purpose of providing health and care services.

It was founded by Level brothers in year 1929 and currently it is running its business all around the world and based in UK.

It was established in year 1942 to provide services all around the world. It is concerned with poverty removing programs that are held in UK.

Product and services

Various health care services are provided by the company for the purpose of social welfare and to help poor people.

Various diversifies goods are delivered by the company that includes food and beverage items, health care products etc.

Company is working for social welfare and provide disaster relief, policy research and advocacy services to poor individuals of the society.

Size and scope

It is a large organisation and running its business all around the world. It is world's fifth largest health care organisation in public sector. The scope of the company can be defined with the help of the fields where it perform all the activities like dental and health care.

Unilever is a large sized organisation and supply products to the whole world. It was considered as the world's largest organisation in year on the basis of profits. Unilever is dealing personal care products, food and beverage items etc. which is its scope.

It was established in year 1942 and running its operations all around the world to reduce poverty. The scope of the company is social services that are provided with the help of volunteers.


Vision of NHS is to render enhanced health care and values all around the world for the purpose of social welfare.

Vision of Unilever is to attain long term sustainability in order to enhance effectiveness of the company.

To remove poverty from world and enhance standard of living for every poor person in the world.


Mission of NHS is to provide care and basic medical facilities to each and every individual every day.

The mission of Unilever is to meet daily needs of the customers and enhance brand loyalty by providing them good quality product.

To bring positive change in the society in order to reduce poverty.


Help those individuals who are not able to buy basic health care services.

Objective of Unilever is to acquire higher market share to spread the business.

Objective of the company is to find easy solutions for poverty problems so that every individual of society can live a happy life.

Organisational and legal structure

The organisation is following lean organisational structure that helps to increase customers. Central government legal structure is followed in the org

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