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Business and Business Environment (Unit 1)

This document discusses different types of organizations including public, private, and voluntary sectors. It explains their purposes, legal structures, sizes, and scopes. Public sector organizations like the BBC aim to provide benefits to the public, while private companies like DHL are for-profit. DHL has grown significantly over 50 years from a single employee delivery service to a global company with over 50,000 employees worldwide. The size and scope of organizations are linked to their business objectives and the products/services they offer. For example, the BBC employs over 30,000 people globally to provide news and information to audiences worldwide.

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0% found this document useful (0 votes)
231 views23 pages

Business and Business Environment (Unit 1)

This document discusses different types of organizations including public, private, and voluntary sectors. It explains their purposes, legal structures, sizes, and scopes. Public sector organizations like the BBC aim to provide benefits to the public, while private companies like DHL are for-profit. DHL has grown significantly over 50 years from a single employee delivery service to a global company with over 50,000 employees worldwide. The size and scope of organizations are linked to their business objectives and the products/services they offer. For example, the BBC employs over 30,000 people globally to provide news and information to audiences worldwide.

Uploaded by

Amit Soni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Business and business environment

1
Table of Contents
Introduction......................................................................................................................................3

LO1 Explain the different types, size and scope of organizations..................................................4

P1 Explain different types and purposes of organizations; public, private and voluntary sectors
and legal structures.......................................................................................................................4

P2 Explain the size and scope of a range of different types of organizations..............................7

M1 Analyze how the structure, size and scope of different organizations link to the business
objectives and product and services offered by the organization................................................8

LO2 Demonstrate the interrelationship of the various functions within an organization and how
they link to organizational structure................................................................................................9

P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure........................................................................................9

M2 Analyze the advantages and disadvantages of interrelationships between organizational


functions and the impact that can have upon organizational structure......................................10

D1 Provide a critical analysis of the complexities of different types of business structures and
the interrelationships of the different organizational functions (LO1 & LO2)..........................11

LO3 Use contemporary examples to demonstrate both the positive and negative influence/impact
the macro environment has on business operations.......................................................................12

P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples...............................................................................12

M3 Apply appropriately the PESTLE model to support a detailed analysis of the macro-
environment within an organization..........................................................................................13

LO4 determine the internal strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors................................................................................14

P5 Conduct internal and external analysis of specific organizations to identify strengths and
weaknesses.................................................................................................................................14

P6 Explain how strengths and weaknesses interrelate with external macro factors..................15

2
M4 Apply appropriately SWOT/TOWS analysis and justify how they influence decision-
making........................................................................................................................................16

D2 critically evaluate the impacts that both macro and micro factors have upon business
objectives and decision-making (LO3 & LO4)..........................................................................17

Conclusion.....................................................................................................................................18

References......................................................................................................................................19

3
Introduction
This report has formulated the business environment of the businesses of the primary, secondary
and voluntary sector. This report has included the section of business analysis based on inter and
external. The report may include the business of public, private and voluntary business sectors
which have shown how the businesses are gradually increasing their organizational culture and
creating competitive advantages. "Environment refers to something like the weird mix of an
internal and external component of companies, which is the integration into the global economy
affecting organizations ' business activity." A corporation is a collection of people working
together around various, monetary and non-financial compensation, reasons for the execution of
a business mostly on the real economy. Different types of organizations are categorized
according to scale, configuration, reach and market. DHL is Great Britain's largest delivery
transportation company with effective distribution and postal system worldwide and leaves the
other commercial shipping firms, namely FedEx and UPS, aside. Upwards of 50 years ago, DHL
had proven facilities.

4
LO1 Explain the different types, size and scope of organizations

P1 Explain different types and purposes of organizations; public, private and voluntary
sectors and legal structures
Different types and purposes of the organization

Public sector organization: The administrative objective of community companies should be to


provide financial advantages and to pay the general population, it is a large number of benefits
non-governmental organization (Fang, et. al., 2020). The organization's intellectual property
configuration is that at least 2 institutional investors must be prevalent and a connection between
two managers must also be present. BBC is a government entity financially supported by the
body, with the primary objective being to provide all the general population with the news.

Organizational legal structure

5
Source 1: (hierarchy structure, 2018)

Private sector organization: Private corporations characterize a privately owned and operated
and operated growing business, private companies may also make investments from
shareholdings and therefore does not strike a 51% more than of DHL's private holdings as a
publicly traded corporation. Private sector organizations are meant for the development and
extension of the business by increasing business boundaries. The challenging part of the private
business is to increase recognition and get higher customer satisfaction.

Organizational legal structure

6
Source 2: (researchgate, 2017)

Voluntary sector organization: Volunteer organizations conduct certain programs to recognize


the fundamental needs and demands of people, societies, associations, etc., to carry out initiatives
to accomplish the objectives of providing essential needs for volunteer organizations, such as the
executive committee. This is the organization that works for public welfare and beneficiaries.

Organizational legal structure

7
Source 3: (Manchester, 2019)

8
P2 Explain the size and scope of a range of different types of organizations.
To examine the national events, the scope of BBC, a publicly owned company, is to provide
main contributions of information to the people. The organization’s history is that it's only
broadcasting also in the UK, starting about 1922. It was supported again at this time either by
Royal Charter. And since, its number has risen to more than 30,000 employees around the world
(Sivarajah, et. al., 2020). The organization’s size is incredibly high. The government
corporations' goal is to provide the customers with the necessary editorial content to improve
their online visibility as well as to represent viewers worldwide.

The BBC is a publicly owned organization and the BBC currently employs 83,000 people. The
organization mission is to identify the requirement of generating adequate income from all
employees and employers. The number of partner institutions is large, medium and sometimes
small to support their economic viability. The fair information companies are supported by the
National conditional Organization Council. The organization’s purpose is to promote participants
and community members. The car is headquartered as an organization and the participants in the
executive committee of Community Organization, with 14,000 employees, are responsible and
for requirements of the company.

9
M1 Analyze how the structure, size and scope of different organizations link to the business
objectives and product and services offered by the organization.
DHL's scale, design, complexity and function influence the administrative goals, which are
connected to but explicitly carried out to accomplish DHL courier services' organizational
priorities. DHL’s history has been that a single employee began in the 1960s. The concentration
of domestic development must have been strong later been seeing, that further began to inform
people. Within a week of 2001, it began dealing in foreign markets, contributing to some of its
return on investments. The community outreach framework which originally referred to the
clarification of expectations with the responsibility of staff members on a specific job because it
encourages employees and law enforcement agencies to enhance their efficiency to accomplish
their goals effectively (Newman, et. al., 2020). The scope consists of a variety of activities linked
to the production and distribution of goods and services, and the organizational structure seems
to have a significant influence on either the vision of the organization.

The close friendship between some of the various activities within an organization refers to the
interconnections between some of the different functions of DHL employable exercises, such as
brand management & sales, customer service, supporting activities, etc. Only once the product is
designed just like in the DHL mail service would the commodity be sold. The first task would be
to get the order of the customer. Secondly, transportation and other excursions are carried out
which demonstrate that each interaction within the company depends on those other interactions
as well as the balance between them. The controller was developed of each directorate requires
the effective achievement of organizational objectives.

10
LO2 Demonstrate the interrelationship of the various functions within an organization and
how they link to organizational structure

P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure.
The relationship between the organizational function is relatively competitive (Barnes, et. al.,
2020). DHL has signified with the various organizational functions that are outside and inside
the control of the business. The management of the organization is gradually increasing its
competitive advantages to make the very precise. DHL has numerous organizational functions
mentioned underneath:

 Financial management: The finance sector tracks but instead manages all its accounting
statements. The single transaction report is also included. Recording of the customers’
transactions and payment is a crucial activity and it also includes the pre & post-
transaction.
 Human resource management: This organization role helps in the improvement and
recruiting of qualified people. The management of people in the organization helps them
to find the skilled labors for the shipment of the products.
 Marketing management: This functionality allows supply and requirement recognition.
This would be the key feature since the generation of different products relies on this.
The acquisition of marketing management is, therefore, necessary because it helps the
management to instantly recognize by the people.
 Operational management: This role involves complete internal controls and changes
management methods to provide consumers' products with high quality. The product
packaging, labelling and other shipment requirements have been fulfilled by this
department (Huang, 2020). The operational department plays a very crucial role because
they have to ensure every product must deliver to its right customer.
 Administrative management: This is designed to provide premium features such as
cloud technology, instant messaging services, recognition of staff, etc. The administrative
department is required to keep the management filled with required resources.

11
12
M2 Analyze the advantages and disadvantages of interrelationships between organizational
functions and the impact that can have upon organizational structure.
The organization has already mentioned its functions in the above section that show the
interrelationships with the defined objectives and mission. There are certain advantages and
disadvantages also which are necessary to be viewed for the betterment of the organizational
performance (Arsić, et. al., 2019). The advantages and disadvantages are mentioned underneath:

Advantages

 Advantages of interdependence in multiple corporate objectives such as product


development, marketing and distribution contribute to improved competitiveness.
 Healthful interconnections promote and efficient contact.
 The position in the government consequence which enhance the economic employee's
effectiveness and expenditures.
 Higher achievement rates are encouraged through interdependencies as significantly
lower customers encourage employment conditions, which motivates employees through
the interconnections and prevents profit-making.

Disadvantages

 The entity-relationship drawbacks within the company are fault and accountability
problems so that depts. or individual citizens have no responsibility because of their
success.
 Conflicts of personality in work environments are common because of the deviation and
time results.
 Define misunderstandings, miscommunication, etc., for instance, if the courier is not
delivered to DHL service providers on time.
 Any member of staff shall not accept responsibility and accountability some other
government agencies for the main reason including its delay.

13
D1 Provide a critical analysis of the complexities of different types of business structures
and the interrelationships of the different organizational functions (LO1 & LO2).
DHL's underpinnings in transportation companies tend to involve problems or ramifications in
terms of architecture, regulatory regime, transport systems, techniques, distribution channel,
facilities, services, technologies, interfaces, etc. as well as the complexities that bring people
with economic activities and that negatively impact achieve its goals and objectives (Malesky, et
al., 2019). And indeed the complex interactions between different organizations define the
reliability of several other activities such as manufacturing, distribution, research and innovation,
the human resource manager, etc. The critical finding in the sections is to develop the positive
and negative factors in this report. The challenging factors for the logistics are if they will not
follow the organizational functions critically, they will not be able to achieve their desired
objectives and mission. To develop a competitive edge and create a significant place in the
market, DHL is required to develop coherent objectives and mission through which they can
create a significant image of their brand in the eyes of people. People must recognize them by
listening to their name.

14
LO3 Use contemporary examples to demonstrate both the positive and negative
influence/impact the macro environment has on business operations

P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
Positive impacts of macro factors on DHL

 Access to new customers: DHL finds this one a macro market environment to be the
first advantage of the external factors where potential customers will meet (Wahlström,
2019). It allows consumers to give services in line with the latest trends, which ultimately
have a positive impact on its operations and improve productivity profit & economic
expansion.
 Achievement in enhancing cost management: Reducing costs based on marketing and
customer selection significantly increases productivity in the business. The operations of
a range of brands are evaluated by DHL objectively.
 Capitalization: The third benefit is that capitalism will allow DHL organizational
leaders to raise capital for new projects by evaluating market dynamics through physical
conditions. The outside business climate helps find consumers' preferences but instead
prohibits companies from engaging in retail service delivery.

Negative impacts of macro factors of DHL

 Changed behavior of customers: Macro environmental scanning will minimize the


level of service's performance because the trend-based market shifts trends and
logistics at all times. It can impact service delivery and reduce customers.
 Governmental and legal policies: Adherence to trade restrictions is indeed very
necessary even when the business has adverse effects. It restricts the productivity of
employees.
 Innovations and technology: The employees find it extremely difficult to change, and it
has an accounting influence on the industry if technological innovation is available to
consumers.

15
M3 Apply appropriately the PESTLE model to support a detailed analysis of the macro-
environment within an organization.
The operations management is an unmanageable extenuating circumstance that also affects
business activities, such as decision making, policy planning etc. It, therefore, affects DHL
activities, both positively and negatively (Bashir and Verma, 2017). Such as-

 Political and legal factors: For example, the Government has introduced new legislation
and regulations in the postage and delivery company categories that are meaningful for
DHL, and can thus affect the organizational production and productivity mostly in a short
and the long term.
 Technical factors: This aspect illustrates the advanced use through DHL emerging
technologies, such as automated processes, thus building a significant impact on the
economic operations of DHL such as automated hand baggage handling pieces of
machinery.
 Social factors: DHL needs to solve customer problems would like to have the
sustainable growth of the dispatch service. For example, if its beneficial impacts have
been achieved otherwise pessimistic.
 Economical factors: It displays the organization's business output, including inflation,
economic growth, development arts, etc., e.g. GDP is influenced by such significant
positive benefits (Aithal, 2016).
 Environmental factors: It suggests that respondents comply with health and safety
legislation, for instance-environmentally friendly products, environmentally responsible,
non-polluting goods, etc.

16
LO4 determine the internal strengths and weaknesses of specific businesses and explain
their interrelationship with external macro factors

P5 Conduct internal and external analysis of specific organizations to identify strengths


and weaknesses.
Internal analysis

The economic environment covers two dimensions, internal and external environment, but the
surrounding environment covers two subtypes, micro as well as macro. Institutional assessment-
First ruling coalition providers: individuals are indeed the person responsible for DHL’s general
control. To resolve the problem, they must look during each process when they are the main
competitors or core subcontractors. The business intensity of rivalry: DHL's job is to take
approaches from periodically to compete; DHL managers should understand or decide about the
separate or the same service.

External analysis

The consumer would be the one who uses or purchases our service for various purposes; it is his
responsibility to please the customer through goods and services. Supplier is the shareholder of
the company of DHL who receives orders and sells them to everybody else (Likoko and Kini,
2017). Often management and decision-making further take place. DHL Interpretivism
philosophy can be categorized as demographic characteristics and must be carried out in
different segments, such as religion, education, community, lifestyles, etc. Rational
considerations are including natural resources, for example, sustainable energy or natural
resources, which help DHL, produce; if scarcity occurs, it will straightforwardly affect the
business delivery companies.

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P6 Explain how strengths and weaknesses interrelate with external macro factors.
Strengths of DHL help to define the industry, not just to define our competitiveness, market
attractiveness awareness, real effective exchange rate, loan statistics, GDP, inflation and
international economic market conditions. DHL effectiveness can be skilled professionals,
adequate resources and clarification about our business strategies and vision after assessing the
business unit confidence. And with different cultural background and complaints, the
disadvantage of a DHL company may be disagreements. The two result(s) associated with a
domestic and foreign climate is the main strength.

Weaknesses of DHL are the component has numerous aspects, but then to reduce it, our power,
weakness, and interrelationship amongst them must be established (Sivarajah, et. al., 2020).
Consumer satisfaction: this is the strongest interdependency amongst corporation and the
capability although when the company becomes satisfied with the result they will enhance our
profitability and that will increase in DHL productive output.

18
M4 Apply appropriately SWOT/TOWS analysis and justify how they influence decision-
making.
Strengths

The importance of DHL elsewhere defines wonderful thoughts throughout the business, for
example, professional workers, right people mostly on a particular place, accommodation,
sufficient staffing, qualified staff, positive feelings and, above all, service quality (Čepel, et. al.,
2018).

Weaknesses

DHL's shortcomings include the supply of the raw materials, the underemployed or semi-trained
advance-operating equipment, outdated systems, relatively inexpensive, unsafe employment
conditions, the absence of a sufficient organizational framework, complaints and perhaps a
healthcare network.

Opportunity

It helps to increase our disadvantage and create a stronger brand profile, such as growth in client
demand, growing business, increasing income and bigger productivity and all that can
significantly raise our cultural advantages. An opportunity varies depending on an organization’s
environmental entity.

Threats

Risks often ultimately depend on the DHL extraneous environment such as competitiveness on
the markets, poor organizational efficiency, high heightened risk, any damages, etc. Risks to
companies resulting in decreased competitiveness and harm to business performance (Yang and
Gabrielsson, 2017).

19
D2 critically evaluate the impacts that both macro and micro factors have upon business
objectives and decision-making (LO3 & LO4).
Micro is a DHL framework only within the system and the macros are external. Microeconomic-
factor-Tech impact: As a management consultant, it is everyone’s responsibility to verify if the
individual is adequately qualified to do the work since they use sophisticated equipment,
machinery and software, but instead if they do not pass, individuals will influence their
competitiveness. Economic factor:-they have to make sure both production and corporate
revenues are a management consultant. This is the fundamental explanation for something like
the development of the company, for example, wages. Impact of multi-factor-customer
satisfaction:-it is critical that an investigator provides their organizational great advantages, and
favorable brand immediate reaction will improve DHL’s efficiency (D’Haen and Van den Poel,
2013). It is the responsibility to ensure every component occasionally. It is a tool that the
company provides to monitor the direct and indirect impact on the remote or macro-environment.

20
Conclusion
Throughout this study, employment conditions including various forms were explored in an
information system where international and domestic dimensions have been discussed. The
whole subject related to an organization and work environment has been encompassed in this
research study. The view of the above discussion is to examine the activity of various forms of
organizations. The PESTEL and SWOT evaluation were mentioned, that further reflect two
separate organizational types. The study addresses the effectiveness and weaknesses of a
company and its advantages and disadvantages. Based on this report, DHL, therefore, concluded
that positive approaches which aren't even on the marketplace or used by every other company
must be acquired. In preparation to obey the procedural principles, companies must have several
roles in their organizations.

21
References
Aithal, P.S., 2016. Study on ABCD analysis technique for business models, business strategies,
operating concepts & business systems. International Journal in Management and Social
Science, 4(1).

Arsić, S., Banjević, K., Nastasić, A., Rošulj, D. and Arsić, M., 2019. Family business owner as a
central figure in customer relationship management. Sustainability, 11(1), p.77.

Barnes, L., Long, W.R., Williams, P., Wilson, D., Poulton, E. and Sormin, V., 2020. When
Business and Business Schools Unite to Create Uniqueness: Stakeholder Relationships in
Business Hubs Embedded in Higher Education Business Institutions.

Bashir, M. and Verma, R., 2017. Why business model innovation is the new competitive
advantage. IUP Journal of Business Strategy, 14(1), p.7.

Čepel, M., Stasiukynas, A., Kotaskova, A. and Dvorský, J., 2018. Business environment quality
index in the SME segment. Journal of Competitiveness.

D’Haen, J. and Van den Poel, D., 2013. Model-supported business-to-business prospect
prediction based on an iterative customer acquisition framework. Industrial Marketing
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Fang, S., Goh, C., Roberts, M., Xu, L.C. and Zeufack, A., 2020. Female Business Leaders,
Business and Cultural Environment, and Productivity around the World. World Bank
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Huang, F., 2020. Study on Zhuhai Business Environment. Open Journal of Social


Sciences, 8(04), p.223.

Likoko, E. and Kini, J., 2017. Inclusive business—a business approach to development. Current
opinion in environmental sustainability, 24, pp.84-88.

Malesky, E., Dulay, D. and Keesecker, J., 2019. The Myanmar Business Environment Index
2019: Measuring Economic Governance for Private Sector Development.

22
Newman, C., Rand, J., Tarp, F. and Trifkovic, N., 2020. Corporate social responsibility in a
competitive business environment. The Journal of Development Studies, pp.1-18.

Sivarajah, U., Irani, Z., Gupta, S. and Mahroof, K., 2020. Role of big data and social media
analytics for business to business sustainability: A participatory web context. Industrial
Marketing Management, 86, pp.163-179.

Sivarajah, U., Irani, Z., Gupta, S. and Mahroof, K., 2020. Role of big data and social media
analytics for business to business sustainability: A participatory web context. Industrial
Marketing Management, 86, pp.163-179.

Wahlström, B., 2019. Q&A. What Can Action Research Learn from Business Environment
Analysis?. Technology Innovation Management Review, 9(5).

Yang, M. and Gabrielsson, P., 2017. Entrepreneurial marketing of international high-tech


business-to-business new ventures: A decision-making process perspective. Industrial
Marketing Management, 64, pp.147-160.

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