Unit 1 Business and the Business Environment Assignment Help - L/508/0485 BTEC Higher National Diploma in Business (Marketing)

Business and the Business Environment

P1 Explaining different types and purposes of organisations; public, private and voluntary sectors and legal structures:

Within an environment of a business, there can be a variety of organization that can conduct their operations (Wetherly, 2014). The characteristics of the business operations define the types of the business and thus many such organizations that exist within the environment of the business are mentioned underneath:

Private:

There are various kinds of businesses which can be accounted under the private business and self proprietorship is a major kind of private business along with family oriented businesses and businesses which runs in partnership. Due to the fact that one or few partners own the business, the risk is only shared among those partners and thus private business is much risky and also thus requires huge investment from the owners (Hvidman and Andersen, 2013). Though it is a fact that the business and the owners are being treated as separate entities and thus whenever there is a loss made by the organization, the borrowed amount of capital is legally responsible towards assets of the organization. in no way the assets of the owners are accountable for the loss.

Earning huge amount of revenue from the marketplace is one of the foremost objectives of the private organization. But it is a fact that as the business operations of private organizations are generally smaller than the public ones, their revenue is also less in the market as compared to public ones. The taxation of this kind of businesses as well as the liability is viewed directly by the government officials and the businesses should submit taxes at time to the government for each financial year. In example, it can be said that UK based Car Company Bentley Motors can be regarded as one of the private organization as their shares are not sold in the market.

Public:

The organizations which have the right to trade their shares in the marketplace are known as the public organizations and generally this type of businesses are public business as common people are allowed to buy shares in these organizations (Kuipers et al., 2014). The owners are these shareholders of the organization and the organizations which are public in nature generally in order to raise capital for the business sells these shares in the market. There are two sets of organizations under the public sector and while one half of the organizations has their main objective to serve the organizational customers, on the other hand another half of organizations exists with a purpose to earn revenue from the market. Decision making can be done by the shareholders jointly with directors of the organization and these shareholders are paid a part of the revenue which is known as dividend. In the fiscal meeting of the year, the annual reports are publicized so that the shareholders can calculate their dividend. The procedure of documentation is much more than that of the public organizations due to the fact huge amount of capital is raised by the business. In UK, some of the public organizations include Burberry Plc, British Petroleum Plc, and Rolls Royce Plc and so on.

Voluntary:

This kind of organizations do not focus upon making revenue from their business but their main motive is to work towards social development and thus they provide superior services to the organizational customers (Anheier and Seibel, 2013). People that work in this kind of organization join the organization out of their wish and work here in order to raise the societal standards for animals, environment and also for mankind. The employees are also not paid regularly as well. Charities are conducted by the business so that fund can be raised and also donations made by the businessmen can help in raising fund for these organizations. The legal entity of the owner of the business is different from that of the business entity due to the fact that this kind of organizations face crisis more often. In UK, some of the voluntary organizations present are Welcome trust, Cancer Research, Save the Children and others.

P2 Explain the size and scope of a range of different types of organisations:

The structure of the organization as well as their size vary in nature due to the fact that some organizations conduct large scale operations while some other organizational operations are small scale (Robbins and Judge, 2012). Additionally, the capacity of each organization also varies as well. The scope and size of various organizations that exists within the business environment are cited underneath:

Private:

Private organizations are generally smaller than that of the public organization though they are larger than sole proprietorship and partnership organizations but it is a fact that the success of an organization cannot be determined by the company size. The scope that the organization has in the market is the determinant of the company's success and Bentley in this aspect has done exceptionally well and earned a huge amount of profit in 2016 that amounts to € 2 billion. This earnings made by the organization is 4.9% times than that of the profit that the organization made the previous year and as of 2013, more than 3600 staffs are employed by Bentley (Moon and Sprott, 2016). Thus it is clear that the size of the business is huge but not as large as the publicly held organizations. Also, the market for Bentley cars are generally all around the world but USA is the largest market for the organization. Moreover, automobile industry businesses are capital intensive and also complex as well.

Public:

In the PLC organizations, the scope is much wider than that of the private companies and this is due to the fact that shares are released in the market which the common people can buy. Burberry as well as British Petroleum PLC can be regarded as classic examples of public companies and the revenue that Burberry earned in the year 2016 amounts to £ 2514.7 million and £ 28.7 billion is the total assets of the organization. Along with that British Petroleum Plc's revenue in 2017 amounts to US$ 244.58 billion and the total assets of the organization amounts to US$ 276.52 billion as of 2017. This proves the fact that the operations of the organization are wider in nature and also the capability of public organizations to earn revenue in the market is much wider. Also, both the companies have their distribution channels all over the world as well.

Voluntary:

The size as well as the scope of the voluntary organizations might vary and it can be local, national or international (Butler and Wilson, 2015). There are various legal formalities that these organizations are required to obey and thus their structures can vary from country to country as well. For example, it can be said that UK Cancer Research is limited to UK only while 5000 employees are employed by the organization while the volunteer number amounts to 42,000. Cancer research campaign as well as imperial cancer research fund formed UK cancer research when they merged together and as of 2015, their revenue amounts to £ 635.82.

P3 Explain the relationship between different organisational functions and how they link to organisational objectives and structure:

For the purpose of defining the organizational structure and functions, Bentley Motors has been chosen in this assignment and being a multinational organization, Bentley organizational structure is very complex. There are three levels of divisions of the management and hierarchy prevails within the organization. Within the higher level, there are the top managers, CEO as well as the board of directors. In the middle tier there are managers of the medium level and the lower level consist of the general employees and the executives (Napitupulu, 2015). Also various departments within Bentley include the marketing, finance, operations, human resources, sales and others.  The CEO and the board of directors' take every decision related to the company and the top level mangers devices the planning aspects. Also the interior designing and the exterior designs are planned by Darren Day and John Paul Gregory respectively which helps Bentley to earn advantage within their business environment.

The functions of each department within Bentley have been mentioned with the help of a tabular format: