Business environment is termed as combination of micro and macro factors which impact on functions of a company either internally or externally. These attributes include competitors, technology, legislations, stakeholders and more which effects profitability and productivity of enterprise in a wide manner. It influences decision making process and operational activities of organisations. In this report three organisations are taken each of private, public and voluntary named by Sainsbury, NHS and RSPCA. All these companies have different business criteria according to size, scope and purpose (Chetwood and et. al, 2014). In addition to this, present assignment is divided into different tasks that cover interrelationship of business objectives and major functions. Further it also reveals the positive and negative impact of macro environment on operations also discussed.
P1 Types and purpose of organizations
There are various types of companies working in UK marketplace which play an important role in increasing the GDP of country. Generally, these enterprises are classified into private, public and voluntary as per different aspects. All firms have their own objectives and goals to carry business operations as per purpose and legal structure. An analysis on enterprises of these three sectors is given below:-
Organisations under private sectors are controlled and managed by a single owner. Therefore, due to sole proprietorship contribution of legal authority and government is consequently few as compare to public and voluntary on (Crane and Matten, 2016). The main purpose of these enterprises is to earn more and more profit as well as increase growth of business in other countries. Sainsbury is one of the leading retailer companies of UK among other private enterprises. In terms of legal structure business of private companies constitutes partnership, sole proprietorship and joint stock companies. In partnership business, a firm has two or more owners who take equal responsibilities in running operations. While in joint stock organisations, business entity has separated individuality in terms of legal. Business of such companies is established by shareholders. Along with this, business of such firms is divided into two types of firms that are limited either by guarantee or share.
Sainsbury is the third largest supermarket chain headquartered in London. This firm was founded by John James Sainsbury in the year 1869. In order to compete with competitors like ASDA and TESCO, it has launched 8000 of products including electronic appliance, toys, sports, leisure and finance. But like other retailers, it doesn't offer services like catalogue to customers. In 1995, Sainsbury was the largest retailer firm of UK but due to rise in competition it has now comes on second position. Therefore, the main purpose of this company is to get that position again. For this process, it has launched various new products and offer online services for customers. This would help in earning maximum profit.
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Companies under public sectors also play an important role in increasing GDP of a country. Business of these organisations are regulated and controlled by government in a legal manner. The main purpose of such enterprises is to develop societies as well as earn profit with high efficiencies (Gharajedaghi, 2011). Along with this, they are always focused on providing welfare to mankind and improve their condition. Industries include in this sector are education firms, public banks, regulatory organisations, electricity boards and more. National Health Service i.e. NHS is an example of public sectors. As related with legal structure, public organisations include two types of form that are central and state government. In this context, role of central government is to regulate transactional activities of industries as well as collect tax from there. While under central government, regulatory bodies regulate whole operational functions of state government as well.
NHS mainly works for providing various kinds of services related to health either at zero minimum cost (Zeng, Li and Duan, 2012). This firm is located at several locations and headquartered in England, UK. It always renders free facilities to citizens and other people in emergency case for their treatment. The main motive of this institute is to develop high innovative techniques for providing effective facilities related to health care. It also delivers basic facilities of medical to visitors and people. In addition to this, it focuses on improving healthy lives of person also.
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