Business And Business Environment

By Samit Banerjee



Business and Business Environment









For an organisation, its environment is one of the most important factors that help the organisation to perform organisational functions or activities. An organisation has been defined with two environments that are internal and external. The internal environment of the organisation boosts up the organisation to perform managerial activities within the boundaries of the organisation, and the external environment even helps the organisation to customize extrusive environment as well as functions. In this detailed study, the learner would be described as the business environment regarding types of business available in the market. The learner will even present a detailed investigation of the chosen international hotel Premiere Inn to understand its business environment.



Task 1:

Explanations should include Public, Private and Voluntary sectors (P1) and for each of the chosen organisations, include the background details of the organisation; the products and services they supply; the size and scope of the organisation(P2); the vision, mission and business objectives.

For-profit organization:  The main objective of this type of organisation is to make a profit as much as possible. They offer their product for the money and recruited employees to enhance their production. No social or cultural aspect is related to this type of companies. Most of the companies operated in the market are the for-profit organization. One or two or sometimes a group of people run this type of organization.

Not for profit organisation: This type of organisation works in the market to facilitate social welfare rather than making the profit. Their main source of income comes from donation and funding. The basic concept of these types of organisation is to rotating money for their next objective rather than distributing between shareholders, employees (Mazzucato, 2015). To open this type of organisation individual must be the broad-minded and wise person.

Nongovernmental organisation:  This type of organisation is also similar to not for profit organisation, but their field of work is much broader than above. Sometimes they may be the national or international organisation, and government intervention is not done. They work on the ground of human rights, education, child labour and many more. Donation and funding is the main source of income for this type of organisation.

SME's: Small and medium-sized enterprises are those whose employee's capability is not more than 250, and annual turnover is not more than 50 million euro. This is small enterprises whose main objective is to gain in business, but innovation in this type of business is more than another sector.

Legal structure:

Sole trader: the Basic or primary form of the business is the sole trader where the owner is the main person and direct the business. The owner takes all the responsibilities and supervises all the activities of the business.

Partnership: Partnership is the form where two or more people are engaged in the business and operated the business with consulting with each other. All the shareholders or partners have the responsibility to run the business properly, and individual priority is not acceptable in this legal structure (Vitalis and Scott 2015). Two types of partnership are there that is the general and limited partnership. The general partnership is the simplest form of the partnership, and limited partnership is the mix of a general and limited partnership where limited partners are only there to invest in the business.

Private limited company: In this type, the business has been held privately in a small manner. Amount of share invested by the members is equal to the liability of the members. But the rule is that shares are not publically traded.

Public sector organisation:

Public sector organisation is run by the government and is for providing service to the people of the country. Revenue collected from the public sector is used in the development of the country. People also trust the public sector because of governmental involvement. Source of income of this type of organisation is the collected tax from the citizen of the country. The public sector is of different types few works for providing free facility to the people for enhancing their livelihoods like police, railway and many more. Others are providing the service to help the people in their daily work like banking service, insurance service and many more.

NHS is one of the biggest health service sectors of Britain established in the time of the Second World War. It was formed to provide free service to the injured people in the world war. Their main objective is to provide free service to the people of the United Kingdom (, 2018). It is a governmental sector and government run the business by providing necessary resources.

Size: NHS has been operating all over Britain such as  NHS Scotland, NHS Northern Ireland, NHS Wales.  The workforce is also high, and more than 1.7 million people work for the organisation out of which near about 70,000 nurses are working for the NHS. Their primary objective is to provide free and quality service to the people of the country, and it is the fully nonprofit organisation (, 2018).

Scope: NHS is the governmental institution and government run the business, so the scope of extension out of the country is not possible ever. Within-country they also expanded their business to the highest level. A chance of expanding the business is not possible. The main objective of the NHS is very clear; they want to provide more specific and quality service to the people of Britain.

Private organisation:

Private sector organisation is a successful organisation where they work for collecting money and develop their business. The private organisation is run by one or two people sometimes groups of people are also involved in this. Government also not interferes in the private business because they provide a huge amount of revenue to the government. Such private organisation is the premier Inn hotel in London which is the biggest branded hotel and performing the business in many countries.

Premier Inn hotel is the largest hotel chain in the UK and numbers of rooms; the resort is in the name of the Premier Inn. All over Britain, they provide their service, and over 700 hotels are there to provide luxury service to the people (Premier Inn, 2018).

Size: They have more than 70,000 rooms and 700 hotels all over Britain and employees working for them are more than 20,000 in number. Not only that they expanded their business in all over the world like Germany, India, Ireland, UAE and many more countries (Premier Inn, 2018).  Their main objective is to provide luxury and proficient service and to make the profit from the market.

Scope: as they already settled their business in different countries it is quite clear that the scope of expanding the business is high and they will expand their business to make more profit. The legal structure involved with the Premier Inn is the joint venture where they merged with the travel Inn and become premier Inn.

Voluntary organisation:

 This type of organisation mainly formed to develop social welfare and enhance the livelihood of the people. The main objective of this type of organisation is to provide justice and welfare. Source of income is donation and funding. UNESCO is the voluntary organisation which has international prospectus. 

Size: United Nations Educational, Scientific and Cultural Organization is a Paris, France based voluntary organisation. It has 195-member state and tech-associated members. The main objective is to promote the social, cultural aspect of society (UNESCO, 2018).

Scope: as UNESCO is the international voluntary organisation, their scope is much high, and reputation of UNESCO helps them to support the company. It is a nonprofit organisation with the vision to produce a clean, educated sustainable society.

Multinational companies: These types of companies are invested in different countries, but they do not avail their products for the business.

International companies: This type of companies export or import their products but did not invest in those countries.

Transitional products: This type of companies offers different products in different countries.

Supply and demand is the basic term of the business. Without demand, no company can supply their products in the market. Another term is the scarcity and scope (Lee et al. 2015). Scarcity increases the scope of the market, and sometimes the scarcity of a particular product is created by the company to make more profit


Task 2:

P3: Explain the relationship between different organisational functions and how they link to the organisational objectives and structure (M2, D1)


Business units or departments come together to fulfil the business objectives of any organisation. This presentation focuses on showing the interrelationship between the various business units and the way they are linked with their counterpart to help develop a good organisational structure for the overall success of the organisation.

Organizational Structure of Premier Inn Hotels