Introduction

This assignment covers various issues relating to business and business environment. There are
various types of organization those are public, private, voluntary sector and there have distinct
legal structure. There have various size and scope of different types of organization. The
assignment is related with a case study based on the organization First Group. There have
analyzed various positive and negative impacts of macro environmental factors. Internal and
external analysis of First Group is also done in the assignment. Strength and weakness of macro
environment is also analyzed in the assignment.

P1. Different types and purposes of organizations; public, private and

voluntary sector and legal structure
Public sector

The public sector is authorized, controlled and managed by the government authority of the
respective country. The national resources, military and police, education board and so other
government organization are controlled under government authority (Craig et al, 2007). These
are known as the public sector. The main aim of the public sector is to develop socially and
economically. From the public sector the main portion of the economy is collected. For an
example it can be said the around 20 percent of economy comes from the public sector of US.

Private sector

The private sector is also another most important sector of a country. But the private sector is
operated mainly by the individual or the companies for their own purpose, motive and aim apart
from the government. These private organizations are mainly operated with a view to making the
profit for themselves and own development (Craig et al, 2007). It is also the par of national’s
economy but controlled and managed by the private business organization or individual. The
goals and objectives of the private sector is to make money rather than to make the social
development. The price of the goods manufactured in the private sector goes up and down to
keep balance with the customers demand and choice.
Voluntary sector

The voluntary sector is also recognized as the nonprofit sector or the third sector of the economy
or the country. The motto of the sector is to undertake the social activity by the organization
which are known as non-profit or the non-governmental. A voluntary organization can be
characterized by the following point:

 Autonomy from the state

 Non-profit organization
 Self-governance through the board of h unpaid trustee
 Benefit for non-members

Sole trader organization

Among the classification of the forms of business organization the first one comes the sole trader
organization. Sole proprietorship can be defined as the business organization which is owned,
managed and controlled by a single person with all authority, responsibility and risk. “Sole”
means single and “proprietorship” means the ownership. It means only one person or an
individual becomes the owner of the business (Corbett et al, 2011). The individual who owns and
runs the sole proprietorship business is called a “sole proprietorship” or “sole trader”. In the sole
proprietorship business it is said that the proprietor is all in all. He has the authority with him so
it is possible to exercise better control over business (Craig et al, 2007).
Partnership organization

Partnership is an association of two or more individuals (but not more than 20) who agree to
share the profits of a lawful business which is managed and carried on either by all or by any, or
some of them acting for all (Craig et al, 2007). A minimum of two people is required to start a
partnership business. The maximum membership limit is 10 for banking business and 20 for all
other types of business. The relation between the partners of partnership firms are created by
contract. The partners enter into partnership through agreement which may be verbal or written
or implied (Bomberg et al, 2009).
P2. The size and scope of a range of different types of organization
Large organizations: in the large organizations the number of employees will be equal or greater
than 250 and in those organizations where the number of employees is unknown for them the
amount of revenue should be within £22.8m/$22.8m. For the large organization the profitability
ratio as well as the market growth and price of share will be higher. And the competition among
the large organizations is too high (Craig et al, 2007). Moreover the business organization needs
to follow the strategies to attain the competitive advantage.

Medium organizations: Medium organizations can be defined as where the number of employees
would be between 50 and 249 employees (Weiss and Adam, 2005). In that business organization
where the number of employees is unknown the revenue should be greater than or equal to
£5.6m/$5.6m and less than £22.8m/$22.8m. These types of business organizations also want to
maintain the sustainability in the respective market.

Small organizations: small organizations can be stated as where the number of employees would
be less than 50 in comparison with revenue. In that business organization where the number of
employees is unknown the revenue should be less than £5.6m/$5.6m. In the small organization
the terms of laws and regulation is little bit light here (McNally and David, 2003). If the small
organization is owned by one entity ten motives is to maintain a sustainable condition in the
market. The profitability ratio should be within proper range so that the market share and growth
are kept in place.

Difference between franchising, joint venture and licensing

Basis for comparison Licensing Franchising Joint Venture

Meaning When a company This is one kind of It is the organization
sales its license to agreement where which mainly forms
another company to franchisor permits or with two or more
provide certain rights occupies to franchisee organizations.
to use property or to perform its
other assets. business model by
providing a certain
amount of fee (Craig
 et al, 2007).
Governed By Contract Law Franchising Independent
regulations / organizations rules
Company Law. and regulation.
Registration Not Necessary Mandatory Mandatory
Training and Not Provided Provided May be provided or
support not.
Degree of control Licensor has the Franchisor has control In the joint venture
degree of control and over franchisee rights two companies has
its business. and regulation. equal control and
responsibility to each
other.
Process Involves one time Needs ongoing Need to accumulate
transfer of property or assistance of its resources.
rights. franchiser.

Fee structure Negotiable Standard Negotiable.

P3. Different organizational functions of First Group

1. Marketing

First Plc which is known as first company is one of the largest company of UK. Moreover it is
also popular for being the largest surface transportation organization. First Plc provides the rail
service that includes the commuter services and regional intercity and so on (Bomberg et al,
2009). Among the regional intercity services there are first great western, first Trans Pennine
express and so many services. First capital connects and first scot rail and hull trains are also one
of their services (Craig et al, 2007). Though the first Plc is a global organization still it is looking
forward to provide the best service from the local.

2. Production/ operation
This first Plc is the largest operating transportation systems among the running local bus services
of UK. Around three million numbers of passengers are travelling by 9000 buses in a day from
the major cities and towns (McNally and David, 2006). This organization has also the service of
freight business through railway such as the Croydon Tram link network which is famous for
carrying a huge number of passengers throughout a year (Craig et al, 2007). This number of
passengers is nearly about 26 million. Furthermore first Plc is providing the special services for
the students in North America. Everyday around 4 million students are travelling through the
first plc. This first Plc is renowned for providing the safe, reliable and sustainable transportation
services. The first Plc is following the functional and divisional approaches for their operation
within the organization.

3. Finance

As it is one of the largest transportation organization in UK the revenue of this organization will
be that bug too. Moreover this transportation services are not only operated in UK it also has
services over through the world (Bindi and Federiga, 2010). The amount of revenue is nearly
about $5 billion per year. A huge number of passengers are travelling daily to their destination
through the first plc. The first plc is that transportation that provides services to 275 passengers
over through a year. This number of passengers is considered as one fourth of one quarter of the
total passenger’s network list (Corbett et al, 2011).

4. Human resource

As this is one of the largest businesses organization is UK so the number of employee will be the
largest too. It is said that the number of employees working in the organization or in the
transportation service is nearly about 137000 staffs. So it can be said that it is an organization of
huge number of employees (Weiss and Adam, 2005). To maintain all of the employees a proper
and trained human resource management is required also. Apart from this as it a service
providing organization the employees should be well trained and groomed up so that the
passengers could not complain (Craig et al, 2007).
P4. Positive and negative impact of macro environment of First Group
PESTEL stands for the factors of political, economic, social, technological, environmental and
legal. It is also recognized as a framework of factor that the business organizations used to
analyze and monitor the macro environment factors (McNally and David, 2003). The first Plc is
also doing the PESTEL analysis for the betterment of the macro environment; the factors of
PESTEL analysis is following below:

Political factors

Politics and the political condition of a country have a great impact on the development of the
business organization. First plc is convenient with the political factors of UK. Moreover it can be
said the politics and political factors should not be considered as the hindrance for the first plc
(Duden and Von, 2012). Among the political factors there are some major issues which are
taxation policies, the terms and conditions of foreign exchanges and so on.

Economic factors

First Plc has the fame of responding to the customers demand on time. As for this reason it has
become the leading business organization in the transportation industry (Bock and Johanna,
2011). The inflation, recession, employment growth rate can be determined by the economic
factors. First plc brought the revolunatiory changes in UK by discovering the vehicles that looks
like the tram but can be used in the normal road too.

Social factors

The customers which are blessings for any kind of business organization belong from the society
(Tucker and Irvin, 2007). The norms, trend and tradition should not be hurt by the activities of
the business organization. This first plc provides a special passes to the senior citizens of UK
with that passes those people can travel free. And this trend has become as popular as those
people are satisfied with the service and it is also safe and convenient also.
 Figure 1: Elements of PESTEL analysis

Technological factors

For the expansion of any business organization the factors which is the most significant is the
technological factors. Without the technological support and modern advancement the
development is impossible (Paul and Johnson, 2005). In the business world it is really required to
keep maintenance with the technological development. As with the technological development
any business organization can reach the higher position of the desired destination.

Environmental factors

It is the responsibility of the business organization to look after the environment so that by any of
their work the environment should not be polluted (Altvater, 2003). Among the external factors
of the macro environment the environmental factors play the vital role. As the first plc is a
transport organization so it is natural that fuel, oil and CO2 would be used in this industry that is
the main reason for the climate change.

Legal factors

While operating a business organization the management authority need to look after the terms
and conditions of the respective country and business operating law (Bindi and Federiga, 2010).
The government authority has some prescribed laws and regulations for all kinds of business
organizations. Among them first comes the required requirements for the bus that it is eligible to
run on and carry passenger (Craig et al, 2007). Moreover it is also said that first plc has to buy
carbon credits and those credits will allow the companies to generate the required and specific
amount of carbon emissions.

P5. Internal and external analysis of first Plc

SWOT analysis stands for the strengths, weaknesses, opportunities, and threats and a way of
planning that considers those four elements of the business organization (McNally and David,
2006). For every kinds of business organization the SWOT analysis has been done. The factors
of the internal and external factors for the first plc are following below in the consideration of
SWOT analysis:
 Strengths

When the first Plc will be able to make the desired place in the customer’s or the traveler’s mind
this will be recognized as branding. This branding will influence on the decision of the traveler’s
gradually (Weiss and Adam, 2005). This first Plc is renowned all over the world. It has three
million numbers of passengers are travelling by 9000 buses in a day. It can be said that the first
plc has the world wide recognition that is really mandatory for the business expansion.

 Weakness

The political hindrance and the way of providing the service could be the weakness for the first
plc. The negative impression of first Plc and the involvement of the government authorities can
be a weakness. Being an internationally recognized company the first Plc can easily grab the
highest and maximum facilities from the competitive market (Duden and Von, 2012).
 Figure 2: Elements of SWOT analysis

 Opportunities

The expectation of the management authority of the first Plc is to reach to the expected amount
of profit by the fiscal year. For that reason their operating strategy and techniques should be
developed as well; so that the first Plc can face any unwanted situation as well (Bock and
Johanna, 2011). Being one of the biggest business organizations in the market it is very common
to have the maximum amount of shares in the respective market.

 Threats

For any kinds of business organization the main threat is the competitive business organization.
First Plc is not the exemption. High price of fuel and as a result the transportation cost increases
that lead the low mobility of people (Tucker and Irvin, 2007). Gradually the business
organization will face loss and in some days this organization will be found out shut down.

P6. Explanation strength and weakness interrelate with external macro

environment factors of First Group
Strengths and weakness

The first Plc has the world wide recognition for their service providing. The standard of
providing the service is the strength of the first plc. And also the popularity and fame is
recognized as the strength. And for the weakness the vehicles that are used for the transportation
should be of best quality (Paul and Johnson, 2005). The competition with other business
organizations in the competitive market is a major threat for first Plc too. This is considered at
the strengths in consideration of SWOT analysis for the first Plc Company.

Environment factors of PESTEL

Among the factors of PESTEL the environment factors is mainly related. Human factors are
responsible for the climate change the government authority, human factors and also the business
organization are trying to make the environment good (Altvater, 2003). But it is tough to manage
all of these for a single entity. Moreover the business organization also has the responsibilities
towards the society which they need to achieve.

Conclusion
So finally it can be said that all types of organization irrespective franchising, joint venture and
licensing there have to maintain some rules and regulation. Environmental analysis PESTEL and
internal analysis SWOT have been done in this assignment. First Group is the organization where
there environmental analysis as well as SWOT analysis has been done effectively in this
assignment.