Assignment : Business and Business Environment
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Added on 2020-10-05
Assignment : Business and Business Environment
Added on 2020-10-05
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BUSINESS AND BUSINESSENVIRONMENT
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3Explain different type, size and scope of an organization..........................................................3TASK 2............................................................................................................................................6Interrelationship of the various functions within an organization and how they are linked toorganizational structure...............................................................................................................6TASK 3..........................................................................................................................................10Positive and negative impact of macro environment on business operations...........................10TASK 4..........................................................................................................................................13Determining the internal strength and weaknesses and explaining its interrelationship withexternal macro factors...............................................................................................................13CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16
INTRODUCTIONBusiness is a process, which is performed individually or by group of people in order tomake money that can be done by selling their services and products in the market to customers.The proprietor is personally taxed on all income from the business. To run any businesseffectively, it is very important to have a good team and business environment. This can help inachieving their goals and objectives on time. Business environment includes the internal and external factors, which can affect theirfunctions including their employees, customers, management and their overall performance inindustry. Maintaining business environment is very important for owner to run it successfully.Present report will focus on business of JP Morgan Finance and Investment. It willdiscuss about various types of organizations and its size and scope. Interrelationship of variousfunctions within JP Morgan Finance and Investment and its positive and negative impacts onmacro environmental factors and will analyze its strengths and weaknesses. TASK 1Explain different type, size and scope of an organizationOrganization is a whole entity, which consists of different people working together fortheir goals, for example, an institution that has its own set of objectives to achieve and these arealso linked with their external environmental factors as well in order to work effectively.Organization must have a great team with high enthusiasm. The main purpose of an organizationis to achieve their targets with effectiveness that can help to compete with their competitorspresent in industry (Bull and et.al., 2016). Organizational business exists to make a profit fromthat business which can be used for the enhancement of firm. Its main purpose is to increaseproduction rate and profitability rate in achieving their targets. There are various sectors in which an organization can run their business successfully.These can be public, private and tertiary sectors respectively. Sole TraderSole trader is the simplest type of business structure, which can be used by any person. Itis basically run by one individual and owns the entire business. He is legally responsible for theissues, which can arise. In this type of organization all the decisions and planning related tobusiness is taken individually. Although they can hire employees who can work for theircompany.
Advantages:There are various advantages of this type of business organization, such as there isonly one owner and all the earned profit is his only. It is less expensive and requires less cost toset up this business. It is easy to change the legal structure later if circumstances change. Disadvantages: The main disadvantage of this business is to give limited capital investment. Ithas unlimited liabilities. They are not seen as a separate entity by the law (Sole proprietorship –advantages and disadvantages, 2017). Example: Kurt Geiger is a sole trader, which is a shoe company that is running their businesssuccessfully in United Kingdom. They run their business in private sector. PartnershipIt is a type of business organization in which there is two or more individuals worktogether with the purpose of making a good revenue and profit and to run their businesssuccessfully in industry. There are basically two different types such as general and limitedpartnership business. All decisions made for business is done by mutual agreement (10 supersuccessful co-founders and why their partnerships worked, 2016). Advantages:There are various advantages of this type, for example, it becomes to start anybusiness. Availability of capital is more in partnership. It also helps in tax relaxation as it isoperated between two or more people. Disadvantages:This can include various factors such as liability of partners for debts ofbusiness is unlimited in this type. There can be a dis-agreement between them regarding theirdecisions and planning. Example: The best example of partnership business is the Microsoft Company, which is run byBill Gates and Paul Ellen. They run their business in private sector (Bull and et.al., 2016).Limited CompanyLimited company is a company limited either by shares or by guarantee. The liability ofits members is limited to the amount invested or the guaranteed by them in the company. Alimited company is a separate legal entity, distinct from its owners. Members are not responsiblefor their actions and company can enter into contracts in their own name and is responsible forits debts and liability. If a limited company becomes insolvent, then directors and members arenot liable for the unpaid amount (Chang, 2016). It is mandatory to register a limited company.
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