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Assignment on Business and Business Environment - McDonald

   

Added on  2020-06-04

16 Pages4510 Words25 Views
Business andBusinessEnvironment

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Various type and purpose of enterprises...........................................................................1P2 Scope and size of different type of firms..........................................................................3TASK 2............................................................................................................................................4P3 Relationship between various organisational functions and their link with structure andobjectives of firm....................................................................................................................4TASK 3............................................................................................................................................7P4 Positive and negative impact of macro environment on business and its activities..........7P5 External and internal analysis of organisation for identifying its strengths and weakness9P6 Interrelationship of firm's strengths and weakness with external elements of environment..............................................................................................................................................10CONCLUSION..............................................................................................................................11........................................................................................................................................................13

INTRODUCTIONSum of all the internal and external factors that directly affect the activities of anenterprise is known as business environment (Chavis, Klapper and Love, 2011). Keeping allthese elements in the mind before execute business activities is very necessary. Success ofbusiness operation is depend on these and the changes that take place on these elements.Basically these factors affect the activities of a business who is operating on an internationallevel. Main reason behind this type of evaluation is to make better and effective strategies for thebusiness. This provide guidance to the business manager and help him in taking importantdecisions about the company (Business environment, 2017). McDonald an American fast foodrestaurant is taken under this report for study. Today firm is providing its services through morethan 36,900 stores in number of countries. Company serve more than 69 million customers andearn number of profits. Burger a private firm dealing in same sector is the another organisationwhich is taken under this report. Different type of enterprises their main purpose of operating,size and structure is also detailed in this. What is the relationship among various function of acompany and they get affected by its structure and size is also mentioned in this essay. TASK 1P1 Various type and purpose of enterprisesBusiness activities are executed by individuals or group of individuals with the aim ofearning of number of profits. For this research is conduct by business owner to first identify thefeatures which customers want in the company's product. Production, operation, selling anddistribution are number of activities which are executed in an organisation. Level andeffectiveness of these operations is affected by the size of the firm. Big enterprises execute theseon a large scale while small firms operate this on a small basis. Effective implementation of allthese activities is very necessary as this decide the success of company's product. Earning moreprofit or generate large number of revenues is one of the main purpose of every businessenterprise. Further different type of companies with their main purpose can be understood by thepoints stated below: Private limited company: Firms which are controlled by the private hands of anindividual or group of individual is known as private limited company. These type of companiesdo not invite public for buying the shares. Number of shareholders is restricted to 50 under this.1

Profit earning is one of the main purpose of these type of companies. Burger King is an exampleof this. Further, this private organisation is divided into following parts:Sole trader: When all the activities of a business are managed by an individual and he isthe only one who suffer all the losses and gains rise from that business than this is knownas sole trader. All responsibility lies on the shoulder of that individual. Huge amount ofprofits and quick decision making is one of the main advantage of this. Partnership: When two or more than two individuals decide to start the businessoperations than that come under the concept of partnership. Main advantage of this is thatit creates synergy which help in taking effective business decisions. Before starting thecommercial activities a written document called partnership deed is signed by all theindividuals. This include the name, address, share of profit of every partner. Mainadvantage of doing this is that it remove the chances of rising conflicts and at the sametime clear all the roles and responsibilities of every partners which increase theeffectiveness of business activities. Franchising: This is one of the popular form of private business in today's businessenvironment. Under this concept, owner of a popular and positive brand image give rightto a person called franchisee to use his brand image for selling his products for somegiven time duration in exchange of some consideration known as royalty fees. McDonaldis an example of this concept. Public company: Enterprises which are controlled by the government (wholly orpartially) is knowns as public limited firm. Produce innovative product in order to fulfil therequirement of customers is one of the main objective of these type of companies. Thesecompanies issue shares and invite general public to buy the same for raising capital. A workcalled PLC is kept by the company after its name. For taking suggestions and approval of theshareholders a meeting called annual general is meeting is held by the manager of companyevery year. In that meeting critical issues of the company are discussed in that meeting andsuggestion of shareholders is taken by the company about the expansion of business activities.McDonald is a public firm. Legal structure of a public firm is stated below:It is very essential for a public limited firm to have at least two board directors for takingdecisions about the business activities.All the important decision are taken by the state government in this.2

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