Business and the Business Environment PDF

Assignment front sheet
Learner name Assessor name
Zun Thet Hmu San U Kyaw Nyein Chan
Date issued Completion date Submitted on
9.9.2018 24.2.2020 24.2.2020
Qualification Unit number and title
Edexcel BTEC Level 5 HND Diploma in Business Unit-1
Assignment title Business and the Business Environment
In this assessment you will have opportunities to provide evidence against the following criteria.
Indicate the page numbers where the evidence can be found.
Criteria
reference
To achieve the criteria the evidence must show that
the student is able to:
Task
no. Evidence
P1 Explain different types and purposes of organizations; public, private and
voluntary sectors and legal structure 1 1
P2 Explain the size and scope of a range of different types of organizations 1 10
P3 Explain the relationship between different functions and how they link to
organizational objectives and structure 1 15
P4 Identify the positive and negative impacts the macro environment has
upon business operations, supported by specific examples 2 18
P5 Conduct internal and external analysis of specific organizations in order
to identify strengths and weaknesses 2 20
P6 Explain how strengths and weaknesses interrelated with external macro
factors 2 34
Learner declaration

I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.
Learner signature: Hlan Htet Pyae Wa Aung Date: 24.2.2020
Table of Contents
EXECUTIVE SUMMARY 6
INTRODUCTION 6
P1: EXPLAIN DIFFERENT TYPES AND TYPES AND PURPOSE OF ORGANIZATION, PUBLIC,
PRIVATE, VOLUNTARY AND LEGAL STRUCTURE. 6
BUSINESS 6
ORGANIZATION 7
FIRM 7
PUBLIC SECTOR 7
PRIVATE SECTOR 7
VOLUNTARY SECTOR 8
LEGAL STRUCTURE 8
SOLE TRADER 8
PARTNERSHIP9
CO-OPERATIVE 9
FRANCHISING 9
LICENSING 10
JOINT VENTURE 10
ORGANIZATION STRUCTURE 11
SIZE OF ORGANIZATION 11
SCOPE OF ORGANIZATION 11

P2: EXPLAIN THE SIZE AND SCOPE OF A RANGE OF DIFFERENT TYPES OF ORGANIZATIONS. 11
SIZE OF DIFFERENT TYPES OF ORGANIZATION 11
SCOPE OF ORGANIZATION 12
COMPANY PROFILE 13
VISION OF MAX CEMENT 14
MISSION OF MAX CEMENT 14
OBJECTIVES OF MAX CEMENT 14
MARKETING DEPARTMENT 15
HUMAN RESOURCE DEPARTMENT 15
FINANCE DEPARTMENT 15
RESEARCH AND ANALYSIS DEPARTMENT 15
PRODUCTION DEPARTMENT 16
P3: EXPLAIN THE RELATIONSHIP BETWEEN ORGANIZATION FUNCTIONS AND HOW THEY LINK
TO THE ORGANIZATIONAL STRUCTURE. 16
FUNCTIONS OF ORGANIZATION 16
ORGANIZATION STRUCTURE 17
THE ORGANIZATIONAL STRUCTURE OF MAX CEMENT IS DEPARTMENTAL. 18
INTERRELATIONSHIP BETWEEN DEPARTMENTS 19
P4 21
PESTLE ANALYSIS FOR MAX CEMENT 21
POLITICAL 25
ECONOMICAL 25
SOCIAL 26
TECHNOLOGY 26
LEGAL 27
ENVIRONMENTAL 27
SWOT ANALYSIS OF MAX CEMENT 27

STRENGTH OF MAX CEMENT 27
WEAKNESS OF MAX CEMENT 28
OPPORTUNITIES OF MAX CEMENT 28
TOWS STRATEGIC ALTERNATIVES MATRIX 29
DECISION MAKING PROCESS 32
REFERENCES 32
To: CEO and BOD
From: Business analyst
Report title: Business Environment of Max Cement
Executive summary
The Business Environment of SCG Cement company is written in this assignment. The
PESTLE, SWOT analysis and other parts of business and Max Cement consists of in this
assignment.
Introduction
In this assignment SCG cement uses the modern machines to produce a new product. The
organizational structure of SCG Cement is functional. The company consists of many
departments and areas to produce a good product and get many profits
There are different types of organizations and their purposes are also different.
So, it is needed to understand them. In relation to their purposes, three types of organizations
will be presented.
Organization is “a consciously social unit created by groups in society to achieve specific
purposes, common aims, objectives by means of planned and coordinated activities” (Mullins,
2007). (Lewis, 2007), defined organization as “two or more people who work together in a

structured way to achieve a specific goal or set of goal”. According to (Craig,1988),
organizations are “social arrangements for the controlled performance of collective goals”.
Therefore, organization is a group, including many people who work together to obey the
leader's decision and get the profits.
There are different kinds of organizations and their purposes are also not the same. There are
two main purposes of organizations which are for-profit and not-for-profit purposes.
Organizations is differentiated into three types based on their main purposes. They are for-
profit, not-for-profit and non-government organization (NGO).
Gitman, et al. (2018) stated that f or- p rofi t organization is an organization whose main goal is
to make money and profit. Business is a type of for-profit organization. Not-for-profit
organization is an organization that exists to achieve some goal other than the usual business
goal of profit (Gitman, et al., 2018). For examples, the goals of not-for-profit organization might
be feeding the poor or preserving the environment. Non-government organizations (NGOs)
are not-for-profit charities that deal with many different issues including social injustices and
they do their own fundraising and do not obtain any money or support from the government
(BBC, 2019).
Differences between for profit, not for profit and non -government organizations
The purpose of for -profit organization is to get many profits, not for profit organization and
non-government organizations are to provide the public needs. For-profit organization give the
government taxes, Not -for profit and Non -government organization do not give the taxes.
Area of operation for profit organization is unlimited, not for profit and non -government
organizations are limited, under the government.
For profit organization is distribute the shares to owners, stakeholders and shareholders, not
for profit and non -government organization do not distribute shares.

In conclusion, organizations have three types called for-profit, not-for-profit organizations and
NGO and each have different purposes. There are also different sectors namely private, public
and voluntary sectors.
Public sector organization is an organization in the state sector of the economy (Worthington &
Britton, 2015).
Public sector organization is created by the government which does not have profits as their
goal that have political purposes. They include municipal undertakings financed by rates, taxes,
government grants, loans and central government departments which are ‘state-owned’,
financed by funds granted Parliament (Worthington & Britton, 2015).
The public sector is the part of the economy under the control of the government and its
agencies, where the state establishes that runs off the (Worthington & Britton, 2015). The private sector is the part of the economy where ownership and control of the organization
are in the hands of private individuals or groups and where profit-seeking is a central- goal
(Worthington & Britton, 2015).
The voluntary sector is the part of the economy where the economic activity that is carried out
by not-for-profit and non-governmental organizations such as charities, voluntary bodies and so
on (Worthington & Britton, 2015).
The voluntary sector is comprising those organizations, including charities, voluntary bodies and
community businesses that are not-for-profits enterprises and non-governmental
(Worthington & Britton, 2015).
P- 1.2
There are different types of businesses and legal structures. It is important to know the
legal structures of businesses. Different forms of businesses will be described in association
with different legal structures.
Business is a type of for-profit organization. According to (Lewis,2007), business is defined as a
particular area of work or activity in which the aim is to make a profit.

There are different types of businesses. Based on their different types, their legal structures will
also differ. Legal structures of businesses can be explained in terms of limited and unlimited
liability.
Hayes (2019) explained that limited liability is a legal structure for an organization in which a
corporate loss will not exceed the amount invested in a company and if the company fail, the
personal assets of investors are not threatened. Hecht (2016) described that unlimited liability
involves general partners and sole proprietors who are equally responsible for debt and
obligations accrued by the business and if the business cannot, their personal assets will be
used to pay back a loan.
According to legal structures, there are three types of business. They are sole trader,
partnership which are unlimited liability and limited company which is limited liability.
A sole trader is a business owned by one individual who is self -employed and may employ
other people on either a full time or a part-time basis, an unincorporated form of business
organization owned by one individual, another name is called a sole proprietorship
(Worthington & Britton, 2015). Table-1: Advantages and Disadvantages of Sole Trader Advantages Disadvantages
Smallest and most common types of
business organization
Failure risk and Limited skill
Owned and operated by one person Unlimited personal liability for the
debts of the business
Making own decision and Easy to set
up
Due to the lack of sharing knowledges
and ideas with other persons
The owner and the business are the
same
It has unlimited liability for the debts
of the business and these are the full
responsibility of the owner.

Do not require a lot of money to set
up
The owner can make wrong decision
making
Money usually provided by the
Owner
The business slows or stops if the
owner is absent or ill.
Control the number of employees It is difficult to expand the business
and to raise capital Source: Prepared based on Worthington & Britton (2015); Uzuegbu (2014) ; Stimpson & Smith
(2015).
Partnership is the relation which subsists between persons carrying on a business in common
with a view to profit, like the sole trader, this form of business organization does not have its
distinct legal personality and hence the owners, the partnership has unlimited personal liability
( Worthington & Britton, 2015), so that an unincorporated form of business organization
comprising two or more individuals working together for mutual benefit (Worthington &
Britton, 2015), so that each partner liable in full for the whole debt and each, in turn, may be
sued or their assets seized until the debt is satisfied ( Worthington & Britton, 2015), Table-2: Advantages and Disadvantages of Partnership Advantages 1.Small business 2.Tend to be a little larger
than sole traders 3.Making a good decision
for the business 4. Two or more people run
the business is to make a
profit 5. Partnership Agreement
or Deed of a partnership may
be used 6.Risk sharing 7.Control the number of
employees