Business Environment Assignment :Asda stores Ltd
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Added on 2021-01-02
Business Environment Assignment :Asda stores Ltd
Added on 2021-01-02
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BUSINESS AND BUSINESSENVIRONMENT
Table of ContentsINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................1P1.Different types of organisations, its purpose and legal structure...........................................1P2. Size and scope of different types of organisation.................................................................3LO 2 ................................................................................................................................................4P3. Relationship between different organisational functions and their link to organisationalobjectives and structures.............................................................................................................4LO 3.................................................................................................................................................5P4. Macro environmental factors affecting the business operations...........................................5LO 4.................................................................................................................................................7P5. Internal and external analysis for finding out the strengths and weakness ..........................7P6. Interrelationship between strength and weakness of business with external factors............8CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONBusiness environment is a term which describes the internal and external factors whichaffects the capabilities of a business organisation to survive, grow and maintain its position in themarket. The business environment consist of two factors micro and macro along with internalfactors that are within the organisation and external factors which are macro in nature whichaffects all organisation in the particular industry. The present report will cover the different typesof organisations, its legal structure and purposes, its size and scope. A segment of report will layemphasis on Asda stores Ltd., a supermarket retailer, a private company headquartered in Leeds,Yorkshire. UK's supermarket retail sector's will be evaluated and analysed and evaluated in thisproject report.(Eriksson, 2016).LO 1P1.Different types of organisations, its purpose and legal structureThere are different types of organisations operating in U.K. namely public, private, andvoluntary. These all differs from one another in respect of their scope, size, purposes and legalstructures. The various types of organisation are describes below:Public limited company: A company is said to be a public company when its ownershipis in the hands of large number of shareholders which include public, institutional investors,other private and public undertakings. The purpose of such organisations is to increase the value of the shareholders and theobjectives of such organisation is not only to earn profits but to create the value of the moneyinvested by the shareholders in the organisation(Botha, Kourie and Snyman, 2014). Publiccompanies also work for society welfare along with earning profits.The public companies in U.K. needs a registration certificate from the House ofCompanies and a minimum of 50000 pounds share capital to start a company. Public companiesneed to be compulsorily registered itself on the recognised stock exchange. The company needsminimum of two directors and a company secretary. These companies have to use plc in the endof its name which distinguishes it from private companies. The shares of such companies areeasily transferable by trading on stock exchange.For example :Burberry Group PLC, a retailer of clothing and accessories is a publiclimited company listed on London Stock Exchange and FTSE 100 whose shares are owned bydifferent investors and whose purpose is to build the brand value which ultimately will be seen in1
increase in the shareholders' wealth which is the primary objective of plc company(Wetherly,2014).Private companies: Private companies are those having separate identity whoseownership does not get dilute and remains in the hand of few people who forms the idea ofopening the company. In simpler words, the shares of these companies are not traded on thestock exchange.The purpose of such organisation is to increase the profit. Profit maximization is theultimate objective of such organisation.The legal structure of the private companies requires minimum of one natural personacting as a director and the appointing of the company secretary is optional for the company. Theshares of such company are not transferable by mere delivery, a whole process has to be gothrough for changing the shareholders' composition by altering the names of the shareholders inthe Memorandum of Articles and Association. They are not required to put plc in their names.For example, Asda is a private company although listed on LSE a supermarket retailer isa fully owned subsidiary of Walmart. The purpose of the organisation is to earn maximum profitsalong with providing quality services to its customers(Storey, 2016).Voluntary organisations: These are those organisations that neither works for themaximization of the shareholder wealth and not for the profit purposes but rather works for thebetterment of the society. This is the third sector which is formed for taking up those socialcauses which are met not by the either of the types of organisations.Voluntary organisation are trusts which is limited by guarantee and is incorporated andregistered as charitable organisation with the appropriate registration authority which ischaritable commission . It also involves the risk of individual's personal liabilities. For example Red cross, a charitable organisation working for the causes such ashumanity, helping people in crisis irrespective of the nationality and religion. It currently having32500 volunteers and 3500 staff members.Government organisation : These are those kinds of organisations in which majority ofthe control of management lies in the hands of government and it controls the board of directorscomposition(Eling and Schape, 2017).2
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