This assignment explores the differences between public, private, and voluntary organizations, including their vision, mission, size, scope, and stakeholders. It also discusses the relationship between different organizational functions and their impact on the structure of the enterprise.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Business Environment
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 P1. Different Types and Purposes of Organisations...............................................................1 P2. Size and Scope of range of different types of organisations............................................3 TASK 2............................................................................................................................................6 P3. Relationship Between Different Organisational Functions..............................................6 ..........................................................................................................................................................8 TASK 3............................................................................................................................................9 P4. Identification of impacts of macro environment..............................................................9 TASK 4..........................................................................................................................................10 P5. Internal and External Analysis.......................................................................................10 P6. Interrelation of Strengths and Weaknesses with External Macro Factors.....................12 CONCLUSION..............................................................................................................................13 REFERENCES..............................................................................................................................15
INTRODUCTION Business environment can be defined as combination of all internal (employees, suppliers etc.) and external forces (government policies, supply and demand etc.) which are directly or indirectly affecting the smooth functioning of the enterprise. All this factors are studied so that competitive advantages can be accomplished against rivalry in the intense competitive world. By carrying out business environment forces effectively best results can be attained and huge profits can be maximized. In order to survive for longer time period every small or big administration evaluate this factors on continuous basis. As perthe given scenario for public (BBC), private (Amazon)andvoluntary organization(Oxfam) aretaken.Thisassignmentcoversvision, mission, size, scope, legal structure, objectives, stakeholders etc. for each enterprise (Ciambrone, 2018). However, Pestle (Political, economical, social, technological, legal and environmental etc.) analysis are studied in order to frame unique strategies accordingly. Moreover, SWOT (Strengths, weaknesses, opportunities and threats) analysis areexamined in order to grab the loop holes as opportunities and designing policies for opportunities prevailing in the global market. Whereas, for a choose administration discuss business functions and their benefits and drawbacks. Additionally, how business functions inter-connected with each other affect the structure of the enterprise is explained. TASK 1 P1. Different Types and Purposes of Organisations The differences between private (Amazon), public (Marks and Spencer) and voluntary (Oxfam) organization by including vision, mission, scope, size, stakeholders targeted customers etc. are explained as follows: BasisPublic organization (BBC) Private organization (Amazon) Voluntary organization (Oxfam) MeaningThoseadministration whichareunderthe control of government areknownaspublic organization.Inthis Here,theownerhas completecontrolon businessoperations from maximization of profitstoissuingof Incase of voluntary enterpriseindividual with their keen interest come up to be a part of the firm and enter into 1
case fifty one percent moreofsharesare hold by central or state government. shares in the market. Thistypeoffirmis knownasprivate organization. There is nocontrolof government bodies on their working. a agreement. They do not issue shares in the marketanddoesnot aiminmakinghuge revenuefromthe people(Crowther, 2018). AimToprovidejob opportunitiestothe citizen of the nation is theaimofpublic administration. In order to maximize huge profit from their goods and services is themainmotiveof privatefirminthe global market. Voluntary organization main aim to serve best services to the society sothatfromevery aspectsup-graduation can be done. Advantages to people working in the firm Peopleworkingin publicenterpriseare given gratuity, pension etc. Good salary package, careergrowth, competitive environmentetc.are providedtothe employeesofthe private organization. Honour,respects gratitudeisreceived from the people living inthecommunityor society. Minimumnumberof members need to form a enterprise. Sevenmembersare needed in Publicfirm whichisunderthe supervisionof government bodies. Inprivatefirmtwo members are required to form a company. At-leastseven membersare mandatory in order to openaNGOor voluntary firm. Issue of prospectusThose business whose operationsareunder the control of central andstatearenot allowed to issue shares As and when required privatebusiness concern issue shares in theopenmarketas they are free enough to Here,noissueof prospectusisdone. They collect funds or receivemonetary amountfrom 2
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
in the market (Falkner, 2017). invitepublicfor subscriptionoftheir shares. donations,charity clubs,voluntary contributions etc. Sourcestoraise monetary value Penalty, tax duty etc. arethedistinguished sourcesfromwhich funds can be gathered forgrowthand developmentofthe business. By issuing shares and debenturesinprivate administration they are abletocollecthuge funds. Throughdonations, charity,contributions frommultinational companies etc. are the varioussourcesby whichmoneycanbe accumulated. The growth of international business environment such as tax, legal and taxation issues, exchange risks, cultural differences, political risk etc. are affecting private (Amazon), public (BBC) and voluntary(Oxfam) organization at a large scale. The continuous fluctuation in this external forces directly impact the growth and development of the business in the cut throat competitive world. In order to overcome this business concern make effective tactics so that smoothlybusinessoperationscanbecarriedoutacrosstheboundaries.Neglectingthis international business environment can turn out to be a big loss in the open market place. Competitorscaneasilythroughthebusinessfromthemarketifinternationalbusiness environment are not scanned properly before formulating the business strategy. P2. Size and Scope of range of different types of organisations AMAZON: Background of Amazon: Jeff Bezos is the CEO of Amazon which came into existence in the year 5thJuly 1994. Amazon is the largest online store which deals in every kind of product and are able to satisfy the emerging needs, demands and preferences of the customers. This successful online business is situated in Washington, United Kingdom (Hillary, 2017). It is a American multinational technology companywhose main focus is on digital streaming, artificial intelligence, cloud computing and e-commerce. Here, are some of the products which sold by the organization are, consumers electronics, Amazon prime, retail goods, Amazon Art, Amazon Drive etc.This 3
particular business associates sell their own good along with other companies product. It provides a large platform where other enterprises can sell their goods and can earn huge profit. Product and services offered to the consumers:The numerous products which are sold by Amazon for their potential customers are, Amazon music unlimited, toys, electronics, luxury beauty products, sports, Amazon drive, Amazon Art, women clothes, kids wear, men cloths etc. Company is able to satisfy the emerging needs of the consumers on regular basis due to which Amazon is able to generate huge profit in the neck to neck competitive world. Size:Amazon is serving it's services across the globe and round 647,500 employees are working day and night to come up with innovative idea. In the cut throat competitive world this online store is able to generate revenue of US$232.887 billion which is a positive sign for the company. Scope:The scope of Amazon is to provide wider platform to other business so that they can easily sell out their products on online websites. Vision:To become the global first consumer centric enterprise is the vision statement of Amazon. The advantage of setting up vision statement is that company and staff members come with innovative thought to full-fill the vision. Mission:To provide potential customers with best quality product at affordable price in utmost convenience manner. This statement motivates the employees to perform better every day in the competitive market place. Administration objectives:To sustain in the intance competitive world Amazon need to draw realistic objectives so that they can be achieved. By setting this strategies are designed accordingly so that employees of the administration can easily attain them in the open market place (Kolk, 2016). Set standards encourage the staff members to use the resources appropriately as well as push them to increase their workforce efficiency. The formulated objectives are as follows: ï‚·Amazon is adopting of modern tools and techniques through which amount of non- renewable energy can be reduced or decreased. ï‚·To open large job opportunities for unemployed people so that living standard of the people can be raised respectively. 4
ï‚·The priority of Amazon and their objective is to satisfy the customers demand as well as to investigate their emerging preferences. By doing so more and more customer base can be raised for the companies goods and services. Organizationalstructure:HierarchicalstructureiscarriedinAmazonworking premises. By adopting this company is benefited at a large scale and skilled and capable staff members are retained for longer time period. Proper information is carried out through this organizational structure which results to attainment of set objectives. Also, this structure helps in maintaining managerial integrity which is a positive sign for the enterprise. Informationrelatedtostakeholders:Ineveryorganizationstakeholdersplaysa significant role as they are the real investors in the administration. In case of Amazon the stakeholders are, strategic partners, customers, staff members, directors, contractors, etc.They are the key people who actually support the business in the cut throat competitive world in terms of monetary terms. Moreover, the power of stakeholders affect the administration success and failure of the business. This in effective nature aid the company to gain competitive advantages against rivalry while ineffective stakeholders close the door of success in the global market place. BBC: Vision and Mission:Vision of the firm is to take effective and appropriate pride through delivering enhanced, advanced and quality services which provide customers with value for money. Moreover, it includes appropriate collaboration to achieve greater results. In addition to this, mission of BBC is to effectively provide its customers with impartial information and news which helps in engaging people globally and support learning for individuals of every age. Size and Scope:In terms of size and scope, the firm has a huge quantity of staff, whose number goes beyond 35,000. In addition to this, all the staff members are hired on contractual basis, which helps the firm in governing a high range of skilled talent. Organisational Structure:The hierarchy of BBC starts with its trust, which is the most respected and authoritative group within the company, which plays an appropriate role of evaluatingperformanceoftheexecutiveboard.Theexecutivesareresponsibletowards accomplishing the objectives and functions of the organisation. This includes the directors of news, finance and strategy. Furthermore, the management board follows the executives which play the role of appropriately solving any issue within the organisation. 5
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
OXFAM: Vision and Mission:Vision of Oxfam is to appropriately fulfil each and every need of people within the country and provide them opportunity to bring change in their lives. Size and Scope:Its size and scope is quite vast as the firm as almost 20 branches that are operating in more than 90 nations. In addition to this, the aims and objectives of the organisation have been quite effectively achieved by these branches across these nations. Organisational Structure:Oxfam operates within a council of individuals and each of these associations have trustees that are responsible towards governing activities, operations and functions of the organisation. TASK 2 P3. Relationship Between Different Organisational Functions In every organization there are various business functions depending upon their type of business. Every business functions are interdependent on each other so that smooth functioning of the business can be carried out easily. For the growth of the business inthe neck to neck competitive world there should be strong and transparent relation among the various departments (Laudon and Traver, 2016). Here, are some of the examples of business functions which are, sales, marketing. Information technology, finance, human resource, customer support service etc. Here, in this case the numerous business functions of Amazon are explained as follows: Marketing and sales department:In Amazon this two sections are interrelated with each other in the working premises. Marketing and sales department build strong connections so that sales sector gets a rough idea about their targeted customers through marketing. By carrying out marketingeffectivelyinthe cutthroatcompetitiveworld salesratiocanbe raised ata tremendous scale. Amazon keep eye on this two business functions so that set goals can be achieved easily in the cut throat competitive world. This sector impact the Amazon structure of the firm in apositive manner. Healthy relations among them helps to carry out firm structure activities effectively. Advantages: 1.Emerging needs of the customers can be achieved easily. 2.Set standards are accomplished in the intance competitive world (Silvestre, 2015). Disadvantages: 6
1.Loss of capital takes place when there is mismanagement among sales and marketing departments. 2.Chaos and conflict take place on every now and thendue to which employees turnout ratio is raised . Finance and Human resource department:It is very important to have faith among the departments in the working premises. In Amazon finance and human resource departments are inter-connected with each other so that business related activities can be carried out easily. The finance and human resource department are a part of business function which need to be performed effectively in the competitive market place. Amazon finance sector provides adequate amount of funds then only human resource activities can be carried out smoothly. Whereas, human resources provide a rough idea to the finance department about the necessary funds so that availablesources of funds can be investigated. By doing so insufficiency of monetary amount does not take place (Raziq and Maulabakhsh, 2015). The organization structure is affected by this departments in positive aspects. Having effective connections within this departments helps firm's structure to carry out all other act easily. Advantages: 1.Administration does not face lack of funds and human resource activities are performed accordingly. 2.Amazon is able to create tough competition for others in the competitive market place as they financially stable in nature. Disadvantages: 1.Imbalanceinfinanceandhumanresourcedepartmentsslowsdowntheoperation activities due to which production and profits decreases. 2.Due to miscommunication or unhealthy relation among the departments set goals are not achieved. 3.The level of conflict raises to a large extent which directly leads to unhealthy working environment is created (Business function, 2019). 7
Illustration1: Business functions Source: Business Functions, 2019 Information technology and finance departments:This two departments are inter-connected with each other as to conduct information technology activities funds are needs. So it is very important to build balanced relations with each other sections (Schaltegger and Burritt, 2017). Amazon keep on monitoring this two divisions on regular basis so that mismanagement does not occur. Information technology provides relevant information regarding the market scenario and accordingly monetary amount is accumulated. The organizational structure is hampered when irregularity take palace in this divisions. The profit gets reduced to a large scale as well as set objective are not achieved. Advantages: 1.Amazon is able to create tough competition for others in the neck to neck competition. 2.The success rate of growth and development of business uplifted. 3.Amazon is able to bit competitors as they are monetary strong. Disadvantages: 1.Imbalance in information technology and finance department bring huge loss to the firm as they are unable to access opportunities and threat prevailing in the market. 2.Desired goals are not meet on time and organizational structure working is hampered to a large extent. 8
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
TASK 3 P4. Identification of impacts of macro environment Pestel analysis is conducted by private(Amazon) and public (BBC) firm so that better market scenario can be understood. Organization carry out this external forces so that tactics can be framed accordingly. Here the Pestel analysis of Amazon are explained as follows: Political factor:This factor is related to the political stability within the country and its impact on the organisation. Tax policy, foreign trade policy, funding grants and initiatives etc. comes under political factor (Schaltegger and Wagner,2017). Within the United Kingdom, there has been an ongoing instability in relation to political terms due to the likely events of Brexit. In addition to this, it has caused a major issue for the organisation in dealing its products within EU regulations. Hence this factor has a negative impact on the organisation. Economical factor:This factor undertakes the economic performance of the nation. With respect to the United Kingdom and Amazon, the country is witnessing a massive downfall in terms of economy. In addition, while the rate of pound has decreased substantially, there is a heavy inflation within the country along with high Interest rates. These are economical forces which need to considered before expanding the online business. However, in context of the organisation, this factor has a negative impact over the company as the firm is forced to provide its products on a lower rate to keep its sales consistent. Social factor:Society taboos, traditions etc. come under social forces. Currently, within the United Kingdom, the online trend has been positively driving amongst the customers. This is a positive factor for the company and impose effective and contributing impacts on its operations to appropriately and essentially provide its products online. Technological factor:This factor is inclusive of appropriate and effective technological advancements within the industry and its influence on the operations and functions of the organisation. To meet the emerging needs to the client modern tools need to be adopted by Amazon, such as Artificial Intelligence and Automation. By doing so competitive advantages can be attained against competitors. Using old plant and machinery act as a drawback as it does not aid in achieving goals. Hence, a positive impact could very well be witnessed upon Amazon. Environmental factor:pH level of water, climate etc. comes under environmental factor. Within the UK, the government and communities have been highly inclined towards the 9
environmental protection and lower carbon footprint emission. Amazon, in orderto survive for longer time period come up with unique strategies so that environment does not get depleted much. However, the company is already on the track through its sustainable practices by indulging into smart delivery practices. Hence, this factor has also a positive impact on the organisation. Legal factor:Consumer law, copyright law etc. are examples of legal forces. There are several legislation such as Equality Act, 2010 and Customer Protection Act, 1987, which are essential to appropriately and effectively complied by the company to ensure government support. Moreover, to retain skilled and capable staff in the premises it is important to follow legal factor. By doing so assurance can be given to the Amazon staff that they are not exploited. Hence, this factor has a positive impact on the organisation. 10
Illustration2: PESTEL Analysis Source: PESTEL Analysis, 2018 TASK 4 P5. Internal and External Analysis SWOT ANALYSIS OF AMAZON STRENGTHS As a global e- commerce giant, Amazon has the strong brand image in the market. Amazon Marketplace, Amazon Web Services and Amazon Prime are 3 key businesses of WEAKNESSES ï‚·Tax avoidance in UK and US has sparked negative publicity for Amazon. ï‚·Online retail businesses have quite common in digital world. Thus, imitating 11
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Amazon which generate massive profits. Amazon is the largest online retailer in the world. Amazon has an outclass logistics and distribution network to deliver its products around the globe. the Amazon's business model is quite easy. For Example : Netflix , eBay. ï‚·Building popularity for new product categories is currently a slow process by Amazon. ï‚·Amazon has not been able to compete with the leading players in terms of innovation (Wehrmeyer, 2017). OPPORTUNITIES ï‚·Amazon may invest in physical stores outside US to increase their market share. ï‚·Amazon can do backward integration by bringing in house products in distinct product categories to differentiate its offerings. ï‚·Diversifying into new technological areas can help Amazon to achieve higher growth (SWOT analysis, 2017). THREATS ï‚·The demand of highly profitable products is seasonal in nature which impacts the profitability of the business in short to medium term. ï‚·Aggressive competition with big retail firms like Walmart , Ebay can give Amazon a tough time in future. ï‚·Government regulation can also threaten the business proceedings of Amazon. For example: Amazon cannot ship to North Korea , Cuba , and Iran. 12
Illustration3: SWOT Analysis Source: Jodie Shaw, 2017 How SWOT Analysis affects the HR Manager -HR Manager can use SWOT Analysis as a strategic plan. Strengths and weaknesses may be attributable to individual team members, which helps to identify top performers and also those who need training.Managers can add team members strengths and weaknesses to individual performance appraisals with specific goals and plans. Opportunities can become budget and staffing items. They can take greatest possible advantage of available opportunities.They can find ways of how they can grab those opportunities in near future and tries to convert them into strengths.SWOT analysis canalso helped the managers to determine how to minimise or eliminate threats. P6. Interrelation of Strengths and Weaknesses with External Macro Factors Political factor:SWOT analysis is interrelated with external forces. Firm uses their strengths to over the political conditions in order to raise the business in the market (Sadgrove, 2016). Economical factor:This is a part of external forces prevailing in the market. There is a strong interrelation of SWOT analysis with external forces. This is the weak point of the company for this policies are framed to overcome it in the working premises. 13
Social factor:This external factors build strong relation with SWOT analysis so that emotions of society people does not get hamper. It act as a opportunities in the open market scenario. For this research is conducted to convert loop holes as their opportunities so that tough competition can be created for others. Technological factor:Here, in this case, SWOT analysis build interrelation with external forces so that emerging needs of the customers can be full-filled. And future threat can be evaluated and strategies can be formulated respectively. Critical reflection of key findings as well as examine impact the decision making process. According to me Pestel analysis is conducted by the firm in order to better understand the current market trends. The critical reflection of above key findings is carried effectively and efficiently in the market place (Andersson and Holm, 2015). By examining political, economical, social, technological factors etc. consumers needs and preferences can be examined and market value is raised in the eyes of the customers. If firm does not conduct pestel before entering into the market there is less chances of success. Also set objectives are not meet on time. I think that as much pestel is important same way Swot is necessary to conduct. By this strength and weaknesses of thefirm isfocusedas well as opportunities andthreat are highlighted so that tactics can be framed accordingly. By this huge market share is captured and more consumer base is raised. But if Swot is not performed business can not sustain for longer time period and will not be able to gain competitive advantages against rivalry (Bocken and Short, 2015). CONCLUSION From the above it can be summarized that Pestle analysis is carried out in an organization so that strategies can be framed accordingly. By studying this competitive advantages can be attained against rivalry. However, SWOT analysis is effectively performed so that firm's strength and weaknesses can be examined properly and also opportunities and threats prevailing in the open market can be measured. By doing business work effectively and efficiently to survive in the market for longer time period. The legal structure, size, scope etc. are focused more in order to realistic goals can be formulated. Along with this it also throw-light on strengths and weaknesses of the firm and their interrelations so that chances of error can be reduced and improvements can be done respectively. The stakeholders, scope, vision, mission, set standards 14
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
etc.ofPrivate,publicandvoluntaryorganizationareindividuallystudiedsothatmore information can be gathered about them at a large scale. 15
REFERENCES Books and Journals Bendell,J.,2017.Termsforendearment:Business,NGOsandsustainabledevelopment. Routledge. Charter, M., 2017.Greener marketing: A responsible approach to business. Routledge. Ciambrone, D. F., 2018.Environmental life cycle analysis. CRC Press. Crowther, D., 2018.A Social Critique of Corporate Reporting: A Semiotic Analysis of Corporate Financial and Environmental Reporting: A Semiotic Analysis of Corporate Financial and Environmental Reporting. Routledge. Falkner, R., 2017.Business power and conflict in international environmental politics. Springer. Hillary,R.,2017.Smallandmedium-sizedenterprisesandtheenvironment:business imperatives. Routledge. Kolk,A., 2016. Thesocialresponsibilityof internationalbusiness: Fromethicsandthe environment to CSR and sustainable development.Journal of World Business.51(1). pp.23-34. Laudon, K. C. and Traver, C. G., 2016.E-commerce: business, technology, society. Raziq,A.andMaulabakhsh,R.,2015.Impactofworkingenvironmentonjob satisfaction.Procedia Economics and Finance.23.pp.717-725. Schaltegger, S. and Burritt, R., 2017.Contemporary environmental accounting: issues, concepts and practice. Routledge. Schaltegger, S. and Wagner, M., 2017.Managing the business case for sustainability: The integration of social, environmental and economic performance. Routledge. Schaltegger, S., Burritt, R. and Petersen, H., 2017.An introduction to corporate environmental management: Striving for sustainability. Routledge. Wehrmeyer, W., 2017.Greening people: Human resources and environmental management. Routledge. Welford, R., 2016.Corporate environmental management 1: systems and strategies. Routledge. Sadgrove, K., 2016.The complete guide to business risk management. Routledge. Andersson, U., Forsgren, M. and Holm, U., 2015. Balancing subsidiary influence in the federative MNC: A business network view. InKnowledge, Networks and Power(pp. 393-420). Palgrave Macmillan, London. Bocken, N. M. P., Rana, P. and Short, S. W., 2015. Value mapping for sustainable business thinking.Journal of Industrial and Production Engineering.32(1). pp.67-81. Hansen, A., 2018.Environment, media and communication. Routledge. Silvestre,B.S.,2015.Sustainablesupplychainmanagementinemergingeconomies: Environmentalturbulence,institutionalvoidsandsustainability trajectories.International Journal of Production Economics.167.pp.156-169. Wallace, D., 2017.Environmental policy and industrial innovation: Strategies in Europe, the USA and Japan. Routledge. Welford, R., 2016.Corporate environmental management 3: Towards sustainable development. Routledge. Online: Business function. 2019.[Online]. Available Through: <https://cynoteck.com/why-powerapps- might-be-the-best-thing-for-your-business-apps//> 16
PESTELanalysis.2018.[Online].AvailableThrough: <https://www.professionalacademy.com/blogs-and-advice/marketing-theories//> SWOT analysis. 2017.[Online]. Available Through: <https://medium.com/thrive-global/how- to-complete-a-personal-swot-analysis-2f8769aebd5e//> 17