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TNA67 : Pearson BTEC HND in Business

   

Added on  2020-04-15

22 Pages4570 Words48 Views
Running head: BUSINESS AND BUSINESS ENVIRONMENTBusiness and Business EnvironmentStudent’s name: Name of the University: Author’s note:

1BUSINESS AND BUSINESS ENVIRONMENTTable of Contents Introduction........................................................................................................................2P1 Explaining various types and objectives of organisations; public, private andvoluntary sectors and legal structures...............................................................................2P2 Explaining the scope and size of a range of various types of organisations...............5P3 Explaining the relationship between different organisational functions and methodsto link the organisational objectives and structure.............................................................9P4 Identifying the positive and negative influences the macro environment has onbusiness operations.........................................................................................................12P5 Conducting internal and external analysis of organisation to identify strengths andweaknesses.....................................................................................................................15P6 Explaining how strengths and weaknesses interrelate with external macro factors.16Conclusion.......................................................................................................................17Reference List..................................................................................................................18

2BUSINESS AND BUSINESS ENVIRONMENTIntroductionThe business environment of an organisation is the sum total of external andinternal factors that can impact the business as a whole. There are different types oforganisations that exist in the industry and they have various purposes and legalstructures (Anandarajan et al. 2012). The aim of the study is to investigate threedifferent types of organisations; size and scope to highlight distinguish between them. Inthe first part of the study, an overview of different types of organisations have beengiven and in the following section, three different organisations have been chosen thatbelong to three different types. In this study, Apple Inc. has been chosen as a public organisation, Virgin Atlantichas been chosen for the private organisation and British Red Cross has been chosenfor a voluntary organisation. In this study, various interrelated functions of Apple Inchave been given. After that, external and internal environment analysis has been givenbased on the Apple Inc. In the final section, internal strengths and weaknesses of AppleInc have been linked with external macro factors. P1 Explaining various types and objectives of organisations; public, private andvoluntary sectors and legal structuresPublic organisationsThe public company always issue securities through initial public offering (IPO)and it must be traded on one stock exchange. Public companies can have an over-the-counter market and this type of company has shares to float to the public (Bryman and

3BUSINESS AND BUSINESS ENVIRONMENTBell 2015). The public company allows the market to understand the values of the entirefirm, most importantly, most of the public companies were started by private companiesand they selected the public to meet the regulatory requirements.Purposes: The main purposes of Public companies to sell the shares to thepublic through the stock exchange. The liability is limited to the public companies andindividuals are inspired to invest capital in these public companies. The purpose of thepublic companies to enter the stock market, access capital, the value of shares, provideextra financial status, permission to advertise for the sale of share an opportunity toaccess easily for acquisition (Caroll and Buchholtz 2014). Legal structures: In order to be a public company, the organisation must haveat least 7 members and there is no upper limit. There is no limit in transferability ofshare for public companies and these types of organisations must have three directors.Directors of public firms must sign to acquire qualification share (Cheshire et al. 2014).Public companies must keep minimum capital of £ 50,000. Public companies cannotstart its business unless a Certificate of the commencement of business.Private organisationsPrivate companies are owned by the individuals and they are not part of thegovernment. Purpose of the private companies is to make a profit and increase themarket share (Craig and Campbell 2012). In addition, the private companies wantgrowth and maximise the sales. There are various types of private companies:Sole trader: Sole trader organisation is run by one person and owner iscompletely responsible for the business. The main source of finance for the sole trader

4BUSINESS AND BUSINESS ENVIRONMENTis the bank loans and personal saving. A sole trader is the most common in the tertiarysector. The Government can issue a trading license for certain goods and VATregistration over a certain amount (Crame and Matten 2016). Partnership: Partnership type of businesses has two or more owners. Theordinary partnership has unlimited liability for all partners and the Limited partnershiphas unlimited liability for at least one partners. In addition, partnership business hasminimum 2 and maximum 20. The businesses have shares in the capital, profit andlosses and disputes mostly settle by the majority. LimitedCompany: Limited Companies have separate legal identities for ownersand they incorporate a business in registered companies. Shareholders can elect thedirectors.Voluntary organisationsVoluntary groups are not owned by any individual; however, someone will beresponsible for ensuring that it sets targets and budgets. Voluntary organisations run byunpaid management and they are mainly not-for-profit organisations. Purpose: Purpose of voluntary organisations in most instances tries to helpparticular types of people. In order to survive in the market, voluntary organisationsmust go at least break-even point through fundraising and grants through donations.Legal structure: Voluntary organisations do charity and it is a status, notstructure. Voluntary organisations have tax advantages and it may follow the regulationdisadvantages. The legal structure of the voluntary organisations depend on four major

5BUSINESS AND BUSINESS ENVIRONMENTsegments, trust, incorporated association, a company limited by guarantee andcharitable incorporated organisation (Caroll and Buchholtz 2014). Liability changes forvoluntary organisations and it acts as separate legal personality, property and riskyactivities. P2 Explaining the scope and size of a range of various types of organisationsApple Inc.Apple Inc. is a public company and it is in computer software, hardware and digitalindustry. Size and Scope: Apple Inc was founded in the year 1976 and the founder of the organisation wasSteve Jobs. Headquarter of the Apple Inc is in California. Apple Inc is considered asone of the largest sellers of mobile phones and digital products. This company servesall over the world and it has more than 500 registered retail stores. In addition, it sellsover online and other retail stores. In the Apple Inc., there are more than 123,000employees are working and they always try to innovate the products in the digitalmarket. The operating income of the company was US$ 1.34 billion and total asset ofthe company was US$375 billion in 2016 (Apple.com 2017). In the global market, AppleInc is a renowned name and it mainly targets the niche customers. It has enough scopein the market as the products are innovative and meet the desires of the customers.Apple Inc has subsidiaries, FileMaker, Anobit, Beats Electronics and Braeburn Capital. Products

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