This document provides an overview of different types of organisations including private, public, and voluntary. It explains their purposes and legal structures. It also discusses the relationship between organisational functions and objectives, and the positive and negative impacts of the macro environment on business operations.
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Business and Business Environment
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Contents INTRODUCTION.................................................................................................................................3 TASK 1.................................................................................................................................................3 P1: Different types and purpose of organisations.............................................................................3 P2: Size and scope of a range of different type of organisations.......................................................5 TASK 2.................................................................................................................................................8 P3 Relationship between different organisational functions and their link to organisational objectives and structure....................................................................................................................8 TASK 3.................................................................................................................................................9 P4: Positive and negative impacts the macro environment has on business operations...................9 TASK 4...............................................................................................................................................11 P5 Internal and external analysis of organisations in order to identify strength and weakness......11 P6 Strengths and weakness interrelated with external macro factors for the company.................12 CONCLUSION...................................................................................................................................13 REFERENCES....................................................................................................................................14
INTRODUCTION Business Environment comprises of internal as well as external factors which can influences organisational functions either in negative or positive way. Business environment consisting of several influencing factors such as suppliers, investors, owner and competitions, upgradationofexistingtechnology,governmentlawsandregulationsetc.Forthis, management play an important role in making suitable plans and profitable decisions for an organisation(Business Environment,2017).The main purpose of present assignment report is to identify the influence of business environment on business functions of an organisation. The present report is based on three organisation including private, public and voluntary which are Sainsbury Plc, National Audit office and Cancer Research UK respectively. The whole assignment report is based on Sainsbury Plc which becomes second largest chain of supermarkets in UK.The project includes size, scope and purpose of different kinds of organisation along with the linkage of various departments to achievement of organisational goals. In addition with this, the project also covers PESTLE, SWOT analysis and their interconnection that can affect the decision making process. TASK 1 P1: Different types and purpose of organisations Business environment implies the majority of the outer and inward factors that affect on organizational activities, for example, clients, workers, rules and regulations, import- export policy etc. There are significant three kinds of organisations, for example, public, private and voluntary. All has their own purposes and intention to accomplish better results inside pre-decided time frame. Every type of organisations along with their purposes is briefly explained as under: Private company:It is valuable part of an economy of nation due to contributing maximum output in form of generating large employment opportunities, paying huge taxes etc. It is owned by two or more person with the purpose of making huge profits. Sainsbury is a private company which is engaged in retailing sector in UK. Purpose:The main purpose behind Sainsbury Plc is to give standard quality of products at a reasonable cost. Organization believes in being reasonable for their environment and providers(Bovee, Thill and Raina, 2016). Legal structure:
•Partnership:When at least two individual arrived in consent to share a common goal for accomplishing objectives. Such structure enables them to share both the benefit and misfortune and even took decision together. •Sole proprietorship:It is the least difficult type of business. These are possessed and controlled by a single person who is considered in charge of the considerable number of benefits and losses of the firm. •Limited organization:This hybrid structure directs partners and proprietors to restrain their liabilities. It implies that the individuals are not in charge of any losses or obligations until the point that their illegal act can't be demonstrated(Dahan and et. al., 2010). •Multinational organization:MNC organizations are worked everywhere scale in excess of one nation in which their central office is situated in a particular nation and its branches works in different nations. •Global organization:In this, an organization advertises their products in different nations under a solitary brand name. Head office is in charge of making policies and strategy for entire organisation. •Transnational organization:This sort of organization additionally works in excess of one nation yet without a settled headquarters. Legal structure of Sainsbury is limited company. Public organisation:These associations give products and services to the general public without stressing much on benefits. These kinds of associations are directed and controlled by the government. Shares of such associations can be allotted directly to the general public. In this, National Audit Office is perfect example of public sector organisation which is responsible to conduct audit of central government departments. Purpose of Public organisation The main purpose of public sector is providing public services which including government services and public products such as police, military, public education, health care etc. The purpose of National Audit Office is to give advices to government authorities through producing reports(Erasmus, Strydom and Rudansky-Kloppers, 2016). Legal structure:
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•Local government:Local government directs and controls a little part of zone, for example, a city or town. •State government:This controls and forces laws and directions to state. It is in charge of giving answer for the issues and prerequisites of a state. •Central government:This government controls and directs the entire economy or nation. It is in charge of keeping up peace in a nation. National Audit office is a part of central government due to performing duties allotted by the government. Voluntary organisation:It is kind of organisation which is established for performing social activities due to which it is also known as non-governmental organisation. In this, Cancer Research UK is an example of such type of association which is engaged in conducting research into diagnosis, prevention and treatment of diseases. Purpose: The main purpose of voluntary sector is to maintain healthy lifestyle of people through offering health related services at free of cost. Legal structure: Trust:It doesn’t require a membership due to having charitable in nature. It is established by group of people with the common objective i.e. social welfare.Association:It is also another type of association which is formed with the group of persons having common objectives other than profit. Cancer research UK is comes under charitable organisation. The organisational can expand its business functions at global market through proper evaluating the global business environment along with the motive and legal structure of different nations. Here, the management play an important role in performing all such roles and responsibilities related with growth of an organisation. P2: Size and scope of a range of different type of organisations As mentioned above, there are different kinds of organisations which are explained as under along with their size and scope:
Scope:Company provides its products and services in various places, for example, UK and numerous other preeminent Audits. Mission and Vision:Vision and mission of the organization is to encourage good governance by bringing transparency and accountability towards society. Objective:Objective of organization is applying and makes their insight and gives better performance. Organisational and legal structure:Legal structure of National Audit Office is charitable association and Organizational structure of company is non-profit. Stakeholders:In the association, there are some principle partner, for example, volunteers, employees and government. Voluntary Organization: Background of company:Cancer Research UK is a part of voluntary organisation which came into existence in 4 February 2002. It is a type of charitable association in London, United Kingdom. Fundamental focal point of the organization is to bring out new ways of eradicating cancer diseases through conducting research(Nishitani and et. al., 2012) Products and services:Company offers better treatment to cancer patients at free of cost and make their life much better. Size:Organization has around 40,000 volunteers and 3,960 specialists. Scope:Company give diverse services in different nations, for example, England, UK and so forth. Mission and Vision:Mission of the organization is to convey forward the day when whole cancers are cured. Vision of the association is to give greatest level of treatment for cancer patients. Objective:One of the fundamental goals of the organization is to diminishing the cases of deaths due to cancer. Organisational and legal structure:Legal structure of the organization is central government. Stakeholders:Main partner’s stakeholders are Clients and political parties.
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TASK 2 P3 Relationship between different organisational functions and their link to organisational objectives and structure In the Sainsbury, there are distinctive divisions are exist in which some departments and their interrelationship is resolved as under: Humanresourcewithmarketingdepartment:HRdepartmentperformscrucial functions such as performance appraisal, training and learning programs, recruitment and selection, rewards and compensation etc. In Sainsbury, HR and marketing department are interrelated with each other to perform their functions. For example, HR department is responsible to hire skilled and qualified employees with the support of marketing department in form of advertising job vacancies in company to influence skilled applicants. This will help organisation in achieving its objectives due to gaining maximum efforts by skilled workforce(Pikka, Iskanius and Page, 2011) Marketing with production department:Marketing department has performed several functions such as analysing the needs and requirements of market so as to fulfil them within shorter period of time. Sainsbury focuses on enhancing brand image in market. For this, it requires support from production team to produce adequate amount of demanded products at minimum cost so that products and services can be offered at reasonable prices. Marketing department also promoted the features and benefits of produced products which can easily attracts large number of customers which in results increasing organisational profits. Organisational structure consists of an activity related with supervision, timing and shareallotmentinordertoexecutebusinesspurpose,Sainsburyshouldbringmore transparency and flexibility in their business process so as to achieve competitive advantage. It follows flat organisational structure which is explained as under: Flat hierarchical structure:Sainsbury pursues flat organisational structure in their business which is otherwise called horizontal structure. Such sort of structure shows that there is no level among representatives and directors because of which the workers and best specialists can specifically speak with one another without confronting any aggravations. It conveys inspiration among workers to share their new and inventive thoughts directly to the best level administration which in results brings maximum advantages to company(Shigang, 2010).
TASK 3 P4: Positive and negative impacts the macro environment has on business operations PESTLE is conducted by organisations to analyse external factors which can influence their business functions both in negative and positive manner. It includes several influencing factors which are given as under along with their positive and negative impact: Political factor:Sainsbury works in different nations. In this way, the Company can confront different political issues because of various guidelines and directions of these nations.Sainsburymanagementshouldcentreonvariouspoliticalelementsliketax assessment approach, import-export policies, amendments in government etc. •Positive effect:Present duty and import-export policies of UK and different nations are agreeable to organization which will give chances to grow its business in these countries. This will reinforce the situation of Sainsbury in worldwide markets(Werther Jr and Chandler, 2010) •Negative effect:Changes in these duty and import-export policy will negatively influence the organization as it will influence the sales because of lessening in purchasing power of focused market. Economical factors:Sainsbury works in different nations and these nations has diverse level of economic growth. Thus, management at Sainsbury needs to frame effective policies according to the inflation and deflation rates, cash generation, level of pay and so forth. •Positive effect:Sainsbury need to focus on capturing different income buyers through selling products using online platform. It helps in identifying the country where the demand of products are high. •Negative effect:To attract low and middle income group, Sainsbury offers discounted policy, cash back etc. which reduces their profitability and sales. Social factors:It includes distinctive culture and standards of community that affect business of Sainsbury. In this business are more relying on preferences and buying behaviour of targeted customers.
Positive-Sainsbury ought to create quality products or services in their shops which is gainful and fundamental for their business activities. Negative-Sainsbury furnish quality product to their customers with sensible cost. But all over reliance on individual brand give negative impact on business. Since their rivals are giving distinctive range in products offering for expanding client base (Yoon, 2012). Technological:It is another factor that is primarily associate with innovation headway in anundertaking.ItsupportstoincreaseinprofitabilityofSainsburyandimprovea communication channel in a venture. It is more essential for association to introduce innovation in their manufacturing process so as to produce distinctive products than their rivals. •Positive-Sainsbury need to pursue web based marketing with an objective of pulling in clients and taking competitve advantages. •Negative-There are diverse numbers of rivals who are applying new innovation which is affecting the brand picture of Sainsbury in the market. Environmental factors:It includes the social obligation and ethical responsibility of an organisation in order to utilise limited resources in an optimum manner. Sainsbury needs to consistence with the environmental laws and additionally pursue eco-friendly equipments in the production process that cannot affect the environment(Hamilton and Webster, 2015). •Positive-Sainsbury ought to adopt eco-friendly raw material through this they can without much of a stretch get consumer loyalty and dependability. •Negative-Under substantial rain, delay is occurring in transportation. Through this, customers won't gain ordered products on time to time and turn into a negative and direct impact on Sainsbury. Legal factors:There are various laws and regulation framed by government of different nations which should be followed by Sainsbury for smooth working in such nations. Management is held liable to pursue such lawful prerequisites to take care of the demand and necessities of clients. •Positive effect:Sainsbury pursues the rules given by government in quality standard and pricing of products.
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•Negativeeffect:Failureinimplementationoflawswhicharerequestedby government will result in lawful punishments and fine. These can adversely impact on the brand image of Tesco regarding quality and standard of items. TASK 4 P5 Internal and external analysis of organisations in order to identify strength and weakness SWOT analysis is conducted to analyse internal influencing factors which can affect the business functions internally(SWOT analysis of Sainsbury’s Plc, 2017)It assists management of Sainsbury to make effective decisions for the betterment of an organisation after identifying strengths, weaknesses, opportunities and threats. It is further discussed as under: StrengthsWeaknesses Sainsbury has a huge brand esteem whichisofferingdiverseproducts andserviceswithdifferent prerequisites of customers. Companyworksroughly600 supermarket and more than 800 ease storescrosswiseoverUnited Kingdom. Business has attained wide range of productswhichassistthemin capturing large market share Bringing innovation in their business processincreasesthevalueof company in competitive market. Over reliance on cutting edge brands subterranean insect out quality stock giveapositiveeffectontheir customers. Sainsburyhaveunskilledand unknowledgeablestaffmembersso that,businesscan-notsatisfy necessities to their clients. Sainsbury haspoor incapablestore network due to which the company can't convey quality item or services at whole areas. Company isn't having any significant bearingprogressedandremarkable technologies which could safeguard their time and also cash. OpportunitiesThreats Companyhasnetworkinvarious countries,whichincreasestheir Rulesandenactmentofvarious countriesineverywherethroughout
expansion everywhere throughout the globe. ď‚·Sainsbury requires to build consumer loyalty'slevelsothat,genuine customers could easily attract towards business. ď‚·Withthehelpofbetterbrand acknowledgmentorganizationcould enterininventivemarketportions which will bring them one step ahead in the expansion. ď‚·Businesshasopportunityfor extendingbusinessinAfrica,Asia nation and so forth due to having their products more in demand. theglobemayaffectonbusiness functions of Sainsbury. As this would diminish the operational procedure. ď‚·Businesshasanimmensebrand picture and generosity so there might be threat in view of their over reliance on out of quality products. ď‚·Maximising globalization, exhibits a major challenge as well as chances to Sainsbury's. P6 Strengths and weakness interrelated with external macro factors for the company In this part of project, PEST analysis has been conducted and interrelated with the strength as well as weaknesses of an organization. It is further understood as under: Political factor:It includes fluctuations in political system which can either support organisation in expansion or can restrict them to reach their business to another countries. ď‚·Strength:Sainsbury follows all rules and regulations framed by the government as well as also paying tax amount on time which brings positive impact on their brand image. ď‚·Weakness:Sometimes payment in taxes is delayed due to which governmental authorities imposes pressure which causes weaknesses for Sainsbury. Economical factor:It includes economical fluctuations or economic stability which decided the growth of an organisation. ď‚·Strength:Sainsbury is mainly operated in UK whose economy is developed due to which buying power of people also goes high. It increases their spending income for buying retail products.
ď‚·Weakness:Sometimes inflation situation arises in some nation where Sainsbury is operated due to which the price of products are increased. It negatively impact on the buying behaviour of customers which in results decreasing its sales and revenue. Social factors:It includes lifestyle and behaviour of customers which can either increase sales of company or vice versa. ď‚·Strength:Sainsbury offers quality products which increases health and satisfaction level of customers. ď‚·Weakness:Not investing money in recruiting skilled people brings disadvantages to company. Technological factors:It includes decisions of organisation made regarding adoption of advanced technology which can affect their profitability as well as working behaviour. ď‚·Strength:Providing cash back offers on online selling increases the customer base of company. ď‚·Weakness:Offering cashback or discount on products makes wrong perception towards people about their quality of products(Relationships between PEST and SWOT, 2017). CONCLUSION It has been concluded from the above project report that it is essential for all types of organisation to understand the impact of influencing factors of business environment so as to protect the existence of their business in market. For this, it is required to conduct PEESTLE and SWOT analysis to analyse internal as well as external factors which assist management to make an effective decisions for the betterment of an organisation. It also required to understand the interrelation of various departments towards achievement of organisational goals.
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