Ask a question from expert

Ask now

Positive and negative impact of micro environment on business operation and support

19 Pages6639 Words395 Views
   

Added on  2021-02-19

Positive and negative impact of micro environment on business operation and support

   Added on 2021-02-19

BookmarkShareRelated Documents
BUSINESS AND BUSINESSENVIRONMENT
Positive and negative impact of micro environment on business operation and support_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Types and purpose of organisation and legal structure with the scope and size.........................1TASK 2............................................................................................................................................4Relation between different organisation function ......................................................................4TASK 3............................................................................................................................................6Positive and negative impact of micro environment on business operation and support...........6TASK 4............................................................................................................................................8Internal and external analysis of specific organisation to identify the strength and weakness...8CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................11
Positive and negative impact of micro environment on business operation and support_2
INTRODUCTIONBusiness Environment is the combination of internal and external component such asmanagement, customer needs, supply and demand, employees, client, owners, social trends,economic changes etc. These factors affect the working of the organization directly or indirectly.Business environment helps in analysing business opportunities, contribute in planning, findingneedful resources, improves the performance, growth and development and profitability of theorganization (Evans and et.al, 2017). Analysing business environment helps an organization inknowing the possible opportunities in the surrounding that a company can grab to grow furtherand threats that can affect the business. So after analysing the possibilities the company can workon them and convert them into positive outcomes. Merrill Lynch is a US based investing wealthmanagement company under the control of Bank of America. The company was founded in 1914and is headquartered in New York City and hold the entire 34 stories building. Merrill Lynch islisted on New York Stock Exchange (Bank of America Merrill Lynch, 2019). The study focuseson various types and purposes of organization along with the size and scope of the business.Further it includes organization function and how they connect to the goals and structure ofcompany. Pros and cons of macro environment (pestle analysis)on business operations. SWOTanalysis of the company is done and how the strength ans weakness are related to the externalmacro factors.TASK 1Types and purpose of organisation and legal structure with the scope and sizeIntroductionOrganization is known as the body consisting of multiple people, like a group and workfor a particular purpose. Organisation made to achieve the goal, in this each and every personhave their assigned work and it will be done by the responsibilities and authority which is givenfor the work. Public, private, voluntary all kind of organisations have different purpose and legalstructure. All these work in different sector: primary, secondary or tertiary (Hair Jr and et.al ,2015).Sole traderThis is the type of organisation which is run by single owner. Individual start a businessto get reasonable amount of profit. Solo trader organisation is known as the organisation which isrun by the single person. This type of organization works to make profit and it has only a single1
Positive and negative impact of micro environment on business operation and support_3
owner which mean the owner take whole profit. In this type of organisation, they have only oneor two employeesAdvantage of being sole trader is that ownership remain in the hand of owner only, thereis no need to share ownership with any third person. But it also has disadvantage as ownerbecome legally liable for all debts that means if firm fails to generate profit then owner will haveto repay all liabilities from own savings (Kljucnikov and et.al, 2016).Soletrader shoes is the great example of sole trader it exists in secondary sector. Partnership companiesThis is the type of firm which is run by two or more partners. Both partners areresponsible for liability of company. partnership organisation is known as the two or moreindividuals share their management for the work and run the organisation also they divide theprofit. The main purpose of the of partisanship organisation is work with the any individuals anddivide the responsibility of the organisation. Profit is shared between these partners and they getprofit as per their invested amount. Advantage of partnership company is that risk is managed byboth partners hence it doesn’t create any burden on individual. Disadvantage of partnershipcompany is that it increases chances of conflicts between both partners. John Lewis partnership is the partnership firm, it exists in secondary sector (Lee and et.al,2015). Limited companiesPrivate limited organisation are known as the organisation which run by the particularperson or the team. Legal Structure: The company is listed on US Stock Exchange. Advantageof this firm is that their liability is limited. But disadvantage of private companies is that theyhave to arrange capital by own as they don’t get support from government in term of finance.The main motive of the private organisation to make profit with giving the good service to thepeople. Purpose: It is financial service and believe on the providing the best service. Thepurpose of the company is to invest in the client's business or help the client to start a newbusiness(Erasmus and et.al, 2016).For example we take Merrill lynch investment which is a well known private sector organisation.Merrill lynch investment: it is a US based investment company and its headquarter inthe new york city USA. Merrill lynch provide financial service all over the World and in this2
Positive and negative impact of micro environment on business operation and support_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Business and business environment INTRODUCTION 3 LO 1 3 Different types of organisation
|15
|4124
|434

Business and Business Environment - Size and Scope
|11
|2515
|35

Business and Business Environment INTRODUCTION 1 Task 11 P1 Different Types of Organisations
|17
|4902
|130

Business Environment in Merrill Lynch Assignment
|9
|2098
|107

Business and Business Environment - Assignment
|18
|5584
|93

Business Environment INTRODUCTION 1 Task 11 P1 Different types of business organization 1 P2 different types of business organization 3 Structure 4 CONCLUSION 7 REFERENCE7
|10
|2456
|367