INTRODUCTION Business Environment aggregates of all forces, factors and institutions which are external to and beyond control of an individual business firm but which exercise a significant influence on the functioning and growth of enterprises. Additionally, it has direct impact over organization decision making which impact positively or negatively over firm’s productivity and profitability (Shenkar, Luo and Chi, 2014). Moreover, it enable establishment to identify or examine its strength and weakness in order to adopt challenges or threat that helps them to attain sustainable proficiency and growth. This report is based on Arcadia Group that is one of the leading retaining company established in the year of 2002. It deals into clothing, accessories, and shoes with more than 2500 outlets across UK. This report covers, different kinds of organization along with their legal structure, size, scope, purpose, interrelationship between various business function. Implication of PESTLE and SWOT analysis for analyzing internal and external macro environment. TASK 1 P1 An enterprise is a process of dividing work into convenient tasks or duties, of grouping such duties in the firm of posts of delegating authority to each position and of appointing qualified manpower to be responsible that the work is carried out as planned in order to accomplish common goal or objective. Along with this, every organization contains its own purpose and legal structure which enable them to monitor or govern its business operation and function for an attainment of high level of profitability in an appropriate manner. However, setting up legal structure is one of the first decision during establishing a company as it defines the way business is organized as well as allow them to determine legal obligation and can gain better positioning within competitive marketplace. There are different kinds of organization with its purpose and legal structure which are as follows: Private They are legally distinct entities with their own assets, profits and liabilities, along with this personal finances of any shareholders are protected by limited liability. Moreover, its shares are not offer to general public.Apart from this, its main motive behind establishment is to
maximize its profit as well as to earn profit in order to gain competitive advantage and also to survive within marketplace for a longer period of time. The few examples of private firm are designers,developers,retail,legalservices,accountingandmanymorewhichworkfor maximizing the profit with an optimum utilization of resources in an trenchant and expeditious way.For acquiring deeper understanding of this concept, Arcadia Group is considered as it one of the branded retailing company in UK which operate across the globe with a high and best quality of products and services. Purpose The core goal of Arcadia Group is to become the first and best choice of customer by rendering high quality of products and services in an affordable price. Legal Structure However, Arcadia some of the legal structure of Arcadia Group are as follows: Sole Proprietorship: It is regarded as simplest structure in which it consist an individual personality who is responsible for entire business operation and function as well as obliged to take all gain and loss by its own. Some of its advantage and disadvantage are as follows: StrengthWeakness One of its main advantage is that it can easily be formed by any person and the owner has complete authority to deal with the affairs of business. Itcontainunlimitedliabilitywhich bring several difficulties like in case of creditorsagainstbusinessexceeded, then the personal property of owner are taken to pay their debts. Partnership: Under this, business entity or ownership is divided among two parties who come together with mentality to share all risk, responsibilities, profit and loss equally in order to achieve organization common goal in an effective and efficient way (Prajogo, 2016). Some of its advantages and disadvantages are given below: ProsCros
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