INTRODUCTION Business environment is refers to thegroupof all institutions, individuals, customers’ needs and preferences, management, client’s suppliers, creation in technology, social trends, economic change etc. All these activities influence thefunction of the organisation and how it works directly or indirectly. These factors affect the business enterprise in external and internal way and they also affect the overall performance and longer survival of theenterprise. It is the factor that helps the manager of a company to understand the opportunities and threats present in the business enterprise. Further this report explains the various types ofstructureand its legal structure. It also explains the size and scope of the company. This project also explained the relationship between functions with business structure and how they impact on the functions, overall productivity of any organisation(Quinlan and et. al., 2019). TASK 1 P1 Different types and purposes of organisation and its legal structure Business environment is dynamic in nature that influences the operational objectives to achieve thegoal in the organisation. There aredifferent kindsof organisation in business environment which are as explained below. Private sector-It refers to that sector which is run by any individual person or profit owned companies which is not state controlled. This sector contains large market share of the nation economy which is known as capitalist-based societies. Dysonis one of the privately-owned leading company in UK, who manufactures household products like hand dryers, vacuum cleaner, heaters, lights etc. Purpose-Its purpose is to rigour- manufacture every Dyson technology model and earn more and more profits. Improves the shipping efficiency and reducing the waste of the energy. To make the offerings well known at global market and satisfy the market and customer’s needs(Aithal, 2016). Legal structure of private sector-Sole proprietors-It refers to that private sector business which are organised for to provide tax benefits,decrease liability,modify operational efficiencyto the sole owner or an individual. This is mostly the small business and simple to organise in the nation like UK. 1
Partnerships-It refers to that where responsibilities, profits and losses can be divided into two or more persons who hold any business according to the arrangement of partners. Here, every partner voluntary corporate their mutual interests. This includes individuals, businesses, schools, interest- based organisations. The main motive of partners is to complete the objective to earn higher revenues(Evans and et. al., 2017). Limited Corporations-It is also known as Joint stock companies where individuals work for common organisational structures that safeguards owners’ assets and expenses. Here, the business directors are notliablefor business debts. It is of two types i.e. public Ltd. Company or private Ltd. Company. Dyson come under the Limited corporations i.e. it is privately owned company that is run by a family to earn maximum revenue by supplying innovative home and office appliances. Public sector-It refers to that organisations which is controlled and owned by the government and exist to give services to their country citizens. They include healthcare, education, and social care, emergency services. Funding in this sector are raised by different methods like taxes, fees, monetary transfer from other levels of government( federal and state government). National Health Services is publicly established in UK that support healthcare in thecountry. It is political accountable for UK government(Prajogo, 2016). Purpose-The main purpose of public sector companies is to provide Products and services for the welfare of the society. They usually run by the state government and raised funds from taxes. Legal structure of public sector company- Local government-It is that type of government which includes boyh county and municipal governmentconstitution. It is an authority to identify and execute measures within a restricted area within the whole state. State Government-Itdefinesto that government of the nation that shares the political power with the national government. It contains some level of political monopolyor directly control the federal government. Central government-It refers to that government which control the overall nation and holds absolute supremacy. The central government have the power tocontrol all other government(Belás and et. al., 2015). 2
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National Health Services serves to Central Government. It takes all the decisions relating to the Organisation and social welfare, most importantly community welfare. Voluntary sector-It refers to that company whose main objective is towelfareand enrich society. It is basically work called non- profit organisation with little government interventions. Save the Children is one of the best NGO who work for improves children lives bysupply education, health care and economic opportunities. Purpose- Theprimary intentionis to create social welfare rather than profit earnings. Legal structure of voluntary sector- Trust-It refers tom that structure where trustee caries out the business activities on behalf of the Trust members. It is not a legal entity that may be an individual person or a company . Here, the trustee has the legal right for the debts of the trust and also, they use their capital to fulfil those debts. Unincorporated association-It is that business entity that is developed by an agreement between a group of people who come together for a social welfare rather to make more revenues(Demil and et. al., 2015). Difference between Private, public and Voluntary sectors- BasisPrivate sectorPublic sectorVoluntary sector MeaningItreferstothat companywhichis fullycontrolbythe private sector. Itdefinesthe organisationwhichis incontrolof governmenti.e.state, localorcentral government. Itreferstothat organisationwhich is done for social welfare withoutfocusonthe profit earnings. PurposeThe main purpose is to maximise its profits. Theobjectiveis welfare of society with little profits. Themainpurposeis thesocietywelfare withoutearningany profits. Legal structureItincludessole proprietorship, It involves Local, state andcentral Itincludestrustand unincorporated 3
partnership and limited company. government.structure. Supplyofgoodand services It supplies mixture of products offerings like medicines,financial products,IT,support services etc. Theysupplythose goodsandservices that faces the market failureandthe merchandisecannot provide.Itinvolves nationaldefence, sanitation, schools, fire protection etc. This sector fulfils the society welfare needs byproviding education,health services to the needy peoples. P2 Size and scope of different types of organisation The Size and scope of every types of organisation is different that are explained below. Difference between micro, small, medium and large enterprise- BasisMicro enterprise Small enterpriseMedium enterpriseLarge enterprise MeaningItrefersto thatventure thatsells product offering to a local area or market.It containsless than10 employees. Itreferstothat wherenumberof employeesare between 10 and 50. Itreferstothat wherenumberof employeesare between 50 and 250. 1.Itrefersto thatwhere numbersof employees areabove 250. Market shareThemarket shareinthis In this the share inThemedium enterprisefocuson The main aim is to capture more market 4
isaboutto nil. the market is low.marketshareless than large venture. share. sustainabilityItmajorly focusseson thesurvival ofthe business only. It extent is somewhat highinthisalso becausetheyare small size. They will also focus on the sustainability but less than micro and small enterprise. They do not focus on sustainability because they already capturethelarge market. Profitshare and growth Itcontains lowprofits anddoesn't focuson growth. It contains low profit but more than micro enterprise. Itcontainsprofits andgrowthlarger thansmalland micro. It majorly focus on the maximization of profits and growth. Private sector- Size and scope-The number of employees in Dyson is more than 12000 all over the world and generate 4.4 billion revenue. It contains over 1000 engineers internationally. It deals in multiple household appliances which covers a large market share(Bah and Fang, 2015).This shows it’s a large organization that contains 50% of market share in the UK. It sustain for the very long period of time.The major scope of the private sector company Dyson is that it expand their business in various other sectors that helps in earning more profits. Public sector- Size and Scope-National health company having approx 1.4 million employees all over the world. It annual budget is 134 billion. It provides various services like in- patient care, healthcare and dentistry.It covers the 9.6 % of the gross domestic products and survived many years to protect the needy people.Scope of this sector is very large to provide the helps in all over the world. Voluntary sector- 5
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Size and Scope- Save the children is a NGO that works for rights of children. It contains 1,73,000 individual supporters and which active for hundred years. It presents in around 120 countries all over the world. It covers a large market share in the UK and sustain for around 100 years (Save the Children,2020).voluntary sector scope is very large as they spread in all over the country with a maximum share. TASK 2 P3 Relationship between different organisation functions and link with its objectives and structure IncontextofDyson,thisreportexplainstheinterrelationshipbetweenvarious organisational function that are explained below(Newell and et. al., 2016). Marketing and finance-This is the important relationship for Dyson company where finance department provide the budget and funds to the marketing manager, so that they spend the money on promoting the products offerings efficiently without much wastage of monetary value. Here, the finance manager properly makes the budget for advertising and give to the marketing manager to promote their goods and services efficiently and earns more profitability. They both work for a profit maximisation. Where one tries to save money for future uncertainties andother spend more money to attract numerous customers and earns mo0re revenue(Berger and et. al., 2015).\ ProductionandResearch & Development department-In context of Dyson, the research & development department play an important role to find an innovative technology that is used to make products that a company offers to its customers for longer survival of the organisation. Here, these departments work a team to grow their business. R&D department give the proper and whole information to the production manager to make a product very innovatively and creatively that attracts numbers of customers and capture the large market share. Organisational structure of the company Organisational structure is refers to the activitiesincludes coordination, supervision and the task allocation which are directly towards the achieving the goal of the company. 6
Divisional structure-it refers to that structure where every division contains all the necessary information according to their work.In Dyson manager proceed the information as per the need of the departments this will create a effective communication in the company. Functional structure-It refers to the bureaucratic structure where the firm divides the work according to the specialisation(Shehu and Mahmood, 2015).in the respected company Dyson, manager divides the work as per the skillsof an individuals. It main objective is to achieve the task on a giving time. Illustration1: organisation structure of Dyson company Here, the Dyson company follows a divisional structure. Divisional structure consists of various activities around market, products, innovation and group of consumers. Because of this structure every functional department properly do their work and support in organisation growth and profitability. The communication can generally transfer within each department according to the 7
need of the information. This structure determines the activities that operates and done in the Dyson(Burton, Yamin and Young,2016).Here, the CEO of the company connect with president and commercial manager and give orders to them about their vision and mission and the manager tranfers this information to different department in the organisation as per the requirement which help in achieving the task on the giving time. The main objective to maintain this strategy is smooth flow of work with effective communication in the company. Organisation structure link with different functions of the organisation VariousfunctionsofDysonlikemarketing,finance,productionandresearchand development department they all are related to organisational structure of a company because without any linkage they cannot work properly their task and the outcomes are in negative way. In Dyson company, there is a divisional structure in which every functions can be divided according to their divisions. Dyson is a large company having number of departments under it so the organisation follow divisional structure. If the firm size is small in nature than the functional structure follow in the company that is based on functions only in this activities are devided according to the task it only be possible in small size firm. For large size firm divisional structure is the best. This function of management link to the objective of Dyson company objectives like if they want to increase their sales by 10% and profit by 20% than it is very important for the company to link thevariousfunctionaldepartments.Inthisdivisionalstructurehelpsinenhancingthe productivity of an employees it will helps in increasing the sales and profits of the business enterprise. TASK 3 P4 Positive and negative impact of macro environment on the business operations Macro- environment is consists of external environment which influence organisation decision making and also affect the overall performance and strategies. These factors include pestleanalysisthatinvolvespolitics,economic,socio-culture,technological,legaland environmental. In context of supermarkets, pestle analysis is the great factors toidentify the external opportunities and threats for the business. 8
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Political factor-This factor affects the business of supermarket in UK and other countries. This factor includes to what extent a government intervenes in the economy or the industry. It involves political stability, corruption, foreign trade policy, tax policy and trade restrictions. Positive-UK is politically stable and it is favourable to the technological aspects this will create the opportunity for supermarkets like ASDA to earn revenue in a good sense while using various advanced technology in making the products (How political, legal and social factors impact on Asda,2020). Negative-This factor negatively affects the ASDA sales as well as supply chain and the cost that was incurred in manufacturing the offerings in a way that because of many restrictions of government company cannot do international marketing.Environmental factor-This factor influences by the surrounding environment in which business operates.This factor includes weather, location, change in climate etc. As people who live in the society are very much aware of their environment. Because of global warming supermarketsproduce those offerings which reduce the wastage of resources and recycling it(Ramdani and et. al., 2018). Positive factor-It effect positively by using recycling schemes in the manufacturing process. It reduces wastage and help saving the environment. It provides products related to cleaning this will increase sales.In context of ASDA, manager use recycle schemes in making the products that will eliminate the wastage in the resources. It will increase the profit for the firm. Negative factor-It also affect negatively if the company cannot follow the rules of the environment this will create global warming, polluted air etc.In ASDA, if manager does not make a plan according to the environment than it will reduce the profits and harm the environment of the community.Socio-cultural factor-In the current trend environment people more focus on their needs andwantsandthenbuytheirproducts.Accordingtothis,supermarketshasan opportunity to create more new design products which attracts more people to buy that products. Positive-in this ASDA use new technology to attract new and more customers and cover wide area. The quality of products attracts the user because they are design according to society needs. 9
Negative- it impacts negatively on the sales of the ASDA because it deals globally andif any country consumers are not aware about the technology use than it is not good for the company market. Technological factor-UK is one of the most advanced countries in terms of technology. Here,business develops newtechnologies to offer best solutions for their customers. ASDA is all about technology who provide best solutions to the problems of the user and which is very creative. It also helps in increasing sales and growth of the company. Positive –ASDAinvests more in research and development department to analyse the new technology this will generate more opportunity for the company and gain good brand image of the organisation(Soundararajan, 2018). Negative-ASDAuse latest technology to produce their products, but there is rivalry firm present in the market who also use those technology that will affect the profitability of the supermarket.Legal factor-This factor includes legal laws that a company follows in which it operates. Since supermarkets works globally and follows rules and regulations of the countries it which it operates and sell their products legally in the market. It includes employment laws, safety laws, trademark registration etc. Positive– This factor influences a positive impact on the productivity and proficiency of the ASDAbecause it follows a employment laws where every worker have equal right and fairly pay according to their experience this will generate productivity and earns higher growth. Negative-If these legal rules and regulations does not follow according to the nature laws than it will negatively affect the market and rate of return of the organisation.In context of ASDA, if manager does not follow the proper guidelines and not to follow the environment law than it negatively impact the sales of the supermarket company ASDA.Economic factor-It includes interest rate, growth rate and exchange rate that will affect the Supermarkets in various market. This factor influences by buyer who purchase products. Organisation produce high- end products, if the customers purchase increase or decrease this will affect the certain market(Kim, 2015). Positive-if the country economy is good than it will increase the buying power of consumers for ASDA. And the growth rate of the company is more than it will increase the business and its sales. 10
Negative-if the country in which ASDA operates, inflation rate is high than it will negatively affect the buying power of the customers and also reduce the sales of the products . TASK 4 P5 Internal and external analysis of organisation ASDA is the company which is known for innovative ideas and best seller of the country. Organisation strategy is to covers the whole market by its fragmented products. For this it analysis their strategy internally and externally which are as follows. SWOT analysis- It is an easy framework that generate strategic solution from identify the situation. In this strength and weaknesses are internally and opportunities and threats are external based(Noe and et. al., 2015). StrengthWeaknesses ASDAcreatesastrongdealer community where distributor not only promote the products but also invest in training the sales department to explain the consumers about the products. It creates a good culture in the company. Theykeepapropertrackrecordof developing innovative products. ASDA is not successful in combining firm with different work culture this willleadtodecreaseinthemarket share of the company. Profitability and net contribution ratio of the firm is below the average of the industry and it will reduce the brand image of the company. OpportunitiesThreats Freetransactionincashprovidesa goodopportunitytotheproduct department because more cash in bank provide the company to invest in new techniques. Newpolicyoftaxcreatesan The major threat of ASDA is that is has limitednumberofhumanresource whichdecreasetheprofitsforthe company. Highlyprofitableproductsarein demand only on seasonal time this will 11
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opportunityforthesupermarketto significantly do their business. lead to impact the profits. Sainsbury is one of the leading groceries, clothing etc. store in the UK. To cover the whole market and earns more profits they analysis the external and internal environment of the company by using SWOT analysis. Strengthweaknesses They provide a high level of customer satisfaction which helps in generating thehigherprofitswithlonger sustainability. Sainsbury have strong brand portfolio which helps in expanding the business globally. Theyspendlotofmoneyonthe workforce which creates more expenses in the training session. Theyneedmoreinvestmentin technologysectorbecauseofthe current era demand. OpportunitiesThreats Follow new fashion by the consumers help them to create more new products with unique features. Theyattractmultiplepeoplefrom online source this will save the time and money . Increase in raw products can pose a threats to the company proficiency. More pay of the employees can reduce the profits and increase the pressure of the company. P6 Interrelation of macro factor with strength and weakness of the organisationPolitical factor-This factor is favourable to the technology in forASDA to use innovative technology and provides guarantees for their purchased products that is effectively link with government policies.It is a strength for the company because it helps in providing the favourable technology in making and promoting the goods.It also includes some weaknesses because involvement of government of country it reduces the profit margin of the company. 12
Environmental factor-This factor is relate with the ASDA products and services like they design the innovative product which is environment friendly and does not harm the external environment in producing goods this is favourably connected to the company culture.It is the strength of the company because in this they properly track the record of there using technology so in future they easily identify it and it helps in smooth running of business.The major weakness in this they not work according to the culture of the company.Social- cultural factor-this factor is related to the opportunity and strength of the ASDA where they solve regular problems of the customers and crate a loyal customer. This will improve the brand image.The major weakness in this sector of pestle analysis is that is there is limited number of workforce available in the company this affect the society standard and their income.Technology factor-It is the important factor for the ASDA and it is related to the strength of the company. In this it provides that products which make a life easier of the buyers like organic foods that provides energy.Using advanced technology according to the environment needs creates more investments this affect the profitability of business and using new technology by firm takes the risk of attracting customers or not.Legal factor-this factor relates with the weakness of the ASDA in which the products that a company produce is easily copied by the competitors and this will reduce the image of the company(Pearson, 2017).It also includes strength like they protect their innovation while using intellectual property right. Economic factor-this factor is relate to the weakness of the ASDA company where they charge high price for their products and because of bad economic condition it will affect the company sales.Adopting change and new technology makes more investment this will affect the sales of the company. CONCLUSION From this precedingreport, it is to be concludedthat business environment isvery dynamic in nature that includes different types of organisation like private sector, public sector and voluntary sector with their legal structure. Because of this report, it has to be identified that every organisation has its own market share, growth and sustainability. Moreover, this project 13
analyses the internal and external trend to create more opportunities and reduce threat which increases its profitability and efficiency of the company. 14
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