Table of Contents INTRODUCTION...........................................................................................................................3 TASK 1............................................................................................................................................3 P1 : Various types of organisation and their purpose &legal structure..................................3 P2. Scope & size of different organisations..........................................................................5 TASK 2............................................................................................................................................7 P3 Relationship between organisational functions & their link with structure of organisation & its objectives.......................................................................................................................7 TASK 3............................................................................................................................................8 P4 Positive & negative impact of macro environment on business operations......................8 TASK 4............................................................................................................................................9 P5 Internal & external analysis used in identification of strength & weakness.....................9 P6 Interrelation of strength & weakness with external factors.............................................10 CONCLUSION..............................................................................................................................13 REFERNCE...................................................................................................................................14
INTRODUCTION Business environment consists of external & internal environment factor which is having affect on organisation and its functions. It consist of various factors such as technology, suppliers,society,trendsofmarketandsoon.Itisveryhelpfulinenhancingvarious opportunities of business. In this report London EV company has been considered which was established in 2013(Schaltegger, Lüdeke-Freund and Hansen, 2016). they are willing to expand their operations in other parts of UK.For those objective various external factors are being analysed which is having impact on profitability and productivity of the company. Types of companies, scope and their legal structures are discussed in this report with this interrelatedness of organisation function is considered and lastly strength & weakness with various macro environmental factors are studied. TASK 1 P1 : Various types of organisation and their purpose &legal structure. The size of the organization depends on their objectives as well as goals. Below are the types of organisation with their purpose and scope: Public organisation-An organization is termed as public when more than 50 percent of its shares owned by the government. The main funding of this organisations are take place by government and are non- profitable. This organisation has three forms which includes public corporations,governmentcompany&departmentalundertaking.Forexample,Apublic company in UK which is funded by Government is BBC(Dahles and Susilowati, 2015). Purpose:The primary motive of this organisation is to being equality in nation and increase lining standards of people of society. Legal Structure of Public Organisation:Central:Abodywhocontrolsandgiveauthoritytoorganisationtoworkfor improvementinsociety.Theprofitearnedbypublicorganisationswereusedin development & welfare of societies.State: They give authority to those organisation who is come under a state supervision. Local: it consist of municipal communities who control a particular locality. Their primary goal is to make life of people of society easier.
Voluntary Organisation-It consist incorporated ad unincorporated organisation as well. In this type of organisation, the group of people assemble together and work towards for a common purpose(Upward and Jones, 2016). The group develop projects as well as programmes for a specific purpose . Voluntary organisation give service to an individual, cities, countries and groups. For instance, A UK based company “ Voluntary service overseas” aims to reduce the level of poverty from the economy. Purpose: They are non for profit organisation which motive is to upgrade societies and make environment better for people. LegalstructureofVoluntaryorganisation:Trust- Voluntary organisation funded by people and use this amount optimally for welfare of poor people. Unincorporated Association-These organisation projects are of short period as they work on a particular issues. Private Organisation-Those organisation which have more than 51 percent of share is not gain by government. It is an individual, corporation, agency or partnership as well. These organisation works to gain high profits from the public. They take loans or are funded personally by the people(Turner and Endres, 2017). London EV company Limited, a private car manufacturing company in United Kingdom is operating to earn profit . Purpose: Their main motive is to raise market share & earn high profits within the market. Legal Structure of Private Organisation:Sole Proprietorship-In this the company is owned by a single person. The profit and loss is not to be share by any other individual. The private organisation have limited liability and have minimum laws to follow.Partnerships: An agreement which took place between two person or more than it. In partnership, the profit is divided in equal ratio or as per written in partnership deed. The loss and risk is also divided equally among the partners of the company(Gallemoreand Labro, 2015).
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Limited Companies: In this, the subscriber is act as a separate legal entity. The capital is generated by shares. In addition to this, it is both private as well as public and they face issues for the sake of public interest. P2. Scope & size of different organisations. The possibility of dealing with a subject or instances is scope. When the operations is declared outside from national level it refer as global scope. On contrary, Local scope is when functions is performed inside or at national level. British Broadcasting Company:It is a public organisation and give services to customer with a motive to provide impartial service to its customers and public. It is one of the oldest organisation which is certified by Royal Charter(De Villa, Rajwani, and Lawton, 2015). The company has news, sports, entertainment channels through which gives information to the public and increase their knowledge. They charge an Annual fee from public which act as a funding for them. It deals in media channels of sports, news and culture. The company have more than 35,000 employees and give information to people in more than 31 languages so that they can reach to large audiences and increases its uses and profit. Voluntary service overseas-It is a charity whose main motive is to decline the level of poverty from the country. VSO have international, national and community volunteers who helps them to work effectively and achieve goals. The organisation have more than 71,000 skilled and talented volunteers. Its main project consist of education, health & livelihood (Trad and Kalpić, 201). VSO is operating in greater than 25 countries and emphasise on young people to work with them and improve the condition of societies. London Electric Vehicle company-The company head office is in United Kingdom and deals in manufacturing of cars and its parts. The company is renowned as Black cabs in UK. The
manager of London EV wants to expand its business operations in other cities so that they can raise customer base and profitability level. Compan y VisionMissionSizeScopeStakeholders London EV Thevision statementof companyis“ Togainthe leading position in the industryof cars”. The mission of the company is “To manufacture thosevehicles whichdefines theirclassand upgrade standardof people”. Thecompany wasformulated in year 2013 and havegreater than550 employeesin the company. Thecompany wantsto expandits businessin othercitiesof United Kingdomand increasetheir presencein market. Itisajoint ventureandis basedon manufacturing of china. BBCThevisionis toprovide unique service anddatato customersand gainhigh profits. Themission statementof BBCis“To educatepeople bygiving proper information andgivehigh qualityservice to customers”. Thestaff membersof companyis greaterthan 35000and functionsin33 countries. The company is planning to add morechannels whicheducate youngpeople andbrings changesin society. Thecompany have external as well as internal stakeholders whichincludes customers,tele partners,media partnersand many more. VSOThevision statementof VSOis“to remove Toaddress marginalisation andremove povertyisthe Thecompany hasaround 76000skilled andtalented VSOwantsto attainmore peopleby expandingits Beneficiaries, Volunteersare the stakeholders ofVSOwho
povertyfrom the nation” missionofthe company. volunteersand functionin greaterthan16 countries. functionat globallevel. With this, they reachtolarge audiencesand remove poverty fromallover the world. provideservice to public. TASK 2 P3 Relationship between organisational functions & their link with structure of organisation & its objectives Every organisations has to perform necessary activities which are performed by various functional departments(Vij and Bedi, 2016).For all activities to be carried on in an effective manner it is necessary to utilize resources available with a company. Relationship between different functional departments are described below: Sales & Marketing:Marketing department of company is involved in making strategies of how to sell various goods & services and main objective of sales department is to maximize sales so both these department impact each other and help each other in achieving objectives laid by both of these department. HR&Operationdepartment:Operationsdepartmenthastheresponsibilityof performing all major functions of company and HR department has responsibility of hiringpeopleaccordingtorequirementsin organisationso boththesedepartment coordinate with each other so that there is high effectiveness and efficiency in overall functions of organisation(Saebi, Lien, and Foss, 2017). Organisational structure:This is defined as a structure which helpsorganisation and their employees to understand how to perform various organisational functions. This structure helps in
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understanding of roles, responsibility which have to be understood by employees in company. There are various different structures which are present in any organisation such as: Divisional structure:This is a structure which is divided according to various products and service lines which are present in organisation(Hansen, 2018). Matrix structure:In this type of structure there is reporting which has to be done to more than two managers in organisation. Thisrelationship is there between managers and subordinates in form of a grid or a matrix. TASK 3 P4 Positive & negative impact of macro environment on business operations Micro factors: These consists of these factors which are affecting the strategy of a business when they are making decision and their performance level. This also has impact on individual business as there are different strategies, resources and capacities which are affected by the changes which aretake placein macro environment . Different micro environment factor are employees, competitors which are helping in achieving various business objectives Internal factors:These are factorswhich have impacton operations of a company and also its overall culture such as structure, leadership etc. employee support is a factor which is also having impact on achievement of laid objectives(Wood and Logsdon, 2017). Macro environment factors:Theseare factorswhich are having bothpositive & negative effect on organisation and are beyond the control of organisation. For analysis of such factor it is necessary for understanding various trends prevailing in the macro environment. PESTLE analysis is a tool used for understanding various macro environment factors. Political:These are those factors which are havinga relation with intervention of the government on functioning of business . London EV company Limited is dealing with some legislations which are having relation with policies and vehicles with low emission of harmful gases. Positive:London EV company has to form strategiesso that negative impact can be minimized. Negative: There are large number of changes which are taking place in the external environment and are concerned with changing rules of government.
Economical:There are various economic forces which also affects functioning of a company. Positive:This is related with the purchasing power of customers and increase in thiswill lead to increase of salesin company . Negative:If the economic factors are not in favour of company then this will lead to reduction in overall sales and wastage of resources which have been invested by this company. Social:This is related to the changing patters of individual behaviour. There are many socio cultural factors which arehaving an affect on sales ofcompany(Kopnina and Blewitt, 2018). Positive:Ifthere is a sudden change in preference of customers and they develop liking for vehicles thenthis will have a positive impact in form of increase in sales of company. Negative:Consumer behaviour is very unpredictable and this leads to negative impact by reduction of sales in London EV company. Technological:This factor is related with technology advancements which may have positive or negative impact on a company. Positive:Innovation will help in attracting more customers as if a technology is developed where vehicles are environment friendly then this will help in sustainable advantage by the company. Negative:There may be situations where competitors may adoptthe technology faster and this may lead to difficult survival for London EV company in market. Legal:Laws of a country have to necessarily followed and whenever any new Strategy is being adopted by the company such as expansion, merger or acquisition. Positive:This leads to more safety of their customers(Aithal, 2017). Negative:Large number of laws and regulation leads to rigid policies in a company. Environmental:every business is operating in a external environment and this is having both positive & negative impact on a company . Positive:If London EV will be having vehicles which are having low consumption of fuel then this will help in conservation of environment. Negative:Various pollution laws have become very strict which leads to compulsory adherence and if not followed then high penalties are imposed.
TASK 4 P5 Internal & external analysis used in identification of strength & weakness Internalanalysis helps inanalysing competencies, competitiveness and viability which is related to opportunities and threats which are present in macro environment. This is very necessary for all organisations based on SWOT: Strength:London EV company so engaged in engineering services . They are offering various facilities like distribution of various parts of vehicles, designing of structureof body of cars. Having presence across world is also big strength of this company. Weakness:It becomes very difficult for them to approach a new market or enter a new country as such countries already have presence of many established car manufacture companies which leads to a lot of investment and resources which have to be invested by company. Opportunities:There are many opportunities in year 1950 UK was a country which was at second position in terms of manufacturing of cars. Hence, there is a great opportunity for this company that they can expand their market operation's across various parts of UK which can help London EV company in expanding their market share. Threats:There are many threats which are present in external environment such as presence of many competitive brands such as Morgan, Land Roverm Bnetley, Rolls- Royce which is imposing huge threat on London EV company and because of presence of such competitors there is a need for continuous modification for survival in the external environment. P6 Interrelation of strength & weakness with external factors In every organisation there is a necessity thatanalysis has to be done both internal and also externally this is very important for identifying various opportunities which can be availed and understand the impact of threats present in market(Brown,2018). Such threats must be minimized by usage of core strengths of of the company. There is always a relationship internal & external factors. Impact of externalenvironment factors on London EV Company Limited: Political impact:
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Strength:UK Governmentis helping various companies in their expansion plans. Government is helping the companies in having a market so that they can do expansion. This has created many opportunities for London EV company limited. Weakness:There are many political barriers which have a negative impact on companies operating in manufacturing industry like increased taxation regulations, political barriers which leads to rigidity. Economical impact Strength:This is very helpful for London EV company as they can implement their expansion plans which can lead to overall development of company. Weakness:There is a decreasein sales of companies which are existing because of recession and other environmental issues this has also impacted London EV company as its sales have also been reduced(Chiadamrong and Sophonsaritsook, 2015). Social Impact Strengths:With the increase in personal disposable income of people they started spending their money on purchase of luxurious items this leads to increase in their status. This will be having a benefit for London EV company as their sales will also increase. Weakness:There are different requirements of very customer and this has to be continuously monitored by London EV company which leads to continual modification by this brand. Technological impact Strength:Advancements in technology has created a situation where there is demand for electric cars which is using minimum fuel(Boda and Zsolnai,2016). This will be beneficial for London EV company Limited. Weakness:Technological advancements may lead to adoption of latest technology faster by various competitors this can negatively impact sales of London EV Company Limited. Legal impact Strengths:If all legal requirements and compliance is done by company then this will lead to effective brand image in market. Weakness:Every country has different legal laws which leads to lot of modifications which has to be taken care of by London EV Company. Environmental
Strength:Variousresourcessuchassustainableenergyresourcewillhelpin establishment of effectiveness in functioning of company(Dirican, 2015). Weakness:Each country has their own set of rules in relation with protection of environment which has to be implemented by London EV company Limited.
CONCLUSION It is being concluded thatmacro environmental factors posses a impact on achievement of goals in every organisation. Various tools such as PESTLE analysis, SWOT analysis are taken in use which help in making a analysis of various environmental factors. Overall mission & vision of company is also understood with help of services which are being provided to customers. Environmental analysis plays a very important part in assessment of all the factors which are affecting a organisation's internal functioning.
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