Business and Business Environment of H&M

Business and Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different type of organisations and their legal structures......................................................3
P2 Size and scope of different organisations..............................................................................5
P3 Relationship between different organisational functions and their link to organisational
objectives and structure...............................................................................................................7
TASK 2............................................................................................................................................8
P4 Positive and negative impact of macro-environment on H&M.............................................8
P5 Internal analysis of H&M in identification of strength and weaknesses ............................10
P6 Interrelation of strengths and weaknesses with external macro factors...............................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment consists those factors which affects the working of company. It
consists internal and external factors which have positive and negative effect on companies.
Internal factors includes the strength and weaknesses of company which are in control of
management. External factors includes political, social, legal, etc. which affects the working of
company and not in control of the management. Hennes and Mauritz is fashionable clothes
retailer in Europe. It provides the fashionable designs in high quality at affordable price. BBC is
public company which provides the services related to broadcasting (Bos‐Brouwers, 2010).
In this present report explain about, Different type of organisations and their legal structure and
also defined about the size, scope and relationship between the functions of these companies.
Here also define about, impact of macro environment on performance of company and internal
and external analysis of H&M.
TASK 1
P1 Different type of organisations and their legal structures
There are many organisations which work in market. It includes public, private and
voluntary organisation. The functions and the legal structures of these companies are different
from each other. All the organisations and their legal structure is defined below:

Public company
It includes those companies which are under control of government. All these companies
are established under special act and by parliament. These companies provides the services for
the benefit of society (Charter, 2017). All the income generated by government from these
companies are applied for the development of economy. The main objective behind the
formation of public company are:
 Provide job opportunities to the individual of country which contributes in developmnt of
economy.
 To provide quality services to society.
 Develop infrastructure of country and promote trade
BBC is public company which provides the services related to broadcasting. It provides the news
related to sports and other important matters happen in country to general public.
BBC is large company because it operates their business activities in all over the world. The
large number of employees are work to control and manage the business. The total number of
employees in company are 35402 which contributes in success of the organisation activities.
Objectives of BBC
 To provide information to general public related to different important matters
 To expand the broadcasting services all over the world
Legal structure of public company
The legal structure of public company includes central, state and local government.
 Central government: This includes the all departments of central and state government
 State government: It includes all the activities related to state government and the
services provided by state agencies (CHUANG and Liao, 2010).
 Local government: It handles all the activities related to administration of public
company
Advantages and disadvantages:
Advantages Disadvantages
This helps the economy of country to grow by
providing them more funds through FDI.
There is more restrictions on the public
company
This helps in the development of the They required to take the approvals of