Business and Business Environment John Lewis
Added on 2020-10-05
17 Pages3999 Words259 Views
BUSINESS AND BUSINESSENVIRONMENT
INTRODUCTIONBE plays an important role in every business and it is combined with micro as well asmacro factors that affects the operation and functions of company. There are various elementsthat are included in the business environment which customers and suppliers, betterment inapplication, authorities act and activity, cultural as well as system direction (Calabrese and et.al.,2018). The entire performance, growth, profitability as well as entire survival of the company isaffected by these factors. This present report is context to John Lewis company will be chosenfor assessment. It is private partnership company in UK which operates in clothing, watching,jewellery, cosmetics, food, audio visual computing etc. Its headquarters are located in LondonEngland UK. It was founded in 1929 by John Spedan Lewis. This present report will cover,different types as well as purpose of organization, Furthermore, this will also explain the size aswell as scope of different types of organisation. In addition to this, Pestle analysis tool will alsouse to identify external factors affecting operations of the business. MAIN BODY1. Different types of organisations as well as there purpose and the growth of the internationalbusiness environment.In the business environment there are different types of organisation exist as well as theseare very essential factors in the growth of international business environment. Thus, it is verysignificant to understand the actual concept of public, private and voluntary organisation thatpresent in the business environment.Private Sector Organisations- The companies which are owned and controlled byindividual or groups of individual are known as private sector organisation. These organisationsare nit the part of government or state authorities. These companies are also a very important partof the economy. The main purpose or intention of private companies are to earn high amount ofprofit by increasing sales and market share. In order to start a private company the maximumlimit of members are restricted to 50 and minimum 2. The subscription of shares of privatecompany is not allowed for public. John Lewis company is a private sector organisation whichis operating with the intention of earning huge amount of profit by increasing sales as well asmarket share (Schaltegger and Wagner, 2017). Some examples of private sector companies areDevelopers, Designers, Repairmen, Accounting Tax, Dentistry, Apple, Morrison. Tesla etc. andmany other private sector companies. 1
There are some benefits and drawbacks of private sector organisation which are- BenefitsAll the members in the private organisation are known to each others.Owner has all the power of control of entire organisation. Statutory meeting are not necessary in the private organisation.There are two directors to run the company. Liability of all the members are limited. DrawbacksThe share of private limited company is not transferable it is restricted. The maximum limits of all the members are restricted which is not more than 50.Private organisations are nit allowed to issue any prospectus. Public Sector Organisations- The companies which are owned as well as control bygovernment of country. Government includes federal, state, municipal or provincial government.The while control of company is remained in the hands of government legal authorities. Themembership are always open to the general public. In order to start a public limited organisation,there are totally 7 minimum number of members are requires and there is no maximum limit ofperson. Prospectus is the main source of issuing shares to public. Organisations have greatersupervision as well as control in this type of organisation. All the members have limited liabilitypublic limited company. The main purpose or intention of public limited companies are thebetterment or welfare of the communities. They generate employment in the economy. The stockor inventory of public limited company can be acquired by any person. The formation of theseorganisations are lawful (Moroni, Arruda and Araujo, 2015). Some examples of public limitedcompany are British Petroleum (BP), Burberry Group PLC etc. There are some benefits and drawbacks of public sector organisation which are- BenefitsThe liability of all the members are limited. The shareholders are free of any riskand damages. Because of large number of shareholders the risk is dissolved. Retirement and death of any shareholder does not affect the life of organisation.Drawbacks2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Business and the Business Environmentlg...
|18
|5544
|238
Business and Business Environment - P1 Types, Purposelg...
|14
|4282
|330
How Business Operateslg...
|16
|920
|20
(solution) Business Environment of Tescolg...
|12
|3758
|167
Business Environment Analysis - John Lewislg...
|15
|4536
|316
Business and Business Environment Assignment - John Lewis Partnershiplg...
|15
|4569
|367